Tuscan Capital has added a free automated valuation model option to its new fast track system, which it says will save on borrower costs and speed up loans.  

The short-term property lender says an AVM can now be used as an alternative to a Royal Institution of Chartered Surveyors property valuation and inspection, where Hometrack data supports a client’s estimated value or purchase price.

The specialist will rely upon an AVM to 70% loan to value for purchases and 60% LTV for refinance up to a £750,000 valuation, with a confidence level accepted from 4.5. 

Its new AVM policy complements the firm’s fast track process, introduced last month, where higher value properties can also be underwritten by using a desktop valuation.

The lender says its fast track process “significantly speeds up the application process for most bridging cases. As well as adding a new valuation process, title insurance and search indemnity insurance can be utilised, and credit-approved term sheets can now be issued within four hours of an enquiry”.

It also adds, that personal guarantees, which require all parties to have independent legal advice, are no longer required on cases at 65% LTV and below.

Tuscan Capital sales director Richard Deacon says: “This further enhancement to our fast track process means a large portion of our bridging loan customers will benefit from both cost and time savings.

“Given the challenge in busy valuers’ turnaround times for valuation reports and their increasing costs, we feel that AVMs are becoming of crucial importance to our fast track Bridge proposition.”