Loan renewal secures a full 20-year term, not just an extension

A dentist’s five-year commitment period was ending, with no guarantee their lender’s renewal terms would match the original deal. We took the renewal to the open market alongside the existing lender rather than assuming it was the only option. The existing lender came back with the strongest offer, a full 20-year term at improved rates.

The Situation

A dentist we’d placed finance for five years earlier came back when their initial commitment period was approaching its end. Some lenders only commit for a fixed number of years rather than the full loan term, which leaves borrowers facing a renegotiation at exactly the point they’re busiest actually running their practice, with no guarantee the terms on offer will be as good as the ones they started with five years earlier. This client wanted clarity on their real options before that window closed and they were left negotiating from a position of uncertainty.

What We Did

We reviewed how the practice had performed since the original loan was placed, since a strong five-year track record is genuinely useful leverage in a renewal conversation and something worth presenting properly rather than assuming a lender would simply extend on the same basis. We took the renewal to the open market alongside the client’s existing lender rather than assuming the existing lender was the only option available. Going through a broker signals to lenders that the deal is competitive, which often produces materially better rates and terms than a direct, one-to-one renewal conversation would, since the lender knows other offers are genuinely being considered.

Several lenders showed genuine interest once the practice’s performance was presented properly. The existing lender ultimately came back with the strongest offer, which also had the added benefit of avoiding the cost and disruption of transferring security to a new lender.

The Result

The client’s existing lender agreed a new deal for the full remaining 20-year term, on improved terms compared to the original commitment period. No security transfer was needed, no disruption to the day-to-day running of the practice, and the client had independent confirmation, from having genuinely tested the market, that they were getting a competitive deal rather than just accepting whatever their existing lender proposed by default.

The takeaway for anyone approaching the end of a commitment period rather than a full loan term: don’t assume your existing lender’s renewal offer is automatically the best available, even if you end up staying with them in the end. Testing the market first is what turns “staying put” into a confirmed good decision rather than an untested assumption.

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