Acting as a financial guarantee to developers or vendors on a buyer’s behalf, Zurich’s product allows homebuyers to delay paying a cash deposit until the property is complete, thereby enabling them to act quickly to secure the home they want.
Instead of having to hand over a full five or ten percent cash deposit, buyers simply pay a guarantee fee which is typically cheaper than borrowing from the high street.
Available to homebuyers via the XBond Company, Zurich carry out all necessary credit checks to confirm that the applicant can afford to fund the deposit on completion. Barratt Developments Plc is the first developer to enter into this agreement, with others following suit.
Paul Gratton, executive chairman of The XBond Company, said: “XBond was set up to provide innovative financial solutions to assist buyers and owners of property. The team at XBond wanted to find a way to improve the process for buying property in the UK at a time when speeding up the house buying process and increasing the availability and affordability of new homes has become a political issue.
“We are delighted to have secured not only an exclusive arrangement with Zurich, but also with Barratt Developments. In a world that is increasingly wireless and cashless, the Zurich Property Deposit Guarantee is a simpler, faster and more affordable way for people to guarantee a deposit on a property. Not only is it a great financial product for customers and developers alike, but also the market overall.”
