It's interesting to note that although there is a mortgage/lending crisis going on these days, the majority of traditionally financed mortgages are not coming into trouble or close scrutiny. Bad Credit Mortgages is a company in the UK that provides more of a traditional approach to people with less than perfect credit histories without going deep into that scary bubble. The key to finding a mortgage that works for you is to really be honest with yourself and your lender about your ability to afford it. Don't get sucked into hoping something is going to suddenly change and let you afford that 6 bedroom golf course resort. Just go with the reality of the situation.

Personally, I tend to feel that this is how a lot of mega debt situations get started. People want to believe in a miracle, they're not so much into the constant self-sacrifice of saving and denying themselves what they can see that everyone around them has. Doing that short term is pretty doable, but not always sustainable over the long term.