Melton security deposit scheme uses interest-free loan

Local residents of Asfordby, Bottesford and Melton Mowbray who are unable to come up with a rental deposit have a potential tool at their disposal. The local council can assist with these deposits when necessary to ensure that a person has the necessary funds they need to move into a private property.

In an effort to draw potential tenants away from predatory loan companies, the Melton Borough Council has implemented an interest-free loan plan to help applicants come up with the necessary security deposits. The result is a simple yet effective method for gaining the quid necessary to satisfy the upfront deposit requirement of a landlord.

How it works

The rent deposit scheme utilises a pot of money designated for applicants who need help gaining access to a safe and affordable home. Whenever a person might otherwise become homeless if no assistance is provided, the council may approve a disbursement of the necessary funds to meet the deposit requirements of an approved rental property. It should be noted that council housing is not an approved purpose. The property must be a privately owned property.

If approved, funds can be provided to allow for a security deposit to be paid to the landlord. Tenancy of at least 6 months is the default. Multi-year terms can be approved.

How to qualify

Priority is given to those who are facing homelessness, whether or not they are currently homeless. Those who are already receiving benefit payments or are eligible to do so may also find it easier to qualify. You do not have to be receiving housing benefit to still qualify. Job seekers’ allowance and income support can strengthen an application too, but neither is required.

Prior to approval of each request, an applicant must prove that they understand their rights and responsibilities as a tenant. The home should be appropriate for their needs and well within their budget. Finally, as a borrower, the applicant should be capable of repaying the loan. Of course, the absence of  interest makes repayment substantially easier than that of any personal loan.

In order to be considered for an interest-free loan through the security deposit scheme, call the Melton Borough Council at 01664 502502 or visit the office on Burton Street in Melton Mowbray.