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a year ago - 3 minute read
If you don’t know, renters in the UK face a sticky situation every time they move. When you rent, you have to pay a deposit upfront to your landlord. Assuming you don’t cause any damage, you get it back when you leave.
But therein lies the problem. You only get your deposit back when you leave. That means that when you’re moving to a new rental, you have to pay your new landlord a deposit before you get your old one back.
Dubbed the double deposit, this is a huge problem for renters across the UK.
This is where Fronted’s Lifetime Deposit comes into play. Stick with us and we’ll explain what a Lifetime Deposit is and what the pros are for renters.
A Lifetime Deposit is a relatively new concept first introduced back in 2019. Some people also call it ‘deposit passporting’.
With a Lifetime Deposit, your deposit moves home with you. Your old deposit is used to help pay for your next one and, if needed, the difference is settled with a top-up. When you want to move, both your landlords get what they want and you don’t have to do anything. The overall goal is that renters don’t have to save up and fork out for the entire new deposit, just because the old landlord is holding onto their money for now.
You can learn more about how Lifetime Deposits work here.
Since the upfront costs of deposits can be a barrier to moving, many people just don’t move. Like, ever.
With a Lifetime Deposit, this isn’t an issue. Money is paid to your new landlord, without taking it away from your current landlord. So, you can actually move to a new rental. Result!
Assuming you haven’t damaged anything during your stay, the money your current landlord has is technically yours. But it also technically isn’t, as you can’t access it yet.
Normally, this means you have to save up all over again for your new deposit. With a Lifetime Deposit, you don’t need to do that. You only need to spend money if your new deposit is higher than the last or if your current landlord keeps some dollar for damages.
Since Lifetime Deposits are to be offered either through a financial bridging authority or a deposit builder ISA (according to the NRLA), it’s another pro for renters.
Our Lifetime Deposit has 0% interest if you pay the money back within three months. Others offer long-term repayment plans plus interest. So, if you don’t get your full deposit back, you can pay for your new deposit in your own time.
Have you missed out on dinner with friends or a big holiday because of double deposits?
Moving is more affordable with a Lifetime Deposit. You can say goodbye to scrimping in the months leading up to your move and use your savings for something better!
When you move to a new place, you have to pay for a lot of stuff, not just the deposit. You normally have to fund the first month’s rent in advance (as well as your old rent), maybe a removal company and sometimes new furniture.
A Lifetime Deposit can give you peace of mind and take away one of those big things you might be worried about. In the UK, a deposit is £1,300 on average – that is a pretty big thing you don’t need to worry about.
At Fronted, we offer renters a Lifetime Deposit solution that has been carefully designed to make moving easier. We work with deposit protection schemes and will help you afford your landlord deposit – both of them!
Learn more about how it works or join our waitlist to be one of the first to use the lifetime deposit when it launches.
If you're a renter, we've got your back. This corner of the Fronted site is loaded with everything from moving tips, Lifetime Deposits, and anything you need to make renting, or moving, a breeze.
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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