Lower arrears. Fewer evictions

Community finance providers are good news for tenants.

NestEgg helps tenants avoid getting into arrears.

By accessing affordable credit, tenants are less likely to spend money servicing high cost interest payments or use your rent as an interest free loan.

 

 

This means lower arrears and fewer evictions

Inclusive lending, lower arrears

NestEgg opens up access to affordable credit, helping tenants avoid high cost lenders and landlords cut arrears. 

NestEgg makes it easier to find and apply to credit unions. By doing so, more tenants can benefit from access to fairer credit and safe savings during difficult economic times.

Analysis by Citizens Advice found 62% of their debt advice clients, who owed money to doorstep lenders, were in social housing.

Financial Conduct Authority data indicates that 37% of all high-cost short term loans are made to renters.

Worse still, almost half of all referrals to the Illegal Money Lending Team lived in social housing.

The free-to-use platform filters eligibility for loans. As a result, the options available for people on lower incomes are increased.

Consequently, potential borrowers can see if they meet a lender’s criteria to be accepted for a loan. Next, an application can then be submitted with just one click.

Importantly, if declined for a loan, NestEgg provides bespoke tips and advice to help the applicant get accepted next time.

NestEgg platform

Don't take our word for it...

I became a member of the credit union in 2019 and went to see them because I was in rent arrears. In fact, I owed six months’ rent because I found it really confusing not knowing whether to apply for Universal Credit or Housing Benefit. Because of this, my claim was refused and I may have been evicted.

After borrowing some money to clear arrears ahead of my claim coming through, I can honestly say this was the best experience of a financial business I’ve ever had in my life.  

Nichola, Member of Central Liverpool Credit Union

 

Borrow less, save more

Of course, savings play an important role.

Although the Financial Conduct Authority found that 13% of households had no savings at all, this leapt to 80% amongst social tenants and 40% amongst private renters.

Furthermore, three quarters of people borrowing from high cost lenders had no savings.

Therefore, there’s a clear link between having no savings and using higher cost credit.

Credit unions provide loans on the condition that their members save when they repay their loan.

Despite living in the top 20% most deprived areas, on average credit union members have over £500 in savings.

  • After 5 years, members have typically saved 59p for every £1 borrowed

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With 1 in 10 renters having arrears, the cost of an eviction estimated at £24,000 and the cost of living crisis biting, NestEgg’s platform couldn’t have come at a better time.

This is a great opportunity to support tenants, with clear benefits for landlords.

 

 

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