Are you familiar with the term "unsecured personal loan"? No? Well, an unsecured personal loan is a type of loan for which you do not need any form of security. This means that you don't need to have your house or any other property as security for the repayment of the loan. It will be granted just with your credit history. 125% mortgages, which are no longer available, were based on this kind of loans. Millions of British homeowners surely benefited from 125% mortgages.
Basically, 125% mortgages were a kind of mortgage that allowed a borrower to borrow 125% of the value of the mortgaged property. A 30% of this sum was represented by an unsecured personal loan. So, 125% mortgages were quite generous.