As I said, 125% mortgage is mostly taken-out by people who know what happened in the early 90's and some of them were caught in it directly or through relatives.

Recent 125% mortgages now represent nearer 140% and as the price goes down so the % looks worse by more than the decline.

I worked with a guy who held Northern Rock to their agreement even though they tried to squirm out of it this time last year. He, I found out, was trying to buy a house in Spain as well as a bigger house in the UK. He got the mortgage, and we had to let him go. Northern Rock then blew up about a month after. He only works contract, so it is a precarious situation. He is old enough to have been a home owner in the early 90's. Have you seen the housing market in Spain?

Risk is relative to danger. Perception of risk is related to experience. Cautious folks make better use of experience.

My approach to anyone who makes money from money, is to be very cynical. It works for me. It could work for the global economy.