Jamie Campbell
2 years ago - 4 minute read
At Fronted, we’re helping renters move and bringing decades of financial experience to renters. Money can be an uncomfortable topic, but it doesn’t have to be.
This section we’ll cover rental deposit alternatives but click any of the links to go to:
Part 1: How much money renters need to move? (Click the link to jump to this section)
Part 2: What are the alternatives to rental deposits? (Keep reading)
Part 3: How much should you spend on rent? (Click the link to jump to this section)
Let’s get into it.
To spread the upfront costs of moving, you may use a deposit alternative. At Fronted, we’re a bit of an expert on deposits and we believe that you should know all your choices. That’s why I’ve put together a comparison guide to make your choice easier.
These schemes are also known as “deposit-free”, “zero deposit” or “deposit replacement” insurance policies.
How it works:
Before you decide to use a deposit alternative, there are a few things to double-check:
Councils and charities are known to pay the rent deposit for tenants who meet their requirements. Some schemes may ask for an external guarantor.
How it works:
Tenants may need to be on housing benefits or meet specific financial requirements. These services only exist to help the most vulnerable people.
Instead of paying a regular deposit all at once, renters can pay it over 12 months with a rent deposit loan. The tenant applies for their deposit to be paid by a company and they pay it back over 12 months with interest. Full disclosure: this is what we do with the Fronted Deposit*.
How it works:
Before you decide on using a tenancy deposit loan, there are a few things to double check:
Here’s a comparison of total costs for a single deposit from the main deposit option providers, and using the average rental costs in both London and across the UK.
Check if you can get a Fronted Deposit you can see if you prequalify here.
Or head to part 3 of the Money Guide for renters where we break down how much you should spend on rent.
*Representative example: Amount of credit: £1,100. Term: 12 months. Repayments: 11 monthly payments of £97.26 and one final payment of £97.24. Total amount payable: £1,176.10. Representative APR 12.50%. No fees.
Jamie Campbell
2 years ago - 4 minute read
Fronted is a trading name of Fronted Holding Ltd. We are registered in England and Wales (Company No.12278750), registered office address is Fronted, The Fisheries, 1 Mentmore Terrace, London, E8 3PN. Fronted Loans Ltd (Company No.12307305) is authorised and regulated by the Financial Conduct Authority under a Consumer Credit Licence (FCA No. 933316). Fronted Ltd (Company No.12304059) is authorised and regulated by the Financial Conduct Authority under a Broker Licence (FCA No. 933317).
Fronted Loans Ltd and Fronted Ltd is a wholly owned subsidiary of Fronted Holding Ltd. We are part of the FCA regulatory sandbox - Cohort 6. The regulatory sandbox allows firms to test innovative offerings in a live environment. More information on the FCA's regulatory sandbox can be found here.
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