Gen H implements automated property valuations at decision in principle stage.
The lender now tells brokers if eligible properties are suitable security before they submit a full mortgage application.
Gen H has announced that it will automatically run digital valuations (AVMs) on eligible applications at the decision in principle (DIP) stage. DIP is the first stage of the mortgage application journey, where a broker keys client information to get a sense of eligibility and maximum borrowing.
Now, where the property appears suitable at DIP, Gen H’s submission platform will display an initial property approval. So long as the property doesn’t change later in the application, this AVM can be relied upon by Gen H’s underwriters, making a DIP pass a reliable proxy for a full underwriting decision.
Most lenders only run a valuation when the full mortgage application is submitted, at which point a hard check is run on the client’s credit file. This can cause problems if the property isn’t suitable for the lender – in those instances, the buyer would either have to find a new property or apply for a mortgage with another lender, risking another hard credit check.
The addition of AVMs at DIP will help provide greater certainty earlier in the journey for brokers and their clients.
Luke Calton, Head of Product at Gen H, said, “We know that getting certainty as early as possible is top priority for our broker partners. Property decisioning was the missing piece to reaching a fully automated “yes” at DIP, so we're delighted to launch this new feature. We’ve built our systems from scratch, which means we can easily and immediately prioritise new quality of life improvements based on broker feedback. This was a popular request, and we’re looking forward to seeing how this new feature will make our brokers’ jobs easier.”
