The firms’ offering allows for the cash to be used elsewhere in the property buying process, whether for other costs for residential purchasers or for a buy-to-let landlord needing loose capital as part of a portfolio.
John Smith, sales and marketing director at GHL Group, said: “Our aim is to ensure that our distribution not only has access to a wide and appropriate choice of mortgages for their clients, but also that they have extra tools to hand that may give them a competitive edge and add real value to their service. Keeping abreast of this new opportunity and positioning the product in the right manner will undoubtedly lead to more business and I believe the Exchange Bond will be an important addition to our intermediaries.”
The bond, which can be used on new build and existing housing, is repaid at completion, meaning if the purchase falls through, the buyer still has the cash available for another offer.
Mike Fitzgerald, sales director at Brentchase Financial Services, commented: “Any new innovation that helps meet the costs of buying has to be welcomed. If you look at something like Stamp Duty, the amount you’re talking about is incredible, especially for first-time buyers. Anything which helps spread costs has to be a good thing.”
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