Debt-riddled new doctors struggle to buy into practices

Newly qualified doctors are struggling to buy into practices because they are overburdened with debt, accountants say.

Some lenders have refused young GPs loans, and others are imposing tougher checks before agreeing to lend.

Jeanette Brown, a partner at accountancy firm Dodd & Co, warned this may leave some retiring GPs unable to sell their share of a partnership.

Loan refusals were the first practical consequences of heavy student debt, she said.

A BMA study this year found final year students had an average debt of £22,821.

Ms Brown said in recent months she had advised two young GPs who hoped to buy into a practice but struggled to secure bank loans.

One bank asked for profit projections to be demonstrated, which she said was unprecedented in her experience.

‘While many banks are still open for business as far as doctors are concerned, new partners may find their requests for buy-in loans turned down if they already have a combination of student loans, credit card debt and large mortgages,' Ms Brown said.

‘It's a commonly held misconception that only low earners get into financial difficulties.'

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register

Already registered?

Sign in

Just published

GP appointment

General practice delivered 342m appointments in 2022 - and lost nearly 500 GPs

General practice in England delivered around 342m appointments in total in 2022 with...

NHS sign

Local GPs unite to take over two practices run by hospital trust

GPs in Swindon have come together to take over two practices that had spent more...

Talking General Practice logo

Podcast: Why are junior doctors preparing to strike?

Talking General Practice speaks to BMA GP trainee committee chair Dr David Smith...

Money

Practices face losing out on QOF income amid soaring demand

GP practices risk losing out on QOF income this year because sky-high demand for...

Nurse giving older man a COVID-19 vaccine

JCVI recommends targeted COVID-19 vaccination programme in 2023

People at higher risk of severe COVID-19 should be offered a booster vaccination...

Health and social care secretary Steve Barclay leaving number 10 Downing Street

Government sets out plans for 'major conditions' health strategy

The government is to set out a strategy to tackle six 'major' health conditions in...