I've been reading about Spain (along with the rest of the world) is facing a housing market crash (already happening in America) Will be a help for us as we are considering buying in the next couple of years. But I noticed something in an article which caught my eye.

At the same time our hair dresser commented about how her mortgage payments jumped 300 euros a month. That's a car payment without the car. Question is why are floating rates so popular?

original article here

Spanish Housing Market Crash

Ouch, that is a big jump. Could it be though that she has one of these mortgages which have a fixed rate for the first year and then on the 13th month there is an accumulated adjustment ? It's either that or you have a hairdresser with a very big mortgage indeed.

What alternative form of mortgage do you prefer ? I've experienced the endowment mortgage, which left a lot of people in the UK short due to poor stock market performance.