The Welsh government has opened its Tenancy Saver Loan scheme to applications.
Announced in August, it offers loans to tenants who have built up rent arrears or those who believe they will struggle to pay their rent in the coming months, and is the first of its kind in the UK.
It will run until March 31st 2021 and is backed by a fighting fund of £8 million, paying funds approved by the scheme directly to landlords or lettings agents.
The loans will be repayable over a five-year period and charge tenants an interest rate of 1% APR, and come with support and advice services ‘to help them manage their financial situation’.
Managed by Wales Council for Voluntary Action, they will be provided by seven credit unions across Wales. These will initially work with tenants to find out whether they’re eligible for the loan scheme and how much they could afford to repay, and if suitable offer them support.
“We recognise the constant pressure that the coronavirus is putting on tenants and landlords,” says Minister for Housing and Local Government, Julie James (main pic, above).
“That’s why we’re supporting a low interest loan scheme that provides financial assistance for both tenants and their landlords.”
Ann Francis of Cambrian Credit Union, which is covering the majority of counties in Wales, says: “We would stress that this is a loan scheme of last resort and not a grant, so it may be that not every applicant will receive a loan.”
NRLA chief executive Ben Beadle (left), adds: “These loans will help keep tenants who have been affected by coronavirus in their homes, while supporting landlords reliant on rental income to pay their own bills.
“We would advise every landlord with a tenant in arrears to make sure they are aware of the new scheme and advise any landlord in receipt of these payments to commit to working with their tenant to maintain the tenancy in the long term.”