Paragon Advance has launched a new insurance product which will free tenants from having to raise a deposit before moving into rented property.

No Deposit enables landlords to let accommodation without asking for any deposit. An insurance policy can be purchased for a fixed £145 fee, to provide protection against loss or damage to the property caused by the tenant.

The scheme is underwritten by DAS Legal Expenses Insurance Company, who will negotiate on behalf of the landlord to recover damages up to the value of one month’s rent, and provide up to £50,000 in legal costs if necessary.

The policy aims to recover any outstanding sum within 14 days of a claim being accepted, allowing the landlord to make speedy repairs and re-let the property as quickly as possible.

Bryn Cole, managing director of Paragon Advance, said: “No Deposit offers landlords peace of mind that they will be able to recover the cost of any dilapidation or damage to their property, without requiring the tenant to tie up their money for the duration of the tenancy.”

www.Mortgage-Shop.co.uk Impartial, Independent, Open Market Mortgage Information Online.