A new Tenancy Saver Loan scheme to help tenants struggling with rent arrears due to coronavirus has launched.
Welsh Government has created an £8 million scheme which is the first of its kind in the UK. The Tenancy Saver Loan scheme will be open to private rented sector tenants in rent arrears and those who may also struggle to pay future months’ rent as a result of coronavirus.
Paid directly to landlords or agents, the scheme will offer 1% APR loans to be repaid over a period of up to 5 years and will provide an affordable way to cover rent arrears, or future months’ rent, reducing the risk of eviction and homelessness. Once a tenant has applied for the loan they will be able to access support and advice services to help them manage their financial situation.
Managed by Wales Council for Voluntary Action, the loans will be provided by seven Credit Unions across Wales.
The Credit Unions will firstly work with tenants to find out whether they’re eligible for the loan scheme and how much they could afford to repay. If the scheme is suitable for the tenant, then the Credit Unions will provide them with support for the duration of the loan repayment term.
More information is available on Credit Unions of Wales website. The scheme is open until 31 March 2021.
Funding has also been provided for Citizens Advice Cymru to deliver the Early Alert Scheme for rent arrears and other household debt for tenants. If you are a private tenant and struggling with rent or bills, contact Citizens Advice Cymru on 0300 330 21 77 to speak to a debt specialist.