Landlord Finance Costs and Fees
A Factored rent advance carries a single transparent fee agreed in writing before the landlord signs. There are no legal fees, no valuation fees, no arrangement fees, no broker fees and no early settlement charges, and the advance of £1,000 to £75,000 is funded within 24 hours.
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What landlords pay
Factored quotes one figure covering the whole arrangement. The landlord sees the lump sum they will receive and the total amount of rent being purchased before any agreement is signed.
Settling early reduces the cost; Factored applies a discount rather than a penalty.
The fees other routes add
- Valuation fee: £300 to £1,000 on secured lending.
- Legal fees: £500 to £1,500, sometimes for both sides.
- Arrangement or product fee: typically 1% to 2% of the facility.
- Broker fee: often 1% on bridging and specialist cases.
- Early repayment charge: 1% to 5% of the balance within a fixed term.
- Exit fee on bridging finance: commonly one month's interest.
The cost of doing nothing
A rental property that cannot be let because works are unfunded loses a full month's rent for every month it stands empty, and a missed purchase deadline can cost the landlord the deal entirely. These costs rarely appear in a rate comparison but usually dominate the arithmetic.
Fee comparison across landlord finance options
| Fee | Factored rent advance | Secured lending |
|---|---|---|
| Valuation | £0 | £300 to £1,000 |
| Legal | £0 | £500 to £1,500 |
| Arrangement | £0 | 1% to 2% |
| Broker | £0 | Up to 1% |
| Early settlement | £0, discount applied | 1% to 5% |
| Interest | None, single agreed fee | Charged monthly or annually |
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
How much does a rent advance cost?
Factored agrees a single fee with the landlord before signing, shown as the lump sum received against the total rent purchased, with no other charges.
Are there hidden fees?
No. A Factored rent advance has no legal fees, no valuation fees, no arrangement fees, no broker fees and no exit fees.
Is there a penalty for settling early?
No. Factored applies a discount for early settlement rather than an early repayment charge.
What is the maximum term?
Factored purchases up to 12 months of contracted rental income, so the arrangement runs for a maximum of 12 months.
Do I pay anything to apply?
No. Applying to Factored is free and involves a soft search only, with no obligation to proceed.
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.