Landbay uses automated valuations to speed up buy-to-let offer times

Landbay has become the first lender that only deals in buy-to-let to integrate automated valuation models (AVM), to speed up offer times significantly.

AVMs are available on a new standalone range of five-year fixed-rate products, with a maximum property value of £750,000 to 70% loan-to-value (LTV).

Rates start at 4.29% with a £1,299 product fee and are stressed at payrate. The range also includes a variable fee structure for increased affordability.

Rob Stanton, 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.”

AVMs combine mathematical or statistical modelling with databases of existing properties to calculate property and rental values.

During its pilot phase Landbay found that it’s three times faster than a standard application, allowing it to issue an offer within 24 hours form a decision in principle in some cases.

Landbay has also found that using an AVM helps applicants save on average £500 as they do not have to pay valuation fees. In another example from its pilot, one client saved nearly £4,000 in valuation fees on their portfolio.

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.”