The South Yorkshire Housing Association (SYHA) is now accepting Exchange Bonds from its clients instead of asking for a cash deposit upfront, whilst property investment company Fresh Invest has expanded into Bond provision.
The product both speeds up the purchasing process and minimises a buyer's capital outlay meaning that they can keep hold of their deposit until the sale of the property completes, freeing up finances in the interim period.
Margaret Walker, sales & marketing manager at the SYHA, said that providing such a large cash sum at the point of exchange creates a real barrier for buyers, especially the elderly, something the Exchange Bond is hoped to tackle.
Frank Speight, joint chief executive officer of Exchange Insurance Company (ExCo)said: “The Exchange Bond is designed to make homebuying more financially viable for many more people, from first-time buyers who would not otherwise have been able to get on to the property ladder, to key workers, existing home owners and even investors."
