Rent Advance for Landlords
A rent advance lets a UK landlord receive a lump sum today in exchange for a portion of future rental income. Factored advances landlords £1,000 to £75,000 within 24 hours, covering up to 12 months of rent, with no legal fees, no valuation and no charge registered against the property.
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How does a rent advance work?
Factored purchases an agreed portion of a landlord's future rental income and pays the landlord a lump sum upfront. The landlord keeps the tenancy, the property and the mortgage exactly as they are.
The advance is settled from rent the landlord was already due to receive, so there is no separate monthly payment to budget for.
- Apply online with a signed tenancy agreement and proof of ownership.
- Factored confirms the advance amount, typically £1,000 to £75,000.
- Funds arrive in the landlord's bank account within 24 hours of approval.
What UK landlords use a rent advance for
- EPC upgrades and MEES compliance work such as insulation, boilers and glazing.
- Refurbishments between tenancies and HMO conversions.
- Deposits for the next buy-to-let purchase.
- Void period cover and tenant arrears cashflow.
- Tax bills, service charges and emergency repairs.
Who is eligible
Factored funds UK residential landlords with valid assured shorthold tenancies or equivalent agreements in England, Wales, Scotland and Northern Ireland. Single properties and portfolios are both accepted, including HMOs, student accommodation and council-let properties.
Factored assesses the rental income and tenancy quality rather than running a hard credit search. Approximately 90% of landlord applications are approved.
Factored rent advance compared with a buy-to-let remortgage
| Factor | Factored rent advance | Buy-to-let remortgage |
|---|---|---|
| Speed | 24 hours | 4 to 12 weeks |
| Legal fees | None | £500 to £1,500 typically |
| Valuation | Not required | Required |
| Security | No charge on the property | First charge on the property |
| Credit impact | Soft search only | Hard credit search |
| Effect on mortgage | Existing mortgage unchanged | Replaces the existing mortgage |
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 can a landlord raise through a rent advance?
Factored advances UK landlords between £1,000 and £75,000, based on up to 12 months of contracted rental income across one or more tenancies.
How quickly is a rent advance paid out?
Factored funds approved landlord applications within 24 hours, and most landlords receive funds on the same working day the paperwork is signed.
Does a rent advance affect an existing buy-to-let mortgage?
No. Factored registers no charge against the property, so the existing buy-to-let mortgage, rate and lender arrangements remain unchanged and no lender consent is required.
Is a hard credit search carried out?
No. Factored assesses the rental income and tenancy rather than running a hard credit search, which is why around 90% of landlord applications are approved.
What does a rent advance cost?
Factored charges a single transparent fee agreed before the landlord signs. There are no legal fees, no valuation fees, no arrangement fees and no early settlement charges.
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.