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Wondering why your mortgage is dropping but your practice loan feels stubborn? We pull back the curtain on how commercial borrowing really works for dentists and why the base rate is only half the story. With Kevin Saunders, we map the moving parts—Bank of England base, lender margin, fix lengths, and term—so you can shape repayments that protect cash flow rather than chase a headline APR.

We start by translating the rate rollercoaster of recent years into practical choices for owners. Commercial loans are priced as base plus margin, and margins have become more competitive, often around or below 2% over base. From there we dive into the big fork in the road: fixed versus variable. Unlike mortgages, fixed commercial rates are about budget certainty, not automatic cheapness, and they’re set against the market’s view of future base. We talk candidly about break charges, why five years can feel long in business, and when a variable rate may make sense if cuts continue.

Then we compare goodwill, property, and equipment finance. Asset finance often acts like a flat, pre‑calculated cost, decoupled from base—ideal for chairs and scanners when you want simplicity. For goodwill and property, term length becomes a powerful lever. Extending from 15 to 20 or 25 years can drop monthly payments more than shaving a few basis points off the rate, which matters most in the fragile start‑up or post‑acquisition window. We run a simple example on a £500,000 loan to show how a 0.25% cut saves roughly £67 a month, useful but smaller than many expect. We also clarify tax: interest is deductible in both company and sole trader structures, but capital repayments are not, so prioritising mortgage pay‑down over commercial principal can be smarter.

By the end, you’ll know how to compare fixes and variables side by side, stress‑test your repayments, and pick a structure that buys you peace of mind without boxing you into costly break fees. If you’re planning a purchase or thinking about refinancing, this is the timely, practical guide you need to make clear, confident decisions. Enjoy the conversation, and if it helps, share it with a colleague who’s weighing their options.

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Disclaimer: All content on this channel is for education purposes only and does not constitute an investment recommendation or individual financial advice. For that, you should speak to a regulated, independent professional. The value of investments and the income from them can go down as well as up, so you may get back less than you invest. The views expressed on this channel may no longer be current. The information provided is not a personal recommendation for any particular investment. Tax treatment depends on individual circumstances and all tax rules may change in the future. If you are unsure about the suitability of an investment, you should speak to a regulated, independent professional. Investment figures quoted refer to simulated past performance and that past performance is not a reliable indicator of future results/performance.

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