Investment loan refinancing allows you to renegotiate your existing investment loan for a better deal or rate with another lender. Doing this may allow you to have better loan features, a lower interest rate and change your type of loan repayment. As the equity in your property grows, this may allow you to seek additional finance for future investment, this could be for property, shares or other investment strategies.
However, refinancing is not always for everyone.
You have to make sure that the benefits outweigh the costs of refinancing. Be wary of high exit costs that are associated with your existing mortgage e.g. breaking a fixed interest rate loan and discharge costs.
Things to consider when refinancing – loan interest rate and type of rate (variable or fixed rate), type of repayment (principal & interest or interest only), loan amount you need for the refinance, whether you wish to draw out equity in the property.