Refinancing Explained: What Dentists Need to Know

Hi everyone,

In my last email, I shared how the Bank of England’s latest rate cut could mean savings for your practice. But the big question many dentists ask me is: “How do I know if refinancing is right for me?”

Let’s break it down.

What Refinancing Actually Means

Refinancing is simply replacing your current loan with a new one that has better terms - usually a lower interest rate, a longer repayment period, or both. Think of it as giving your practice finances a “health check” and making sure you’re not overpaying.

When Does Refinancing Make Sense?

• Rates have dropped since you took your loan - If you borrowed when rates were higher, switching could save you thousands.

• Your practice has grown - A stronger financial position often means you can negotiate better terms.

• Cash flow feels tight - Refinancing can lower monthly payments, giving you breathing space.

• Your fixed term is ending - This is often the best time to explore your options.

What Lenders Look At

When you refinance, banks and specialist lenders will usually review:

• Your practice’s profitability - Strong accounts make you a lower-risk borrower.

• Loan-to-value (LTV) ratio - The size of your loan compared to the practice value.

• Your repayment history - A good track record works in your favour.

What You Could Gain

• Lower monthly repayments – freeing up cash for growth.

• Better cash flow management – making day-to-day running easier.

• Extra funds for investment – many dentists refinance not just to save, but to borrow a little more for equipment, expansion, or marketing.

And of course, if you’d like to explore whether refinancing makes sense for your own practice, let’s chat.

👉 Contact Us

Even if you’re not sure whether it’s worth it yet, a quick review could save you a lot of money. After all, every pound saved on repayments is a pound you can put straight back into your practice.

Speak soon,

Arun