With the Euribor rising slowly in 2026, the question is back. We explain the three options with real numbers, what happens to the instalment if the Euribor moves one point, and the penalties on each route.
Variable rate: you follow the Euribor
The instalment is recalculated every 3, 6 or 12 months with the Euribor of the moment plus the spread. It almost always starts lower than the fixed rate and benefits when the Euribor falls, as it did in 2025. It rises when the Euribor rises, as in 2022 and 2023.
The early repayment fee is 0.5% of the capital repaid, now that the exemption ended at the close of 2025.
Fixed rate: you pay for predictability
The instalment stays the same for the fixed period (5, 10, 15 years or the whole term). It costs more at the start, because the bank charges for the risk of the Euribor rising, and it carries a higher early repayment fee: up to 2% of the capital.
It is the choice of anyone who wants to know exactly what they will pay until 2036 and is willing to pay for that.
Mixed rate: fixed for a few years, variable afterwards
It has been the most popular option in recent years: fixed for the first 2 to 5 years, when the budget is tightest with the move, works and furniture, and variable afterwards. Watch what happens at the end of the fixed period: the rate switches to Euribor plus spread, and that spread should be written in the contract from the start.
What one point of Euribor does to your instalment
- Euribor at 2.954% + 1.25% spread (nominal rate 4.204%): €978 a month.
- If the Euribor falls one point (nominal rate 3.204%): €865. €113 less.
- If it rises one point (nominal rate 5.204%): €1,099. €120 more.
- The question to ask before choosing variable: does €1,099 fit the budget without giving up saving?
How to decide without a crystal ball
- If the instalment with one extra point of Euribor is still comfortable (below 35% of income), the variable rate usually comes out cheaper over the term.
- If a €120 increase keeps you awake at night, the fixed or mixed rate buys peace of mind. Peace of mind has a price, and it can be a good deal.
- If you plan to overpay or sell in the next few years, the 2% fee on the fixed rate weighs heavily. The variable rate gives more freedom.
- You can always renegotiate or transfer the mortgage later. No choice is for life.
The trick nobody uses
Run the calculation on all three options with the same amount and term and look at the total amount payable for each one, not just the first instalment. Then compare the annual difference with what you would pay in fees if you wanted to leave early. It is half an hour of sums that avoids years of regret.
Frequently asked questions
Can I switch from variable to fixed halfway through the loan?
Yes, by renegotiating with your bank or by transferring to another one. There are process costs and the bank may ask for a new valuation.
Is a mixed rate always a good idea?
No. If the spread after the fixed period is high, what you saved in the first years comes back out later. Read the contract to the end.
Which Euribor should I choose: 3, 6 or 12 months?
The 12-month one changes once a year and gives more stability; the 3-month one follows the market faster, up and down. In 2026 the difference between them is small.