To think that after all this ppl will relax about keeping up with the Jones's?

[nowaitaminute]

Now I'm going to start off by acknowledging that I know a lot of ppl cannot save etc. But...on a whole do you think after all of this ppl might be more inclined to opt for smaller houses with smaller mortgages, stop getting newer cars with huge payments, stop buying the latest gadgets and subscribing to every subscription going. Try to reduce their expenditures dramatically and try to save some money specifically to tide them over in these kinds of situations. AND at the same time realize that the huge house, flash car and astronomical outgoings are a not necessary and practically worthless in times like these, that they only add to your worries? Just a thought...

I must say, I don't think interest rates are going up in a while. There's going to be a clear political incentive to keep them low by hook or by crook, as there has been for the last decade.

Nope. Because plenty of people aren't really affected financially by this or are very well off, and there are always those who can't seem to help themselves trying to keep up with the very well off . DH and had savings anyway, and our income has been unaffected by this. We dont drive flash cars out of choice, but can afford to both live well AND save, and there are many people in that position.

oohnicevase - but if you have a nice big 4 bed detached house with everything you need and enough cash to be able to pay for it without borrowing the £550 offered then you are the Joneses!

I think people will be very changed by this experience - but not really to do with comparing themselves with others which they are always going to do.

People will be much less inclined to spend because they are waiting to see what comes around the corner or how this all works out. Expensively leased cars are a definite casualty.

Agree that the govt need to keep interest rates low if they can. That, however, discourages saving. And means-tested anything seems like a kick in the teeth for savers. (I don't mean rich people I am comparing two people on similar incomes who make different saving/spending choices).

It is also natural and a fairly basic tenet of society to want to fit in, to aspire to better, to want to improve things, to seek the approval of our peer group. What might change is the money angle but I doubt it. Our success is measured in money and what it can buy, (and it buys time, health, space, education and a social life - not just stuff)

@InTheSummerhouse .. I don't see a 4 bed house as keeping up with the Jones . It's not massive just a normal size 4 bed .. I grew up in a very large country house so no it's most definitely not ..just a normal house with enough space for two children and a husband who works from home .
Dh is a high earner and we most definitely don't care what anyone does . We like the fact we have al but paid off this house and no debt . Especially in the current climate .

Low interest rates do discourage saving, but that's been the way for a decade now. They're evidently willing to weather the disadvantages.

No - as I said - you are the Joneses - people willbe keeping up with you!

If that were the case OP, those that would live with less would already be doing that by now.

I would give my right arm for a larger house and in particular a larger garden than the very tiny garden we have now. So no, I don’t think this will hold true.

We compromised on this one to do the sensible thing and ensure we weren’t over extended, and of course there’s a big park two minutes away that the kids can play in isn’t there? Except of course it’s off limits for general play.

Lockdown with two very active children has been a challenge.

As people spend so much more time in their homes, I can see a lot of people wishing they had more space.

@Inthesummerhouse oh right .. I don't see it like that as everyone I know as big houses and great jobs ( mostly ) .. I just think I make my life choices and they make theirs .. if they want a big mortgage then up to them.

. I don't see a 4 bed house as keeping up with the Jones . It's not massive just a normal size 4 bed ..

Surely this is quite area dependent though. A 4 bed in many parts of London will be 1.2m plus