[CamB]

Yeah, I think the point I am making is that they encourage people to keep borrowing more (which is why the bank likes them) - in other words, they take any of the compulsory savings regime out of a mortgage.

This is fine when prices keep going up, but means that a much broader number of mortgage holders are likely to be in a difficult position if prices go south.

In particular, this is an issue when the mortgage has been topped up to buy holidays, cars and big screen tvs ---> the ready availability of the cheap credit is too big a temptation for a lot of people.