Rent guarantee or bond scheme
Most schemes work by providing a written guarantee to your landlord to cover any losses due to unpaid rent or damage. No money actually changes hands.
When your tenancy ends, your landlord can ask the scheme-provider to pay for damage you caused or rent you didn’t pay. You will then normally be asked to repay the money to the scheme.
Your landlord doesn’t have to register any guarantee with a tenancy deposit scheme.
Rent deposit scheme
Some schemes may offer loans for you to pay over to the landlord as a deposit. Usually, the scheme lends you the money in advance and you pay it back over a period of time from your wages or benefits. If there are no problems, you should get your deposit back at the end of your tenancy.
If you have an assured shorthold tenancy, the deposit you pay from the loan must be protected by a tenancy deposit protection scheme.