A new £8 million Welsh Government Tenancy Saver Loan scheme to help tenants struggling with rent arrears due to coronavirus has launched.
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; it will be open until March 31st 2021.
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.
Ogmore MS Huw Irranca-Davies welcomed the scheme saying: “This low interest loan scheme will help provide financial assistance for both tenants and landlords in Ogmore who are struggling with their rent due to coronavirus.
It’s great to see involvement from our local Bridgend Lifesavers Credit Union, which I and my family have been members for many years and also to see the way Credit Unions and the co-operative movement is stepping up to the mark with Welsh Government support to help private tenants struggling to pay the bills.
This is the difference we can make in Wales, putting in wider support to keep the wolves – and the loan sharks – from the door in these really difficult times. It will also help towards ensuring no-one is made homeless as a result of the pandemic.”
- Applicants can contact Credit Unions directly or enquire here: https://creditunionsofwales.co.uk/tsl/
- Further support and advice can be found on the Welsh Government’s Coronavirus Housing Advice pages: gov.wales/coronavirus-housing-advice