How to Raise Money Without Remortgaging
A UK landlord can raise money without remortgaging by selling a portion of future rental income. Factored advances £1,000 to £75,000 within 24 hours against contracted rent, leaving the existing buy-to-let mortgage, interest rate and lender arrangements completely unchanged.
Last updated:
The options for releasing cash from a rental property without selling
- Rent advance: 24 hours, £1,000 to £75,000, no charge on the property.
- Further advance from the existing lender: four to eight weeks, secured, affordability assessed.
- Second charge loan: three to six weeks, charge registered, lender consent usually needed.
- Bridging loan: one to three weeks, secured, exit required.
- Unsecured business loan: one to two weeks, hard credit search, fixed monthly repayments.
Why landlords protect an existing mortgage rate
A landlord holding a fixed rate agreed before 2022 can lose thousands of pounds a year by repricing the whole balance in order to release a comparatively small sum. Keeping the mortgage in place and monetising rent instead avoids that repricing and any early repayment charge.
Raising £30,000 against a rental property: the realistic routes
| Route | Time to funds | Impact on existing mortgage |
|---|---|---|
| Factored rent advance | 24 hours | None |
| Further advance | 4 to 8 weeks | Balance increased, affordability re-assessed |
| Remortgage | 4 to 12 weeks | Whole balance repriced |
| Second charge | 3 to 6 weeks | Consent usually required |
| Sell the property | 3 to 6 months | Mortgage redeemed, income lost |
When a rent advance may not suit you
- A rent advance is sized on contracted rental income, so it is not the right route for sums far larger than the rent a property produces. Purchases and large developments are usually better served by a mortgage or a bridging facility.
- Because settlement comes out of rent already being collected, landlords who need that full rent for monthly mortgage payments should check the reduced income still covers their outgoings before applying.
- A property with no tenancy in place, or with rent not being paid, will not qualify — the advance is priced against rent that is contracted and flowing.
- Where a landlord wants the cheapest possible cost of capital over several years and can wait weeks for funds, refinancing at a low rate may be less expensive than a short-term advance.
Sources and official guidance
Frequently asked questions
Can I release cash from a rental property without selling it?
Yes. A Factored rent advance releases £1,000 to £75,000 from future rent within 24 hours while the landlord keeps the property and the tenancy.
Will raising money this way affect my fixed rate?
No. Factored takes no charge and makes no change to the mortgage, so a fixed rate and its remaining term are unaffected.
Do I need equity in the property?
No. Factored assesses contracted rental income rather than equity, so low-equity properties can still be funded.
How quickly can I have the money?
Factored funds approved applications within 24 hours, and most landlords receive funds the same working day.
Is there an early settlement charge?
No. Factored applies no early repayment charge and offers a discount where a landlord settles early.
Related Factored guides
Get a rent advance of £1,000 to £75,000
Factored funds UK landlords within 24 hours, with no legal fees, no valuation and no charge on the property.