EURIPORbre

Can someone explain to me why all the home loans in Spain are adjustable rate?

(04-08) Madrid-based EFECOM reports today that the average monthly mortgage payment will rise by over 80€ due to last month's hike in the Euribor rate, to 4.56%. Madrid, Catalonia and Basque Country homes are said to experience the highest jumps: 1,295€ a year more for Madrileñ@s, 1,205€ for Catalonians, and 1,100€ for the Basques.

On a monthly basis, the increased out-of-pocket mortgage expenses look like this:

Madrid, 108€
Catalunya (Barcelona, Girona, Tarragona) 100€
País Vasco 91.67€
Baleares 90.21€
Navarra 81.10€
Castilla-León 65.95€
Cantabria 65.45€
Asturias 62.22€
Extremadura 48.39€

If it is to be believed (as reported in area papers earlier this summer) that the median per capita annual income (after taxes) in Barcelona is 16,555€, a 1,200€ a year (or 7.25%) hike in mortgage payments is likely to inflict a bit of pain, especially to single income households.