Wimpey to accept exchange bonds

George Wimpey is offering house buyers the opportunity to opt out of paying cash deposits by using an exchange bond designed by The Exchange Insurance Company.

The house builder is the first in the UK to use exchange bonds as financial guarantees to sellers on behalf of buyers, replacing the cash deposits normally required to secure property purchases.

Instead, buyers pay 100% of the agreed purchase price at the completion stage.

The exchange bond has been trialled over the past seven months in George Wimpey’s east London division and will now be available across its 26 operating regions.

Peter Lane, chief executive of Exchange Insurance, says: “In the trial, bonds were offered to a range of customers from independent single buyers to commercial bulk buyers, and they all found that the system worked.

“Now we are confident in launching what is the first nationwide exchange bond scheme.”

He adds: “A lot of our business goes through brokers. This is a complicated scheme and intermediaries have a relationship of trust with customers so they can explain and advise on this product.”

Kevin Belsham, sales director of George Wimpey, adds: “The introduction of the exchange bond to our marketing effort has had an immediate positive impact on our sales.

“It is proving particularly attractive to investors but is also appealing to first-time buyers, people trading up and even families who are looking to downsize.”