Allica Bank expands residential AVM bridging proposition to 75% LTV on loans up to £2m
Allica Bank, the challenger bank for established businesses, has expanded the use of an automated valuation model (AVM) in its bridging finance proposition, increasing the maximum LTV from 70% to 75% and more than doubling the maximum loan size for an AVM from £750,000 to £2m.
This enhancement opens the AVM route to significantly larger residential bridging deals, removing the need for a physical valuation in eligible cases, which not only helps to save on cost for borrowers, but also helps brokers provide their clients with greater speed and certainty when securing property finance. Allica says it also remains committed to providing strong value for brokers and their established business customers, with residential bridging rates starting from 0.69%.
The AVM is available for both residential purchases and refinances that meet Allica’s criteria, with no asset manager or physical inspection required. 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.
The move comes at a time of strong demand for Allica’s bridging proposition, with the bank on track to deliver £250m in bridging originations this year. The change follows a series of enhancements introduced in June, including a 0.03% reduction on loans over £750,000 for select products, an improved refurbishment finance offering and a limited-time cashback across all bridging loans. All new applications submitted before 30th September will see eligible customers receive 0.25% cashback on the loan balance if completed by 31st October 2026.
Steve Palfreeman, head of sales – Bridging Finance at Allica Bank, said: “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 £2m 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.
“We made this change in response to what brokers are telling us they need to support their clients: greater speed and certainty without unnecessary friction. Alongside this change, we’ll keep looking for practical ways to make it easier for brokers to get the right finance in place for their clients.”