View more on these topics

Brokers are positive about AVMs

Brokers are positive about the role of automated valuation models despite research from Pink Home Loans showing 10% have never heard of them.

A further 8% admit they have no idea what an instant mortgage offer is.

The 13th Pink 1000 survey questioned brokers about the role AVMs play in their businesses.

When asked whether they had used an AVM, 30% said yes. And when asked about speeding up remortgages, 88% said they would be prepared to use an AVM.

Brokers were also asked how important instant mortgage offers are to their client offering. Some 35% felt they were important and 24% said they were very important to their sales process.

Neil Hoare, marketing manager at Pink, says: “With the rise of technology I’m surprised there are still a few brokers who are not aware of the opportunities that AVMs and instant mortgage offers bring.”

“But it’s clear that speed of offer is gaining momentum in the broker market. This seems to go hand in hand with the increased comfort with which consumers are handling their borrowing requirements and their willingness to shop around.”

But Kevin Friend, strategic partnerships director at Primrose, says he believes the real number of brokers who are unaware of AVM technology is much higher and adds that AVMs have yet to prove themselves.

Recommended

Housing equity outweighs mortgage debt

Halifax has calculated that housing equity significantly outweighs mortgage debt with UK private stock now worth 3.8 trillion. This means housing equity is 3.5 x the value of outstanding mortgage debt of 1.1 trillion.The value of the housing stock has increased by 78% over the last five years, with stock rising by 12%, or more […]

Yorkshire to focus on five and 10-year fixed rates

Yorkshire Building Society was deluged last weekend with over 400 requests for five and 10-year fixed rate mortgages, following the Bank of Englands hike in the rate of interest.Consumer demand has prompted the building society to rush out a new range of products for January 19.YBS says the highlights from the new products, include a […]

Brokers, packagers and relationships

An important FSA survey on the relationship between packagers and intermediaries may have been missed by some brokers but they should be aware of its conclusions, says Bill Warren

Newsletter

News and expert analysis straight to your inbox

Sign up