The Euribor, the indicator most commonly used in Spain to fix interest rates on loans, is at an all time high of 5.418%.
A sudden 5.7% increase, a reaction to statements made by the president of the European Central Bank, Jean-Claude Trichet, saw the Euribor ascend to the highest level since its inception in 1999. The previous highest level was 5.341% in August 2000.
The rise is bad news for those with mortgages, particularly ones taken out in the past three or four years when house prices were high and rates were low. Tempting offers of 100% mortgages are not looking so are not looking that great now.
At the current rate, the mortgage review in June will mean an increase in repayments of around €59 per month for a €150,000 loan taken out over a 25 year period.