Regular spending on popular weight loss medications could significantly reduce the size of the mortgage you are offered by lenders, financial brokers have warned.
How Monthly Outgoings Affect Borrowing Power
Mortgage providers conduct rigorous affordability checks, scrutinising all regular income and outgoings. Monthly payments for drugs such as Wegovy and Mounjaro are now being factored into these assessments. According to Jamie Alexander, mortgage director at Alexander Southwell Mortgages, a regular outgoing of £200 to £300 could shrink the maximum loan available by a staggering £20,000.
Aaron Strutt of Trinity Financial confirmed that lenders will likely want to know about such expenditures. "If an applicant was spending several hundred pounds a month on weight loss drugs, the lender is probably going to want to know about it," he said. Alexander added that lenders treat these costs like any other committed bill, directly reducing your spare income in their calculations.
The Scale of Private Spending in the UK
It is estimated that around 1.5 million people in the UK are currently using these weight loss treatments, with more than half on Mounjaro. Crucially, experts suggest that nine out of ten users pay privately, sourcing medication from online services and high street pharmacies at a cost of £120 to £250 per month.
However, research highlighted by University of Oxford academics Sam West, Dimitrios Koutoukidis, and Susan Jebb points to a major catch. More than half of users stop taking the drugs within a year, with cost being the primary reason, raising questions about long-term cost-effectiveness.
Broker Views and Potential Solutions
While David Hollingworth of L&C Mortgages noted he hadn't seen this issue cause major problems widely, he acknowledged that an underwriter might raise it. "It’s possible a lender could ask about it," he stated.
Nicholas Mendes at John Charcol offered a potential perspective for applicants, noting, “It’s something that someone could cancel.” This highlights the discretionary nature of the spending in the eyes of some advisers, though lenders may still consider it a current committed outgoing during the application process.
The key takeaway for potential borrowers is clear: any significant regular expenditure, including on private healthcare, must be factored into financial planning when seeking a mortgage, as it can have a direct and substantial impact on the amount a bank is willing to lend.
