What is an Exchange Bond?

• An Exchange Bond is an alternative to making a cash payment when committing to buy a new property.

• An Exchange Bond is an "insurance policy" which guarantees the full deposit amount to the Seller if the Buyer fails to complete the purchase having exchanged contracts.

• The Buyer of the property is still liable for the full deposit amount if he fails to complete, but the debt is owed to the Exchange Insurance Company ("ExCo") rather than the Developer.

• The Buyer pays a premium to ExCo for the Bond and the "beneficiary" of the policy (in the event of a default) is the Developer.

   

Get an Exchange Bond in 5 easy steps

1.  Identify the Property you want to buy and check with Investroute that an Exchange Bond can be used for your chosen development.

2.  Send in a completed application form (contact us for a form), pay an £85 application fee, and get a quote.

3.  The Exchange Bond company will conduct a credit review and confirm premium within 48 hours, and send your customer agreement.

4.  You and your solicitor both sign the customer agreement and return it to us with the premium.

5. You receive an Exchange Bond certificate ready for use at exchange of contracts