Landbay has integrated automated valuation models (AVM) in order to speed up offer times significantly for its buy-to-let (BTL) product range.
AVMs are available on a new standalone range of 5-year fixed-rate products, with a maximum property value of £750,000 at 70% loan-to-value (LTV).
Rates start at 4.29% and are stressed at pay rate.
The range also includes a variable fee structure for increased affordability.
An AVM combines mathematical or statistical modelling with databases of existing properties and transactions to calculate property and rental values.
Through a pilot, Landbay found that AVMs sped up the time to offer and was three-times faster on average than a standard application.
In some cases, Landbay was able to issue an offer within 24 hours from the decision in principle.
Landbay has also found that using an AVM helped applicants save on average £500 as they did not have to pay valuation fees.
In one example from its pilot, a client saved nearly £4,000 in valuation fees on their portfolio.
Rob Stanton (pictured), sales and distribution director at Landbay, said: “There’s no question that in the current market, timing can make or break a deal.
“Brokers act with real urgency to support their landlord clients and there’s no reason why lenders shouldn’t be doing the same.
“We’re very proud to be the first dedicated buy-to-let lender to integrate AVMs to enhance our offering and the speed of our service.”
Joel Vinnicombe, head of product at Landbay, added: “Our extensive pilot ahead of the whole of market launch generated tremendous results, giving us the confidence that our AVM provides significant benefits such as speed to offer and lower costs to borrowers.
“We’re looking forward to working with our broker partners to support their landlord clients nationwide.”
