Mixed rates make up 86% of new mortgages in Portugal. What to check before you choose
In September 2026, 86% of new mortgages in Portugal had a mixed rate, according to Banco de Portugal. The average rate was lower than on variable loans, but the fixed period ends. Here is what can happen to your monthly repayment when it does.
In this article
Almost nine in ten new mortgages in Portugal in September 2026 had a mixed rate. This may make sense for you, but the first rate is only part of the decision. Here is how a mixed rate works, what the numbers say and what happens when the fixed period ends.
How do mixed-rate mortgages work in Portugal?
A mixed rate is fixed for the first years of the loan and variable after that. During the fixed period, your repayment does not move with Euribor. After it, your repayment follows Euribor. If you are used to a rate fixed for the whole loan, this is an important difference. We compare the three options in our guide "Fixed, Variable or Mixed Rate: what is the difference?"
How many new mortgages have a mixed rate?
In September 2026, 86% of new loans for a main home in Portugal had a mixed rate, according to Banco de Portugal, the country's central bank and regulator. In August it was 87%. A year earlier, in September 2025, it was 71%.
| Indicator (September 2026) | Value |
|---|---|
| New mortgages with a mixed rate | 86% |
| Average mixed rate | 2.92% |
| Average variable rate | 3.30% |
| Average rate, all new operations | 3.06% |
| Average repayment, all loans | 450 € |
Banco de Portugal data, published on 2 November 2026. Figures refer to loans to build or buy a main home. New operations include renegotiated contracts.
Is a mixed rate really cheaper?
On average, yes, but only during the fixed period. In September 2026, the average rate on new operations was 2.92% for mixed rates and 3.30% for variable rates, according to Banco de Portugal. These are averages. They do not tell you which rate you will be offered.
The lower rate also does not tell you what you will pay later. That depends on Euribor when your fixed period ends, and nobody knows that figure today.
Why is the average repayment rising?
In September 2026, the average repayment on all loans for a main home in Portugal reached 450 euros, the highest since the series began, according to Banco de Portugal. It was the 13th monthly rise in a row. The figure is 32 euros above the end of 2025.
Banco de Portugal links the rise to both existing loans and new loans, which have higher average repayments. This average mixes loans of very different ages and sizes. It is not the repayment on a home bought today.
Interest rates also matter. On 29 October 2026, the European Central Bank (ECB) kept its deposit facility rate, its main reference rate, at 2.50%. It had raised rates in June and September. In October, 6-month Euribor averaged 2.975%.
What happens to your repayment when the fixed period ends?
Your repayment is recalculated using Euribor at that time, your spread and the amount you still owe. It can go down, stay similar or go up. Here is an example.
A simple example
You borrow 200,000 euros over 30 years, with a rate of 2.92% fixed for the first 3 years. Your repayment is about 835 euros a month. After 3 years, you still owe about 186,900 euros, with 27 years to go.
| Rate after the fixed period | New repayment | Change per month |
|---|---|---|
| 3.0% | 842 € | +8 € |
| 3.5% | 893 € | +58 € |
| 4.0% | 944 € | +110 € |
| 4.5% | 998 € | +163 € |
FINOVA estimates, without insurance or fees. The 3-year fixed period is only for this example. The rates are scenarios, not forecasts. Your repayment depends on the amount, the term, the spread and Euribor at each review.
As a reference, the October average of 6-month Euribor (2.975%) plus a 1% spread gives about 3.98%. This uses today's figures. It is not a forecast for 3 years from now.
A fixed rate protects you for a period, not forever.
If you can only afford the repayment at the fixed rate, run the numbers with a higher rate before you sign.
What to check before you choose
- How long the fixed period lasts. Two or three years give you very different protection from ten years.
- The spread after the fixed period. Together with Euribor, it sets your next rate. Also check which Euribor rate applies: 3, 6 or 12 months.
- What the rate depends on. Insurance, paying your salary into the bank or other products can affect your offer. Ask what happens if you stop having them.
- The cost of early repayment during the fixed period. The bank can charge a fee of up to 2% of the amount you repay. Check your contract.
- Your repayment at a higher rate. Ask for a simulation at 4% and 4.5%, for example, and compare it with your monthly budget.
Frequently asked questions
Is a mixed rate better than a variable rate?
There is no single answer. A mixed rate gives you predictable repayments at the start. A variable rate follows Euribor from day one, up or down.
How long does the fixed period of a mixed rate last?
It depends on each bank's offer. The length is in the ESIS (European Standardised Information Sheet), the document the bank gives you before you sign. Compare offers with the same fixed period: a rate fixed for 2 years and one fixed for 10 years are not directly comparable.
Can I make early repayments during the fixed period?
Yes. The bank can charge a fee of up to 2% of the amount you repay, plus stamp duty (imposto do selo) of 4% on the fee. After the fixed period, the maximum is 0.5%. Our guide "Can I repay my loan early? What penalties apply?" explains the rules.
Can I move to another bank when the fixed period ends?
You can ask other banks for offers and compare the costs of remortgaging with another lender. The new bank always decides, using the rules in force at that time.
There is no single right answer. It depends on your loan and your monthly budget. It also depends on how long you plan to stay in the home and the risk you accept after the fixed period.
FINOVA compares offers from several banks and reviews each case individually. FINOVA's fee is paid by the bank, after completion. The mortgage process itself always has costs of its own: taxes, the property valuation and registration fees.
Sources
Mixed-rate share, average rates and average repayment (September 2026): Banco de Portugal, BPstat, statistical press release of 2 November 2026 (in Portuguese). Mixed-rate share in August 2026: press release of 1 October 2026 (in Portuguese).
Rate rises in 2026 and the decision of 29 October 2026: European Central Bank, press releases of 11 June, 10 September and 29 October. Date of the December meeting: European Central Bank calendar.
Average 6-month Euribor in October 2026, as published by EMMI and compiled by global-rates.com.
Mixed-rate share in September 2025: idealista/news, with Banco de Portugal data (31 October 2025, in Portuguese).
Early repayment fee limits: Banco de Portugal, Bank Customer Portal.
Stamp duty (imposto do selo) of 4% on fees, item 17.3.4: Stamp Duty General Table, Portal das Finanças (in Portuguese).
Repayments in the example: FINOVA calculation, using the assumptions stated in the text.
