Physical inspections could become a thing of the past for mortgage lenders as automated valuation models are met with a seal of approval from leading rating agency Standard and Poors.
Its latest guideline on automated valuation models demonstrates they are as near-as-dammit as accurate as a surveyors physical inspection.
Hometracks AVM utilises its database of over twelve million property records to undertake online valuations for lenders.
The online valuation service significantly reduces costs for mortgage lenders as the AVM offers a much faster and less expensive valuation procedure.
Hometracks Realtime product is also the only AVM that is indemnified. Lenders are protected against valuation errors of over 10% at up to 90% of the loan to value ratio. Lenders will therefore be taking a quantified risk when utilising Hometracks AVM.
Mark Witherspoon, chief executive of Hometrack, says: “We are delighted that the AVM is increasingly being recognised as the default valuation method replacing both drive-bys and physical valuations.
“The service we offer undoubtedly enhances mortgage lenders business operations by both improving customer service and delivering immediate cost savings.
“Furthermore, with the advent of the Home Information Packs the market needs this innovation to support the home-buying process”