XBond signs housebuilder Redrow Plc

Redrow, one of the UK’s leading residential and commercial property developers, building over 5,000 new homes a year, has signed up with The Zurich Property Deposit Guarantee.

Zurich PDG exclusively available through the XBond Company – is the new financial guarantee that enables homebuyers to secure a property by guaranteeing the required deposit with a simple and cost effective new product.

The Zurich Property Deposit Guarantee is a financial guarantee made to developers or vendors on the buyer’s behalf. It allows buyers 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, considerably cheaper than the cost of borrowing from the high street.

Redrow, trading from 10 regional companies across England, Scotland and Wales, directly employing 1,350 people and managing in excess of 100 new homes developments, has reached agreement with Zurich to enable potential Redrow customers to take advantage of the guarantee.

XBond has already reached agreement with Barratt Developments PLC, which builds over 21,000 homes per year. Talks are now at an advanced stage with a number of other major house builders who will be offering this innovative new product.

The Zurich Property Deposit Guarantee is straightforward. The XBond Company works with buyers to make sure the whole process is quick and easy. Zurich carry out all necessary credit checks to ensure that all Guarantee users meet or exceed the strict credit requirements that confirm the applicant can afford to fund the deposit on completion of the property.

Paul Gratton, Executive Chairman of The XBond Company, commented: “I am delighted that Redrow has agreed to offer the Zurich Property Deposit Guarantee to its potential buyers. This is the second leading UK house builder to recognise the benefits of offering this bond to potential customers and more will follow very shortly. Developers have been very quick to realize that the Zurich PDG simplifies and speeds up the entire buying process for customers and their own sales teams

“We focused our campaign in the UK and are delighted to have secured agreements with both Redrow and Barratt Developments, two of the UK’s leading housebuilders, which together build more than 26,000 new homes a year. The Zurich PDG is fast becoming one of the most sought-after financial new products and the interest has been phenomenal and, as such, we will now be launching it in the overseas market moving very quickly into Europe, starting with Spain, Florida and Hong Kong this year and then Portugal, Eastern Europe and the Middle East in 2008”.”

Simon Bennett, Sales and Marketing Director of Redrow, commented: “Redrow believes the benefits of offering the Zurich Property Deposit Guarantee to its potential buyers, along with the other incentives available to Redrow customers, highlights Redrow’s commitment to good customer service and providing practical and financial help for people to move home as easily as possible.”

For further information visit Thexbond.com.

FAQ’s:

Q. What is it?

A. The Zurich Property Deposit Guarantee is an alternative to providing a cash deposit when committing to buying a new home. The Guarantee allows you to delay paying the deposit until the build is completed – meaning that you, the buyer, can secure it quickly and conveniently.

Q. Who are The XBond Company?

A. The XBond Company works in association with Zurich. The Guarantee has been launched in the property market by Zurich exclusively with The XBond Company. The XBond Company will work with the customer to make sure the whole process is quick and easy from the moment they decide which property is right for them and until they take ownership.

Q. How does it work?

A. Instead of paying the deposit in cash, the buyer purchases a Guarantee from Zurich, which the developer agrees to accept in place of a cash deposit. The XBond Company ensures the application process is smooth and simple and rapidly guarantees the deposit to the seller – meaning that buyers can act very quickly to secure the property they want.

Q. Can the deposit be part cash and part Guarantee?

A. Yes. The Guarantee can cover the balance of the amount of deposit required. The XBond Company will be on hand to help customers understand what’s possible throughout the process.

Q. How much does it cost?

A. The Guarantee is generally cheaper for all concerned. Indeed, the fee (4.99% for a 1 year term) is often cheaper than borrowing off the High Street or indeed the cost of lost interest on your savings.

Q. Might it encourage people to get into debt?

A. No, this is just allowing people to secure a property without having to realise their cash initially.

Q. Do you check that applicants are creditworthy?

A. The qualifying process is designed to ensure that applicants are creditworthy and sound, although the Guarantee only guarantees the deposit amount not the full purchase price.

Q. How do you apply for one?

A. The XBond Company will handle the process which is relatively painless, compared to trying to raise a deposit. Buyers may be introduced to the Guarantee by the home builder, the lender or a legal/ financial advisor. Buyers can also apply now online (www.thexbond.com) or by phone: 0845 8822888. A simpler ,faster , affordable process.

Q. Will my legal or financial advisor be able to arrange a Zurich Property Deposit Guarantee?

A. Yes, it’s a simple, fast, smooth and affordable process and an increasingly routine one for both advisors and developers. The XBond Company can provide sales packs for your solicitor, financial advisor, developer or vendor.

Q. Is the Zurich Property Deposit Guarantee transferable?

A. No. The Guarantee will be issued based on the personal credit standing of the potential buyer against a specific property purchase.

Q. What length of time does it remain valid for?

A. The Zurich Property Deposit Guarantee can be valid for any period between 6 months and two years, however, longer terms are possible, subject to approval.

Q. Can the expiry date of The Zurich Property Deposit Guarantee be amended?

A. Yes, subject to payment of an additional premium.

Q. Can you apply for more than one Guarantee at the same time?

A. Yes, but each application would be assessed and you would need to have sufficient funds to be able to pay for all the properties in full at completion. The XBond Company can process this for the customer.

Q. Are there risks attached?

A .The Guarantee is secured by Zurich Bank, part of the Zurich Financial Services group, one of the world’s leading global financial services groups. The Bank is regulated by both the Irish regulator and the FSA in the UK which includes assessment of its financial strength to offer such products. The group has a strong financial rating which means that market analysts believe they are a safe and secure company to do business with.

Q. Could I use it to purchase a property overseas?

A. Not at present but we anticipate it will be available for overseas purchases by the end of the year The XBond Company can provide more details.