Do we need the 'exchange bond'?

The bond, says the insurance provider, can be used in place of a deposit by those who may, as yet, not have saved all the money and may have some time to wait before completion on a property purchase. By way of example, Exchange Insurance says where someone is buying a property costing £200,000 and needs to provide a 10% deposit they can, for "a small premium of £850", use the exchange bond instead. The buyer gives the seller the bond which acts as guarantee for the deposit and the buyer then has time between the exchange and completion to save the rest of the deposit. Exchange Insurance...