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Make buying at auction more secure

Catherine Deshayes

Want to buy a property at auction but don't like the idea of writing out a large cheque on the spot for payment? A new product allows buyers to retain their funds until completion.

Buying a property at auction can be exhilarating but nervewracking. Handing over a large sum of money in one go to secure the property may put off some buyers.

An Exchange Bond is a financial guarantee that replaces the cash deposit usually paid to secure a property at exchange of contracts.

The guarantee allows the buyer to retain their funds until completion in return for a non-refundable application fee of £125 and a small premium of up to £375, which is considerably less than the cost of the traditional deposit normally required.  

It is already used extensively in the residential property market and can benefit regular property auction buyers and newcomers.

Frank Speight, Joint Chief Executive Officer of ExCo, which underwrites Exchange Bond, said, "It simplifies the house-buying process and 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," Mr Speight added.

Contact: www.exchangebond.com/auction

To browse upcoming auctions and auction property for sale, visit auctions.themovechannel.com/