George Wimpey joins the Exchange Bond revolution

The Exchange Bond, the innovative financial product that frees property buyers from raising a cash deposit, is now being offered to purchasers on selected new homes built by George Wimpey across its 26 regions.

Developed by City of London-based Exchange Insurance (ExCo), the Exchange Bond is the first of its kind in the UK. It is a financial guarantee provided by ExCo to a seller on behalf of the buyer that replaces the cash deposit normally required to secure a property purchase. The Exchange Bond offers a simpler and more affordable way to buy property.

This exciting new partnership with the one of the UK’s largest house-building companies follows a very successful seven month long trial in the East London division of George Wimpey.

Traditionally buyers have been required to make cash payments on exchange of contracts and then wait months or, sometimes, even several years for completion. Using the Exchange Bond to exchange contracts instead of providing a cash deposit, however, means that the buyer simply pays 100 per cent of the agreed purchase price at completion.

Kevin Belsham, Sales Director of George Wimpey, said: “The introduction of the Exchange Bond to our marketing effort has had an immediate positive impact on our sales. It is proving particularly attractive to investors, but is equally appealing to first time buyers, those trading up or even those families downsizing.”

Frank Speight, Sales and Marketing Director of Exchange Insurance, said: “We are very pleased to be working so closely with such a respected home builder as George Wimpey, and we are most encouraged by the way in which the Exchange Bond has been embraced by sales executives and their customers across such a broad spectrum of developments nationwide. “

George Wimpey found the cash needed at exchange often restricts people when buying property. The company’s sales executives were often asked to reduce the cash needed at exchange before buyers would commit. The introduction of the Exchange Bond solves this problem by offering greater financial certainty to George Wimpey whilst simultaneously facilitating the transaction and securing sales with buyers

Developers face a particular difficulty in the case of investors keen to buy several properties and, therefore, requiring them to make a substantial lump sum payment at exchange. Their main concern is that their money could be generating a return elsewhere. The Exchange Bond, therefore, is an attractive alternative to making cash payment since it enables investors to retain their funds between exchange and completion.

For George Wimpey, the Exchange Bond represents a unique and powerful marketing tool to offer buyers, particularly when they are selling units off-plan.

ExCo is a City of London-based specialist European general insurer, which is authorised and regulated by the Financial Services Authority. More information is available at: exchangebond.com.