Building conglomerate George Wimpey is offering home buyers a financial product which lets them avoid saving to pay a deposit on their new home.
The product, called an Exchange Bond, was developed by Exchange Insurance and has been trialled successfully by the builder in its East London division, it says.
Instead of providing a cash deposit on exchanging contracts, buyers using the Exchange Bond pay the full purchase price of the property on completion.
George Wimpey say they developed the product after their research found that “the cash needed at exchange often restricts people when buying property”.
Kevin Belsham, sales director of George Wimpey, added that the product was “proving particularly attractive to investors, but is equally appealing to first time buyers, those trading up or even those families downsizing.”
In related news, figures released recently by the Council of Mortgage Lenders (CML) show that house prices continue to grow steadily, despite a recent dip.
Further, £26.8 billion in mortgages was lent out in January – a record for the month according to the CML.
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