Another type of Crisis loan is a Loan for Rent in Advance, this is where there is a real risk to the customer’s health and safety if they do not move and secure a property.
For those that are already living a in a property then they have to show that there s a risk to them if they stay at their present accommodation, for example a violent partner, if it is deemed that there is no immediate risk to the customer, for example, they have been asked to leave in 5 weeks, then they may be asked to make a paper application rather than applying over the phone as this is generally just for those that need an urgent decision.
How do rent in advance loans work?
There is no set maximum when making a crisis loan application for help with rent in advance, as opposed to the living expenses process that has a set daily limit- however, they are still bound by the Maximum debt rule that you cannot exceed £1500.00 total outstanding to the social fund.
Another thing to take note of is that you will be asked for a copy of a tenancy agreement from your new landlord. This is a legal document that sets out how much the rent will be and what period such rent will cover, sometimes it also sets out other costs and charges, for example, deposits or admin fees.
Deposits or admin fees are not payable by the crisis loan section, and will always be turned down, so it is important that you are clear that you are applying for help with rent in advance and not anything else.
If you apply for £400 rent in advance + £150 deposit, then they will ask you if you have £150 cash to put toward the cost, if you say now then your entire application will be turned down on the basis that if they give you all they can (£400) then you still won’t get the property so the crisis loan would not get you out of crisis.