If you read about the hedgies that made a fortune from the house price crash in the US you will find they discovered the biggest impact on defaults/foreclosures was house price growth (or lack of it) and not unemployment or interest rates.
When prices went flat or down more people defaulted - employment and interest rates didn't have as much as an impact.
Having a look on the net, you can still get 95-110% mortgage here - but you will need mortgage insurance and/or someone elses property for security also.
