100% Finance for Dental Practices — What’s Changed?

30 Oct 100% Finance for Dental Practices — What’s Changed?

For many dentists, the biggest hurdle to ownership has always been saving for a deposit.

But what if you could actually borrow 100% of the purchase price of a dental practice?

It sounds too good to be true — but it isn’t. Under the right circumstances, and within certain lending guidelines, 100% finance for dental practice purchases is now entirely possible.

So, Is 100% Finance Really Possible?

Yes — we have assisted dentists to borrow 100% of both the goodwill and the property value of their new practice.

Of course, there are still rules and limits in place, but it can absolutely be achieved within bank lending guidelines.

How It Works for Existing Practice Owners

If you already own a practice, this may sound familiar. You can often raise finance against the equity or goodwill in your existing business (or the property itself) to use as a deposit for your next acquisition.

It’s a common route — and one that banks are very comfortable supporting.

How It Works for First-Time Buyers

This is where things get really interesting.

Previously, first-time buyers could access 100% finance up to around £300,000 per dentist for goodwill (not including property).

It’s now possible to raise 100% finance, without the £300k limitation, for your first practice purchase — covering both the goodwill and the property (where applicable).

Loan terms are typically split — 25 years for the property and 15 years (sometimes up to 20) for goodwill.

This major update to the Bank’s lending policy opens the door for many more first-time buyers to step into ownership — without needing a large cash deposit.

Why Has This Changed?

One of the major banks recently increased its lending limits, sparking policy reviews between the other lenders.

Banks are now actively competing for healthcare clients, who are widely regarded as some of the most reliable borrowers.

In addition, goodwill values of practices have risen substantially over the past decade, and lenders need to present options that enable buyers to purchase practices.

What About Interest Rates?

As with any lending, banks offer varying rates, and as a finance broker we can explore all your options and present them to you, so you can be confident that you’re getting a competitive lending rate.

Naturally, 100% lending can carry a slightly higher rate, but still be in line with what you would expect to pay, even with a deposit.

Still, many see this as a worthwhile trade-off — after all, the bank is effectively buying the asset for you in full.

As with any loan, once your practice grows in value or the loan balance reduces, you can always refinance at a better rate later on.

Can You Still Borrow for Development or Equipment?

Yes — though it depends on how much you’ve already borrowed against the goodwill.

If you’re already at 100% loan-to-value, you may need short-term development finance (typically over five to seven years). However, some banks will include development costs upfront if the figures stack up.

This is where having a specialist broker is essential. Every case is unique, and banks take a tailored approach — unlike the one-size-fits-all world of residential mortgages.

Serviceability Still Matters

Even with higher lending limits, affordability remains key.

Banks will still assess whether the practice generates enough profit to cover loan repayments and provide a reasonable income for the owner.

To help with cash flow, some lenders have started extending goodwill loan terms from 15 years to 20 years, making repayments more manageable.

Why Haven’t More People Heard About This?

Partly because the old lending caps made it irrelevant for most buyers — there just weren’t many £300,000 goodwill practices available.

Now that the limits have risen, expect to hear a lot more about 100% finance in the coming months.

Crunching the Numbers

Each case is different. The best approach is to review your numbers, assess affordability, and speak to a broker to understand your options.

Working with a broker who can model different funding scenarios, present your case to banks, and negotiate on your behalf can make all the difference.

Final Thoughts

The rise in 100% finance caps is great news for both first-time buyers and growing practice owners.

With the right structure, a solid business case, and expert guidance, owning a dental practice — even without a deposit — is now more achievable than ever.

Get in touch with our team to discuss your plans — we’ll be happy to chat through your options and help you find the best route forward.