A new product has been launched by Zero Deposit that allows tenants to unlock their cash deposit and replace it with a Zero Deposit Guarantee.
Tenants who purchase a Zero Deposit Guarantee mid-tenancy or at renewal can release their existing deposit early and instead provide their landlord with an FCA regulated guarantee providing enhanced protection.
Zero Deposit’s tenant’s deposit replacement product is rapidly becoming a major part of renting for letting agents, landlords and tenants across the UK.
A number of letting agents are now signed up to Zero Deposit’s FCA-regulated deposit replacement product, designed to reduce financial pressures on renters, while also offering greater security to landlords.
The insurance policy is underwritten by Great Lakes Insurance SE, part of the Munich Re Group, which the tenant acquires for a one off payment at the equivalent of one week’s rent, no matter the length of the tenancy, plus an annual admin fee of £26.
Under the terms of the scheme, tenants remain accountable for any damage or unpaid rents, with any disputes over claims by the landlord handled by the Tenancy Deposit Scheme (TDS), which has an exclusive partnership with Zero Deposit.
Jon Notley, co-founder and CEO of Zero Deposit, commented: “Zero Deposit is already changing the way people rent and deposit unlocking is the next step of our journey. Our ambition is to help tenants overcome the challenges of affordability by providing them with the choice to release the cash they have tied up in existing deposits.
“Landlords benefit from the extra protection our product offers over a cash deposit, with everyone protected by the safeguards that come with an FCA regulated product and the associated Financial Ombudsman Service and Financial Services Compensation Scheme.”