The new platform aims to help generation rent with deposits via Open Banking.
Fronted will, after an initial phase, expand to offer services “that begins when a customer thinks about moving up until they drop off their keys,” according to a media release.
The service will start out - next year - by paying people’s rental deposits. Customers will qualify by linking their bank account to Fronted using Open Banking, the secure way for people to share their banking data, then Fronted will send deposits directly to estate agents. They say that novel techniques and new technology like these help them lend money at very low rates.
“If you can’t pay the months rent upfront and the deposit then you can’t move for a new job, you’re stuck living with an ex or with your parents… these costs stop people moving places,” said Jamie Campbell, CEO of Fronted.
“We are lending this money to increase social mobility. No fees. No early repayment penalties and the option to reduce monthly payments with a ‘holiday mode’ feature.”
“Renting sucks.“It’s expensive, stressful and, at times, makes you feel like a second class citizen. Now that homeownership is even more out of reach we need to rebalance the equation and give renters more control. The first thing we are fixing is the high upfront cost of renting which can cause so many social issues.”