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Mortgage Brokers, Lda · Tied Credit Intermediary, non-exclusive · Bank of Portugal reg. no. 0008242

Fixed, mixed or variable rate: how to compare in 2026

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IN SUMMARY
  1. 1 Fixed rates give predictability; variable rates expose the loan to the benchmark
  2. 2 The ESIS should allow fixed, mixed and variable rates to be compared
  3. 3 APRC and total payable help assess total cost, not only instalment

Choosing between fixed, mixed and variable rates has no universal answer. In 2026, the right question is simple: do you want predictability, flexibility or a combination of initial stability with future indexation?

The three options

The Bank of Portugal explains that mortgage loans may have variable, fixed or mixed rates. With variable rates, the rate usually equals Euribor plus spread. With fixed rates, the rate stays the same for the agreed period. With mixed rates, there is an initial fixed period followed by a variable period.

Use the ESIS as the comparison base

When marketing credit for a primary permanent home, the ESIS must include simulations for fixed, mixed and variable rates. Compare the same operation with the same amount and term, looking at instalment, APRC, total payable, insurance, fees and optional bundled products.

The decision depends on the profile

A fixed rate may provide budget stability, but it tends to include the cost of that predictability. A variable rate may benefit from future decreases, but exposes the instalment to increases. A mixed rate can help when initial stability matters without fixing the rate for the whole term. The best option is only known at the end; today the decision is made with scenarios and safety margin.

Sources consulted

This article is for informational purposes only and does not constitute financial, tax or legal advice. Always confirm the information applicable to your case with the competent authority and in the pre-contractual documentation. Mortgage Brokers, Lda - Tied Credit Intermediary, Bank of Portugal reg. no. 0008242.

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