Bid and buy at auction with an Exchange Bond

Property buying at auction is being made simpler and more secure with the introduction of the Exchange Bond.

The Exchange Bond makes its auction debut at the Merseyside Property Auctions (MPA) in Liverpool at the Marriott Hotel, Speke on 25 September.

The Exchange Bond removes the buyers' need to write out a large cheque at the auction. Instead, the buyer is able to retain their funds until completion in return for a non-refundable application fee of £125 and a small premium of up to £375 - considerably less than the cost of the traditional deposit normally required.

Frank Speight, joint chief executive officer of ExCo, explains: "The Exchange Bond simplifies the house-buying process. It makes it financially viable for more people - from first time buyers who would not otherwise have been able to get on to the property ladder, to property investors expanding their portfolios - without releasing equity from existing investments. Already used extensively in the residential property market, the Exchange Bond benefits regular property auction buyers and newcomers to this section of the property world."

Kate Hughes, Managing Director from Merseyside Property Auctions, agrees: "We expect the Exchange Bond to be well-received by our regular buyers, for whom it allows financial flexibility, and by our vendors as it provides greater security. We hope that the removal of the requirement to provide an often substantial cash deposit in the auction room by using an Exchange Bond instead will attract a wider range of buyers to our property auctions."

Buyers choosing to use an Exchange Bond at this auction should check with MPA that the vendor of the property that you are interested in purchasing will accept an Exchange Bond in lieu of a cash deposit. Once this has been confirmed, contact ExCo on: 01371 877200 to make an application.

The Exchange Bond is issued and underwritten by ExCo which is authorised and regulated by the Financial Services Authority. ExCo has partnership agreements with more than 250 well-established and respected housebuilders, including Crosby Lend Lease, Taylor Wimpey, McInerney, Countryside Properties, Higgins Homes and Gladedale Home Counties.

For further information about the Exchange Bond visit exchangebond.com/auction