Monzo, Bud and Apple veterans start platform for renters.

Fronted, launching next year, will start out by paying people’s rental deposits.

Most renters, according to the 2017-18 English Housing Report*, have no savings at all. So when it comes to finding a down payment for a new place, renters either go to mum and dad, high-cost short term lenders or stay put, often with less than desirable outcomes.

“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.” Jamie Campbell shared with me, “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.”

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.

“Renting sucks” Jamie continued, “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.”

The vision for Fronted doesn’t stop at paying deposits, the team say they intend to offer services “that begin when a customer thinks about moving up until they drop off their keys.”

The founding team includes two well-known fintech heads Simon Vans-Colina previously Monzo and Jamie Campbell of Bud, they are joined by a third co-founder Anthony Mann, previously Apple and YLD.

The service will be launching early next year.