Over the last couple of years, many homeowners have enjoyed the benefit of record low interest rates. The Bank of England has kept the Base rate at 0.5 per cent for over two years and this has resulted in reduced mortgage repayments for many households. However, with interest rates set to rise, many homeowners are facing an uncertain time with experts concerned about the impact that rising mortgage repayments will have on the UK economy.

Industry watchdog the Financial Services Authority (FSA), has published guidelines for mortgage affordability. It says, "a mortgage is affordable if its level and terms allow the consumer to meet current and future payment obligations in full, without recourse to further debt relief or rescheduling, avoiding accumulation of arrears while allowing an acceptable level of consumption".

Recent figures from the Council of Mortgage Lenders (CML) suggest that an increase in interest rates could leave millions of households struggling to meet their mortgage repayments. It found that 2.9 million homeowners would breach the FSA's published affordability guidelines if interest rates were to rise by 2 per cent.

When rises in the general cost of living are taken into account - inflation hit 4.5 per cent in May 2011 - the outlook for many households looks gloomy. Rising petrol costs and home energy bills are already stretching household budgets very thin and so it's no surprise that many people have started to shop around for remortgage deals.

As more and more concerned homeowners realise the implications of falling into arrears, many look to remortgage on a fixed rate deal. However they have also begun to realise that due to the demand for such contracts, the interest rates and costs of fixed rate deals has increased and are not so cost effective any more.

David Hollingworth from independent mortgage brokers London and Country said: "Heightened anticipation of a hike in interest rates has led to a rapid shift in fixed rate mortgage pricing. Lender after lender has moved to increase its rates, often on more than one occasion."

Mr Hollingworth also commented that many borrowers have missed out on the very lowest mortgage deals as the demand for fixed rate remortgages increases. However, he also points out that the current remortgage deals are still competitive in historical terms.

Statistics show that since the beginning of 2011, the average interest rate on a fixed rate contact has increase by almost half a percent, seeing significant increases in many homeowners monthly repayments.

As the demand for remortgages increases, lenders look set to continue increasing the cost of fixed rate deals. CML figures showed that remortgage approvals increased by 16 per cent between February and March 2011.

If you're considering fixing your mortgage then it may be better to act sooner than later. A wise course of action is to speak to an independent mortgage broker who can scour the market to find the best fixed rate deals. With interest rates set to rise, however, it could be that fixed rates are also set to increase over the next few months.