The question is not, if interest rates will increase, but when. When the interest rates do start rising, probably next year analysts say, the impact will be felt by many. Those who are carrying a SVR (standard variable rate) mortgage loan product will be most affected. Homeowners who qualify for a remortgage will be spared the unexplainable feeling of an increasing mortgage payment month after month they cannot afford.

Unemployment will surely play a part in all this. With the upcoming public sector job cuts looming, interest rates rising will make it difficult, if not impossible, for the unemployed as well as the employed to sustain the ability to pay for their homes. The banks at this pont will have to be sensitive to this and work around the problem with as many homeowners as pollible. Repossession will more than likely reach levels never seen before, unless many mortgage borrowers step up and attempt to get into a remortgage loan product that will help them manage their monthly payment.

Even with a fixed rate mortgage loan product, finding yourself in a negative equity situation is still a great possibility. (This can be thanked to falling house prices). Obtaining a remortgage loan product in this case would more than likely be advisable to help maintain a good payment history.

Looking at the big picture, it seems that many families have become victims of circumstance rather than careless with their money.

A remortgage could be the saving grace for many homeowners. The fact remains, it is not if interest rates will rise, but when.