Brokers have questioned how the government expects households to cope with increased mortgage costs if minsters themselves are struggling.
It comes after MP for mid-Norfolk and former science minister, George Freeman, resigned from his ministerial position saying he was unable to keep up with his mortgage payments.
In a blog post, Freeman explained his mortgage costs had increased from £800 per month to £2,000 - repayments which he said he was unable to manage on his ministerial salary of over £118,300 per annum.
R3 Mortgages founder and director, Riz Malik, described this as a “wake-up call” saying that even though rates have come down, there are still many households who are struggling and having to make sacrifices daily.
Release Freedom director and broker, Simon Bridgland, said: “If this comes as news to the powers that be and if it triggers action, great.”
However, Bridgland added it is “disgusting” that it takes a “minister to hit the headlines” to make some people notice the struggles that many borrowers have to deal with regularly.
Additionally, Orchard Financial Advisers managing director, Ben Perks, an increase in payments from £800 to £2,000 is a reality faced by many.
“I have spoken with several clients that have had to make drastic changes to their lifestyles when mortgages have come up for renewal, particularly last year.
“Surely though, if this has happened to a Conservative Minister, the Conservative government has to take action and do whatever it can to boost the economy, control inflation, and drive down interest rates to a manageable level.”
Differences
Kind Financial Services mortgage and protection adviser, Sabrina Hall, pointed out that Freeman’s situation “differs considerably” from that of most “normal” people who experience mortgage worries.
She explained the majority of homeowners do not leave their job unless they have the promise of another higher paid job and that having options is a “massive privilege”.
Meanwhile, Yellow Brick Mortgages managing director, Stephen Perkins, added the key message of the story is “no matter your income, people tend to live to their means”.
He explained those with larger incomes have larger houses and expenses, and so can be equally strained by any increases.
Perkins additionally recognised that those on six-figure salaries are “unlikely to get public sympathy” and have more options to adapt than many on lower incomes.
For example, Shaw Financial Services owner and mortgage expert, Lewis Shaw, said: “I don’t have much sympathy for the ex-minster in question, given he is part of the party which caused some of the fastest spikes in mortgage interest rates we’ve ever seen."
In response, a spokesperson for HM Treasury said: “Interest rates are high across the developed world as economies work to tackle high inflation – the UK is no different.
“While it is welcome news that we have met the pledge to halve inflation, we know many people are continuing to struggle.
