Allica Bank has expanded the use of an automated valuation model (AVM) in its bridging finance proposition.

The bank has increased the maximum LTV from 70% to 75% and the maximum loan size for an AVM has moved from £750,000 to £2 million.

It says the changes open the AVM route to significantly larger residential bridging deals.

The AVM is available for both residential purchases and refinances that meet Allica’s criteria.

Below-market-value purchases are also available for up to 90% of the purchase price, while title indemnity insurance is available as a standard alternative to full legal work.

Allica Bank head of sales bridging finance Steve Palfreeman says: “Speed and certainty are critical in bridging, especially for borrowers who need to move quickly when opportunity arises.”

“Waiting for a physical valuation can add time they simply don’t have, which is why we’ve carried out extensive research comparing our AVM with physical valuations to understand where we can safely remove that step on eligible cases – saving valuable time for brokers and their customers.”

“Expanding AVM-based bridging to 75% LTV on loans up to £2 million means we can now offer that option on significantly larger residential bridging cases.”

“For brokers, that means a simpler route through valuation on eligible deals, the potential to save costs for their clients and get them moving more quickly.”

In July, Allica Bank dropped its arrangement fees on commercial mortgages of £750,000 and above until 30 September with the aim of boosting business growth.