New bond to substitute property deposit

The Deposit Doctor Bond can be used for all or part of the deposit required, available for up to 20% of the purchase price (up to £2,000,000). Bonds will be offered for terms of up to 2 years at a premium of 3% to 3.5% per annum, and more bespoke services are available on request.

The Deposit Doctor says this type of product has been successfully deployed in Australia and New Zealand for the past 20 years, adding that buying off plan requires an outlay of capital, with the prospect of completion often a long way off.

The bond is aimed at those looking to downsize or move to a retirement property, as well as potential buyers involved in a long or complex chain.

Simon Heilpern, Co-Founder, Deposit Doctor, said: “Buying a home in today’s climate where there are more pitfalls than ever, is no easy task. It is a real financial commitment and daunting experience, with different costs involved from the deposit, mortgage fees and stamp duty through to survey and legal fees. The Deposit Doctor Bond means both buyers and sellers can move along the property ladder in a quick and smooth manner, whilst freeing up their cash flow. The Deposit Doctor bond is a safe secure and better way of arranging a property deposit.”

Bonny Hedderly, Managing Director, added: “Handing over thousands of pounds for the deposit, months before you actually complete, can for many people be the barrier which stops them from getting on the housing ladder in the first place. We hope that the launch of the Deposit Doctor Bond will help homebuyers reduce some of the stress of buying a home and keep the property market moving. We anticipate Deposit Doctor Bonds becoming the market standard way of paying property deposits in the UK.”