Quote:
Originally Posted by Sephiroth
Dunno about that. Someone on 45 grand is likely to have greater commitments than someone on 25 grand whose commitments won’t be that much higher than someone on 15 grand. Sort of thing. The person on 45 grand may well have had time to produce more children than the person on 25 grand and thus will consume more energy. Etc.
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I’m sure there will be many examples against the trend, particularly those who have in the last few years borrowed at or near the maximum they can for a mortgage. The underlying assumption is a greater rainy day fund and/or greater discretionary expenditure (socialising, holidays, more expensive car). It won’t be the case for everyone, and the squeeze on multiple fronts (mortgage rates) certainly has the potential to exhaust much of this in the coming months for many of those that do have the luxury.
Less discretionary expenditure has wider economic impacts for those employed as a result of it in pubs, cafes, restaurants, retail, etc. I’m certainly not intending to imply they’ll have no problems individually nor present a wider economic problem even if they can tighten their belts accordingly.
Found an interesting read - it doesn’t answer the question but an indication of just how many households savings could be decimated if this lasts a couple of years.
https://www.nimblefins.co.uk/savings...avings-uk#nogo