On the back of the housing market boom many mortgage providers came up with some great offers to attract the attention of house buyers, fixed rate mortgages, mortgages linked to current accounts, etc, but perhaps the most dangerous was the low introductory interest rate mortgage.  Surprised? Read on to find out why.

To many these low interest rate mortgages were a chance to go for that big house, that property they always wanted, but at what cost?

Recent media reports have highlighted the fact that some 2 million home owners will soon be seeing an end to their introductory offers, with their mortgage interest rates returning to the standard benchmark.  As if that was not bad enough, interest rates have risen substantially over the last few years, with many seeing a possible 300% rise in the interest rate charged on their mortgages!

While the property market continues to stay relatively firm (although there has been a softening of prices in places), behind the scenes the situation is starting to turn.  There are many home owners out there who are already struggling with their mortgages after recent interest rate rises, not to mention the fact that rates are expected to rise further in the short term.  Even though there has been little mention of repossessions over the last few years, this is a subject which may well feature prominently very soon.

It will be interesting to see how understanding the mortgage providers are over the next few years, bearing in mind that much of the property boom was created by cheap finance, extended offers and mortgages approved on income multiples of 5 and above.  While quick to push their products and services to the masses, how will they react when the tide starts to turn?