What about those muppets who live within their means with some spare cash? They won't need a loan to buy a house. Why borrow money from someone if you don't have to?
Implications will be bad as you said - especially for those who borrow themselves to the hilt. That is why I am strongly opposed to excessive levels of private debt. Those on 80K wages who has to pay back over 500K of mortgage debt in a depressed market are going to be in big trouble unfortunately.
