I am pleased to share that we have raised over £20m of debt and equity led by Fasanara Capital.
We will use the funds to develop a stand-alone app for Fronted members to download. Within the app, renters will be able to use Fronted’s ‘lifetime deposit’ - interest-free moving credit to remove the largest barrier to moving: the cost.
It’s a deposit that moves home with you. So if you are someone who needs to pay a second deposit before receiving the old one from their previous tenancy, go here and sign up. It works by securing the return of a renter’s old deposit to Fronted and financing the new deposit in full. Users will have 10 weeks to pay off the bridging finance. All – or a portion of which – will be made up from the return of the old deposit.
We think asking renters to come up with another five weeks rent when they already have money protected is ludicrous. Renters should be allowed to pay a new deposit with the one they already have.
When a renter moves between properties, there is almost always the need to pay two deposits. The landlord who owns the ‘moving in property’ wants a deposit paid as soon as possible to reduce the risk of an empty home. The ‘exiting property’ landlord wants the money to be available for any deductions after the tenant moves out. On average, deposits are £1,300, and renters have a double deposit overlap of 35 days.
I am delighted that Fasanara has joined us on our mission to fix rental deposits. Francesco Filia, CEO of Fasanara Capital, had some nice things to say about us:
“The innovation that Fronted brings to the rental market can benefit all participants from renter to agent to landlord, helping remove a key friction and reducing risk. We are delighted to back yet another innovative fintech that is solving a real pain point for consumers.”
The Fronted app and the lifetime deposit will launch later this year with a small testing cohort. It will roll out across England and Wales in 2022.
How Fronted Can Help
Are you struggling to fund your new tenancy deposit when moving rental? If your money is tied up in an old deposit, Fronted’s Lifetime Deposit Scheme can help make it easier and more affordable for you to move around. Check out our Lifetime Deposit to learn more about how we can help make moving rental more affordable or join our waitlist to be one of the first to use our services when they launch.