Chancellor Jeremy Hunt is being criticised for saying on X to a constituent in South West Surrey that £100k is not a “huge salary in our area if you have a mortgage to pay”.
☎️Constituency Calls ☎️
— Jeremy Hunt (@Jeremy_Hunt) March 22, 2024
My first call was to Rosemary French, President of the Cranleigh Chamber of Commerce to talk about the planned changes to the High Street. She talked to me about the problems of the pavements not being wide enough, the huge success of street markets and… pic.twitter.com/A5zupGOCsE
Newspage asked mortgage brokers for their thoughts, below.
Rohit Kohli, director at The Mortgage Stop:
“If Jeremey Hunt is feeling sorry for someone in Surrey struggling on £100k, I’m sure he is going to go ballistic when he hears of all the nurses, doctors, police officers, council workers and countless others earning less than half that. What an out-of-touch Chancellor.”
Ben Perks, managing director at Orchard Financial Advisers:
“If we needed confirmation that the Chancellor is out of touch with the public, then this is it. When the average salary in the UK is less than £35,000, to make out that £100,000 is no big deal is beggars belief. Rishi will be rolling his eyes and people will be calling for Jeremy’s head.”
Richard Jennings CeMAP, founder & managing director at Richard Jennings Mortgage Services:
“I sometimes wonder whether politicians have a filter before making comments such as these. Regardless of location, salary, mortgage size or expenditure, the vast majority of the UK population are feeling the pinch at best and struggling to make financial decisions as basic as heating their home or feeding their families. As Chancellor, this should be the focus of his thoughts, discussions and policies, not debating a £100,000 salary on X.”
Graham Cox, director at SEMH Self-Employed Mortgages:
“Another day, another PR gaffe from Britain’s most unwanted. You can understand Hunt saying this to a constituent in a private meeting. But on social media it shows a staggering lack of awareness. Maybe he’s just past caring anymore.”
Riz Malik, director at R3 Mortgages:
“The whole government has gone gaga. They live in a world of privilege not poverty so a six figure salary is probably insignificant to them even though it still goes a long way in the world of mortgages.”
Bob Singh, founder at Chess Mortgages:
“Another unguarded comment from our Government. £100kpa attracts £34,000 tax and NI leaving a monthly net wage of £5500. A mortgage of £450k over 25 years at 4.5% is £2500 pm. With living costs of, say, £2000 pm this leaves a slim margin for life’s luxuries. The mortgage payments at 1.5% would have been £1800. So due to higher inflation and consequently higher interest rates these households are paying £700 pm more. The picture is better if a couple both earn £50k each with deductions of just £25k. £100k is a pipe-dream for many but living in expensive areas is a choice and if you make your bed you must lie in it. From where I’m sitting £100k is sufficient to get by on.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“This statement could easily be the final nail in the coffin for the Tory party’s electoral fortunes. When average wages are £35,000 a year and the median wage is £28,000, it’s laughable. The millionaire, Jeremy Hunt, has just confirmed how detached from reality he and, by extension, his party is from the lived reality of millions of hard-working Brits who live outside the South East. How much longer does the country have to listen to this never-ending flow of out-of-touch comments before a general election?”
Gareth Davies, director at South Coast Mortgage Services:
“No wonder there’s a total disconnect between the majority of the UK public and the people in charge of running the country. These comments are naive at best, completely ignorant and damning at worst. Surrey may be an area of the UK with higher than average incomes, but along with that comes higher than average bills and outgoings. Earning more than the national minimum wage does not make you immune to the hypocrisy and senselessness of some of the current Government’s policies.”
Dariusz Karpowicz, director at Albion Financial Advice:
“Sure, Surrey’s house prices are right up there, but with £100k being nearly triple the average wage, you’d expect a bit more awareness from the Chancellor. It’s moments like these that make you question if our leaders truly grasp the financial tightrope many walk daily. Perhaps it’s not about being out of touch but rather needing a reality check on the ground level.”
Harps Garcha, director at Brooklyns Financial:
“In the bustling corridors of power, recent comments by figures like Sir Howard Davies and the Chancellor have sparked debates that echo far beyond Westminster. While the Chancellor’s remarks may resonate with some, they also risk sparking a debate among those who feel left behind, including nurses, junior doctors, policemen and a significant portion of the middle class. Even with earnings of £100,000, many feel the sting of being sidelined by policymakers who seem out of touch with their struggles. While relocating to a more affordable area appears viable, it remains an elusive dream for many others on lower incomes.”
