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One regional credit union has made renting a new home possible for tenants who cannot come up with advance rent for the first four to six weeks. Eastern Savings and Loans makes interest-free loans to those who cannot afford to make the rent payment in addition to the deposit.

This Rent in Advance Scheme is actually made possible by the Ipswich Borough Council. The Housing Options specialists make direct referrals on behalf of council residents who cannot meet the cash move-in requirements on their own.

This is not a grant programme, and the funds must be repaid in full. However, the fact that there are zero finance charges on the loan make this a very attractive offer.

The scheme is meant to assist people in several different scenarios.

• Tenants who cannot afford their current rent may opt to move to a cheaper home. Often times they cannot afford the upfront costs of the move and stay where they are overpaying on rent. This scheme allows for them to make a move and benefit from the cheaper rent payments.
• Those who are homeless often have the greatest barriers to entry. Many are grossly overpaying on rent through bed and breakfasts because they cannot come up with the cash. While they may have given up on getting approved for a loan, a referral from Council to the credit union can assist with loan approval.
• Some applicants have barely enough to cover advance rent or utility deposits and moving costs, but not both. This loan can help them make the move without emptying their bank account.

This needs-based scheme is not available to everyone. Those with the means to afford rent will be expected to use their own savings. The purpose is to facilitate rent application approvals by helping prospective tenants come up with the required funds to obtain private housing.

Council’s Housing Options team will assess each household to determine their capabilities and needs. If it is determined that the interest-free loan is a recommended option, they will provide the necessary referral to Eastern Savings and Loans.

Enquiries on the credit unions products may be directed to 01473 690690, while those who would like to apply for the interest-free loan should first contact the Housing Options team at 01473 433033.

Deposit Guarantees

While the interest-free loan can provide a way to cover the initial payment, it does not cover the rent deposit. Whether a client is referred to Eastern Savings and Loan or not, they may still be able to take advantage of the Deposit Bond Scheme.

This allows them to skip the rent deposit requirement. The landlord will rely on Council to cover any damages or arrears up to the limits of the guarantee. If approved by Council, an applicant could move into a new home with a guarantee covering the deposit and an interest-free loan covering the advance rent payment.