George Freeman, former minister for Mid-Norfolk, has resigned from his position, citing an inability to cope with skyrocketing mortgage payments.
On his Substack, Freeman disclosed a staggering increase in his mortgage, jumping from £800 per month to a daunting £2000, a sum he found unmanageable on his ministerial salary of over £118,000 annually.
This revelation opens a significant conversation: If a former minister with a six-figure income struggles with mortgage payments, what does this mean for the average homeowner?
As numerous individuals confront similar challenges to the one faced by the former minister, is it time for the government to intensify efforts in assisting those struggling with escalating mortgage expenses?
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Graham Cox, founder at Self Employed Mortgage Hub said, “George Freeman has received a dose of the real-world implications of his own government’s utterly moronic economic and housing policies.
“Perhaps because it doesn’t want to draw attention to it, this government doesn’t seem to recognize the devastating effect of significantly higher mortgage and rent payments on people’s livelihoods and quality of life.
“Not to mention how it’s impacting the economy. These are the unintended consequences of never-ending house price increases. Sooner or later the whole house of cards comes tumbling down
“Economic policy needs to be set to control property values if we ever want to escape the UK’s economic malaise and improve people’s living standards.
Sabrina Halll, mortgage advisor and protection advisor at Kind Financial Services said, “Well, it’s at least refreshing that MP’s are feeling the impact of their own actions.
“However, how this situation differs considerably to that of most “normal” people in that most people when worrying about their mortgage payments don’t leave their jobs unless they have the promise of another higher paid job.
“The fact that he has options is a massive privilege. If his payment is £2,000 then I speak with clients who have a mortgage payment around this level who are on half (if not less) than that salary, so I suspect that the real issue is that he’s overstretched in other areas such as car finance.
“In addition, and I’m making quite a few assumptions here but given that his mortgage payment is relatively low compared to his income (despite what he might say) I would assume that he has plenty of equity in his property and therefore has the option to sell and potentially downside which isn’t an option a lot of people have.”