Affordable housing purchase made easy with the Exchange Bond

The South Yorkshire Housing Association (SYHA) is spearheading a move to enable people to buy their new home without the need for a cash deposit.

From 1 February 2008 the SYHA will be accepting an Exchange Bond on a wide selection of their properties instead of the traditional cash deposit normally required to secure a home.

The SYHA was established in 1972 to help those with social and financial needs to buy a home. It quickly identified the benefits of the Exchange Bond after learning about this alternative to the 5-10 per cent deposit typically required to secure a property.

Margaret Walker, Sales & Marketing Manager at the SYHA, says: “Relying heavily on support from local councils and other bodies, we run a number of schemes that are designed to make housing accessible to those needing assistance. While our properties that are available to buy are made as financially viable as possible, we still have to sell homes according to the usual legal process in the UK and this involves a cash deposit at exchange of contracts.

“This cash sum can create a real barrier for some buyers – especially the elderly looking to purchase a house through our “Extra Care Housing” scheme. In this case, the buyer can often only produce the money required once an existing home is sold and equity in that property has been released. The Exchange Bond removes the need to provide the cash deposit up front and is a life-line for people in this position.

“Innovation and creativity is at the heart of what we do at SYHA, in meeting the increasingly acute housing challenge. We are constantly seeking new ways to make homes more accessible and affordable for our customers. The introduction of the Exchange Bond is a good illustration of that policy enabling us to offer another financial tool that helps us to fulfil our mission.”

Frank Speight, joint chief executive officer of Exchange Insurance Company – the company which provides the Exchange Bond - comments:

“The Exchange Bond is designed not only to simplify the house-buying process but also to make it 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. I am very pleased that SYHA is leading the way in enabling people in affordable housing schemes to benefit from the Exchange Bond.”

Authorised and regulated by the Financial Services Authority, ExCo has also linked up with over 200 well-established and respected housebuilders, including Crosby Lend Lease, Taylor Wimpey, McInerney, Countryside Properties, Higgins Homes and Gladedale Home Counties.