AVM Bridging Loans - Fast & Flexible Automated Valuations
Automated Valuation Models (AVMs)
At Aura Capital we lend using and work with lenders that use AVMs (Automated Valuation Models) to speed up applications and reduce upfront costs for borrowers. On the right case, an AVM can remove the need for a physical valuation and get your funding over the line much faster.
This page explains what an AVM is, when lenders typically use them, and how they fit into bridging finance and buy to let lending.
What is an AVM?
An Automated Valuation Model (AVM) is a computer generated estimate of a property’s value. It uses:
Recent Land Registry sale data
Local market comparables
Property attributes (type, size, location, tenure etc)
Historical price trends
to produce a value and a confidence score.
Lenders plug your properties information into AVM platforms (such as Hometrack and Rightmove Data) to obtain an instant valuation instead of instructing a surveyor to visit the property.
AVMs are popular with lenders and borrowers because they can:
Speed up applications – no waiting for a surveyor appointment or report
No costs – compared to a full valuation report
Avoid access issues – useful where it is difficult to gain entry
Provide consistency – same model, same data, less human variation
For borrowers and brokers, that usually means:
Quicker credit decisions
Lower upfront valuation fees
Faster completions, especially on tight timelines (auctions, chain breaks, remortgage deadlines etc)
Instant approvals
When are AVMs accepted:
Exact criteria vary by lender, but in broad terms AVMs are usually considered on:
Standard residential properties
Ex Local Authority properties
Standard construction (brick walls, tiled roofs etc)
Straightforward cases where time is of the essence
Freehold or long-leasehold (Lease terms typically 85+ years remaining)
First charge loans
Second charge loans
Regulated and unregulated bridging
Loan size & LTV examples*
Residential bridging: up to around 65–75% LTV
First charge loans: up to 70–75% LTV
Second charges: often accepted up to £250k–£1m loan size depending on confidence score
Re-mortgages: confidence level usually ≥4
Auction & Purchases: confidence level ≥2
*These are typical examples — exact thresholds depend on the lender
When an AVM is not suitable
Even if an AVM returns a value, lenders will often require a physical valuation if:
Lease term is under 85 years
The building is non-standard construction
The AVM confidence score is too low
The 90-day value differs significantly from the full market value
The security is commercial or semi-commercial (almost always requires a full valuation or desktop valuation)
A heavy refurb or development is planned
A gross development value (GDV) assessment is needed
AVMs are not used for:
Development finance
GDV and refurbishment based bridging
Commercial properties
Complex or specialist assets (care homes, HMO’s,
If your property isn’t eligible for an AVM, Aura Capital is one of the UK’s leading providers of no-valuation bridging loans. We offer a range of fast, practical solutions that do not require a valuer to visit the property, helping you save time and reduce costs.
You can explore our alternative options here: Desktop Valuations and No Valuations.
How AVMs fit into Bridging Finance
For bridging, AVMs can be very useful, particularly when:
There is a tight deadline (auction completion, expiring mortgage, notice to complete)
The property is standard residential stock
The LTV is comfortably within the lender’s risk appetite
However, many bridging lenders still prefer a physical valuation where:
Works are being carried out and a GDV is required
There are multiple units, titles or mixed use elements
The loan size or leverage is higher
The security is commercial or semi commercial
At Aura Capital, we are one of the leading providers of no valuation, AVM, and desktop valuation loans and we can get your bridging loan complete in days, not weeks. At Aura Capital we will always tell you upfront whether an AVM is likely to be accepted or if you should budget for a full valuation.
When time is critical, waiting for a full surveyor’s valuation can delay your bridging loan. That’s where AVM bridging loans (Automated Valuation Model) come in.
How fast is it?
Enquiry (15 minutes) → Same-day AVM check (10 minutes) → Credit-backed terms (24/h)→ Legals (24-48/h) → Funded (case-dependent)
When an AVM Bridging Loan Is the Right Choice
When your timeline is tight and you need a bridging facility fast, an AVM bridging loan gives you the edge. Instead of waiting for a full surveyor’s inspection, the lender uses an automated valuation model (desktop or online valuation) to assess market value. That means you can move quickly, reduce upfront costs and secure your funding without delay.
This route is particularly suitable when you are:
Purchasing at auction and need completion in days rather than weeks.
Refinancing an existing bridging loan where the property is in good condition and standard residential.
Looking to release equity quickly for your next project and time is of the essence.
Dealing with a property type that fits typical AVM criteria (standard construction, clear title, recent comparable sales).
However, if your deal involves heavy refurbishment, a complex property structure, commercial use, or high LTV beyond AVM thresholds, a traditional full surveyor valuation will still be required. Using AVM bridging finance intelligently means you still complete the deal fast, but only when the asset and circumstances are right.
Preparing Your Case for an AVM Bridging Loan
To maximise your chances of a successful AVM bridging approval, preparation is key.
First, ensure your property and loan terms align with an AVM-friendly profile: standard residential, minimal works, clear exit strategy, and LTV within typical thresholds (many lenders will permit up to about 75% for AVM cases).
Next, compile your application package: current ownership details, evidence of purchase or refinance plan, recent comparable sales or market commentary, borrower track record and bank statements. Provide a short summary of your exit route (sale, refinance, or redevelopment) and a timeline showing drawdown and repayment.
Because AVM bridging loans reduce valuation time, your focus should also be on speed of execution. Brokers and lenders increasingly favour cases where you can demonstrate readiness and clarity.
Finally, before you commit, check the cost: interest rate from around 0.49% per month for AVM-friendly deals, smaller loan sizes may incur higher premiums, and conditions should be clearly outlined (arrangement fee, legal costs, exit fee). Aura Capital guides clients through the full process, ensuring you’re structured correctly and funds can be drawn within as little as 5 working days.
Example Scenarios
AVM Auction Purchase
We assisted a client who had purchased a £150,000 flat at auction with a strict 28-day completion deadline. We were able to provide £112,500 net in just 8 days, using a desktop valuation instead of a full survey. This allowed the buyer to complete on time, avoid auction penalties, and later refinance smoothly onto a standard buy-to-let mortgage.
Fast Refinance
A borrower was approaching the end of their bridging term and urgently needed a rebridge to avoid default. Aura Capital arranged an AVM-backed refinance in under 10 days at 75% net serviced, preventing penalty charges and giving the client a further 6 months to complete the sale.
Frequently asked questions
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If your bridging loan application qualifies for an AVM, no physical valuation is required – that’s the main benefit of an AVM bridging loan. The lender will use the automated valuation as the basis for lending, so you won’t need a surveyor to inspect the property. However, this is conditional on the AVM result meeting the lender’s criteria. For example, the AVM must return a confident valuation within the expected range. If the AVM comes back with uncertainty or a value that doesn’t support the loan amount, then the lender may request a traditional valuation after all. Additionally, if any aspect of the deal falls outside the AVM program (property type, loan size, etc.), a physical valuation would be needed. In summary: you generally won’t need a survey for an AVM bridging loan, but be prepared for the lender to switch to a physical valuation if the automated route isn’t satisfactory.
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AVMs are fairly accurate for standard properties – that’s why lenders are comfortable using them for many cases. These models analyze extensive property data and sales comparables, often yielding a valuation in line with what a professional surveyor might conclude for a typical house. In fact, lenders require that the AVM have a high confidence score (usually 4 or 5 out of 5) before they’ll accept it. A confidence level of 5 indicates the model is very sure about the value based on available data. That said, AVMs provide an estimate. They can be less accurate if the property has unique features or if there haven’t been many comparable sales recently. A surveyor’s appraisal involves judgment and an on-site condition check, which an AVM can’t fully replicate. So, while an AVM might nail the value for a 3-bed semi on a street where lots have sold recently, it might be off the mark for a one-of-a-kind rural cottage. Overall, for mainstream properties an AVM’s accuracy is high enough that lenders trust it for lending – but borrowers should use common sense. If you believe the AVM has missed something (e.g., your property’s new extension or a structural issue), discuss this with your broker or lender.
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No, typically not. The majority of AVM bridging loan offerings are restricted to standard residential properties. Houses in multiple occupation (HMOs) and commercial properties usually do not qualify for AVM valuations. This is because their valuation involves additional complexity – for HMOs, the value might be tied to rental income and yield, and for commercial properties, there may be specialized factors (leases, business use, etc.) that automated models aren’t equipped to handle. Lenders almost always insist on a traditional valuation for HMOs and commercial assets to get a professional’s opinion on those nuances. There may be rare cases where a small HMO (e.g. a 4-bedroom house let to 4 individuals) in all other respects looks like a standard house – if the lender views it as a normal residential security, an AVM might be possible. But as a rule of thumb, if your property is an HMO or commercial, plan for a physical survey. Aura Capital can still arrange fast bridging finance for these properties, but we’ll line up a valuer quickly rather than rely on an AVM.
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The main points to consider (besides what we’ve covered above) are: interest costs and exit strategy. Some AVM/no-valuation bridges may charge a bit more in interest or have slightly higher fees. Always check the overall cost and ensure it makes sense for your project’s profitability. Also, have a clear exit strategy (repayment plan) for the bridge – whether you’re selling the property or refinancing to a longer-term loan. The speed of an AVM loan is great, but it’s still a short-term loan that needs repaying, and the absence of a detailed valuation doesn’t change that fundamental risk. Make sure you’re confident in the property’s value and your exit, since the lender is essentially trusting the AVM – and you should have confidence in your asset as well. If you’re unsure about any of these aspects, speak with our team for guidance before proceeding.
