Property available without the deposit burden

Due for completion in mid-August, the properties at the new Warwick Court development at Earlsdon, Coventry, are now available to buy without the cash deposit hurdle. Against the background of inflationary pressures in the UK, local developer Cassidy Group has chosen to sell its 52 apartments with an Exchange Bond in place of the cash deposit traditionally required at exchange of contracts.

John Hannon, the development Manager of Cassidy Group, explains:

"In the present economic climate, buyers are naturally more wary of parting with their money and the Exchange Bond is an effective tool for removing their concern. Anything that attracts more sales is of interest to us. However, the Exchange Bond offers benefits for all parties in the property-buying process. For buyers, it removes the burden of producing the often substantial cash deposit required to secure a property at exchange of contracts. For housebuilders, the Exchange Bond also guarantees the bonded deposit amount in case the buyer defaults and fails to complete the purchase."

Created initially for the UK and Irish property market, the innovative Exchange Bond product has been tried, tested and approved by many leading developers, including Taylor Wimpey, Crosby Lend Lease and Higgins Homes. It is also being adopted by a growing list of developers abroad.

Frank Speight, joint CEO of Exchange Insurance Company (ExCo) - the company which developed and underwrites the Exchange Bond - comments:

"With the rising cost of living, it is important for consumers to look for better ways of managing their cash. The Exchange Bond is the perfect option for property buyers looking for more financial flexibility. Particularly with new build property, it delays the need to liquidate existing assets for investors and allows time for first time buyers to save for their deposit, when the full purchase price of the property will need to be provided."

For more information on the Exchange Bond, log on to Exchangebond.com.