Fixed, Variable or Mixed Rate: what is the difference?
A variable rate tracks Euribor and can rise or fall; a fixed rate keeps the payment steady; a mixed rate blends the two. The choice is between predictability and a bet on the market.
In this guide
The three options, plainly
On a variable rate, the payment follows Euribor plus the spread — typically starting lower, but moving with the market. On a fixed rate, the payment stays the same for the contracted period, at the cost of a higher starting rate. A mixed rate combines both: a fixed initial phase, then a variable one.
Predictability or a bet
A fixed rate buys you calm: you know to the cent what you will pay for years. A variable rate exposes you to rises but benefits from falls. Mixed is the middle ground — stability in the early years, market after. There is no single answer: it depends on your risk profile and time horizon.
What to look at beyond the first payment
Do not decide on the first year's payment alone. What counts is how the rate affects predictability, the risk of rises and the total cost over the term. A pricier fixed rate today can prove cheaper if rates climb; a cheap variable one can flip.
How we decide with you
We simulate all three scenarios for your case — amount, term, risk tolerance — and show what each means for your budget, today and if Euribor moves.
Worked example
For a €200,000 loan over 30 years, at today's rate (example figures):
Variable rate: the payment starts around €890/month (Euribor plus spread, ~3.45% nominal) — the lowest, but it moves with Euribor.
Fixed rate: the payment stays steady at about €1,010/month for the whole term — higher today, but no surprises.
Mixed rate: fixed for the early years (near €990/month), then variable, tracking Euribor once the fixed period ends.
Sources
Susana Vasconcelos
- Intermediária de crédito autorizada pelo Banco de Portugal n.º 0008496
- Mais de 10 anos na banca