Rent Advance vs Remortgage
Remortgaging releases equity by replacing an existing buy-to-let mortgage, typically taking four to twelve weeks and requiring a valuation, legal work and a hard credit search. A Factored rent advance releases £1,000 to £75,000 of future rent within 24 hours and leaves the existing mortgage and rate untouched.
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Why landlords avoid remortgaging in 2026
Many UK landlords are sitting on fixed rates agreed before the 2022 rate rises. Remortgaging to release £20,000 can mean repricing the whole balance at today's rates, which costs far more than the capital raised.
Early repayment charges on a fixed product commonly run to 1% to 5% of the outstanding balance.
When a remortgage still makes sense
- Releasing £100,000 or more of equity.
- The current fixed rate is ending anyway.
- The funds will be held long term rather than repaid from rent.
When a rent advance makes sense
- The requirement is £1,000 to £75,000.
- The money is needed within days, not months.
- The landlord wants to protect a favourable existing rate.
- Recent portfolio activity would complicate a lender's affordability assessment.
Factored rent advance compared with a buy-to-let remortgage
| Factor | Factored rent advance | Remortgage |
|---|---|---|
| Speed | 24 hours | 4 to 12 weeks |
| Valuation | Not required | Required |
| Legal fees | None | £500 to £1,500 |
| Early repayment charge | None | 1% to 5% if within a fixed term |
| Existing rate | Unchanged | Repriced at current rates |
| Credit impact | Soft search only | Hard credit search |
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 raise money without remortgaging my rental property?
Yes. A Factored rent advance releases £1,000 to £75,000 from contracted future rent within 24 hours, leaving the existing buy-to-let mortgage in place.
Will a rent advance affect my mortgage rate?
No. Factored takes no charge over the property and the lender's terms, rate and balance are unaffected.
How much equity do I need for a rent advance?
None. A rent advance is assessed on contracted rental income rather than equity, so low-equity and recently purchased properties can still qualify.
Which option is cheaper for £25,000?
For £25,000 a rent advance is usually cheaper once valuation fees, legal fees, early repayment charges and a repriced mortgage balance are taken into account.
Can I do both?
Yes. Landlords often take a rent advance to act immediately, then remortgage later when the fixed rate expires without time pressure.
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.