GHL group joins the Exchange Bond revolution

GHL Group – one of the UK’s premier mortgage distribution companies – will become the first mortgage network to offer its members the Exchange Bond, an alternative to the traditional cash deposit for clients to consider when securing a property.

The Exchange Bond is an innovative financial guarantee that helps to facilitate property purchases and is therefore a useful additional tool for mortgage brokers to include within their sales strategy. By allowing clients to hold onto the cash lump sum usually required at exchange of contracts, the Exchange Bond creates financial flexibility and opportunities to earn further investment instead of tying up funds in a deposit. This value added provides brokers with a competitive edge helping them to attract more potential clients, particularly those keen to invest and expand property portfolios.

Known for its pioneering approach, GHL Group has launched a new function on its website (ghl-live.co.uk), facilitating the Exchange Bond application process and therefore putting this tool at their members’ disposal.

John Smith, Sales & Marketing Director at GHL Group, comments: “Our aim is to ensure that our distribution not only has access to a wide and appropriate choice of mortgages for their clients, but also that they have extra tools to hand that may give them competitive edge and add real value to their service. Keeping abreast of this new opportunity in our market and positioning the product in the right manner will undoubtedly lead to more business and I believe the Exchange Bond will be an important addition to our intermediaries. It is a truly innovative financial product and it is also incredibly simple to use. We are confident that our members will be as impressed with it as we have been.”

Developed by the City of London-based Exchange Insurance Company (ExCo), a specialist European general insurer authorised and regulated by the Financial Services Authority, the Exchange Bond is a cost-effective and safe alternative to using cash for the exchange.

Frank Speight, ExCo’s Sales & Marketing Director, explains: “The Exchange Bond is designed to allow homebuyers financial flexibility. For a small premium, an Exchange Bond can be used instead of a 10 per cent deposit to secure a property. This allows the purchaser to invest funds elsewhere to generate further interest between exchange and completion or, alternatively, it can allow time for raising the funds necessary to pay the full agreed price for the property which is required on completion.”

Leonie Moffatt, ExCo’s Senior Executive Business Development, Intermediary Channel, adds: “GHL Group is not only one of the top five networks in the UK but also one that has its finger on the pulse in terms of new products and services. We are not surprised, therefore, that they are the first network to sign up to the Exchange Bond and are delighted to welcome them on board.”