Fixed, variable or mixed: how to choose the best option for you
Choosing the right interest rate is one of the most important decisions when taking out a mortgage. The choice between a fixed, variable or mixed mortgage can have a significant impact on your monthly payment, the total cost of the loan and the stability of your finances over time.
At Finzia, we help you understand the differences and assess which option best suits your needs, financial profile, and market situation. This guide provides you with a clear overview to make an informed decision.
Fixed-rate mortgage: security and stability
What does it consist of?
It is a mortgage loan with a fixed interest rate throughout the term of the loan. From the first instalment to the last, you will always pay the same amount.
Advantages:
- Stable fees with no surprises
- Greater financial predictability
- Ideal for conservative profiles or families with fixed incomes
Disadvantages:
- Initial interest rate generally higher than other types of loans
- Lower returns in low interest rate scenarios
When might this be of interest to you?
When you value the peace of mind that comes with a fixed instalment, want to avoid the risk of future rises in the Euribor, or are planning for the long term without any surprises.
Variable mortgage: flexibility with market exposure
What does it consist of?
The interest rate is linked to a reference index (usually Euribor), plus a fixed spread. The instalment may increase or decrease over time.
Advantages:
- Lower initial fees
- Potential savings if rates fall
- Interesting for short terms or rapid repayment
Disadvantages:
- Risk of interest rate rises and increased market share
- Lower long-term stability
- Difficulty in predicting the total cost of the mortgage
When might this be of interest to you?
If you are flexible, you have the capacity to absorb potential fee increases and are willing to benefit from low-rate scenarios.
Mixed mortgage: balance between stability and opportunity
What does it consist of?
It combines a fixed interest rate during the first few years (usually between 3 and 10) and a variable rate for the remainder of the term.
Advantages:
- Initial stability
- Possibility of benefiting from low rates in the future
- It usually offers conditions that are intermediate between fixed and variable rates.
Disadvantages:
- Less stable than long-term fixed
- Complexity when comparing offers
- It is not always cheaper overall.
When might this be of interest to you?
If you are seeking peace of mind in the medium term but do not want to commit to a fixed rate for the entire period. Also if you plan to sell the property or pay off the mortgage before the variable rate kicks in.
What type of mortgage is best today?
It depends. The economic context is constantly changing. That is why at Finzia we do not recommend a single option, but rather the strategy that best suits your profile, objectives and risk tolerance level.
We analyse:
- Your current financial situation
- Ability to save and income stability
- Housing tenure horizon
- Interest rate forecast and Euribor trend
- Early repayment options
In addition, we negotiate with different banks to find the best possible combination of terms, bonuses and flexibility in each case.
How can Finzia help you?
- We carried out a comparative simulation between fixed, variable and mixed rates.
- We explain the differences clearly and personally.
- We help you identify the most efficient option based on your profile.
- We negotiate optimal terms with various banks.
- We accompany you until the signing, resolving all your queries.
Choosing the right mortgage is not just about the interest rate.
It is a strategic decision that must be aligned with your situation and your objectives.
At Finzia, we provide you with the analysis, criteria and support you need to make decisions with complete confidence.
