Fixed or variable mortgage in 2026: which to choose
Choosing between a fixed and a variable mortgage is one of the biggest financial decisions you will make. Here is how each works in 2026 and which suits your situation.
What is Euribor
Euribor is the rate at which European banks lend to each other. It is the reference index for most variable mortgages in the eurozone: your payment is calculated as Euribor plus a margin agreed with the bank.
Fixed-rate mortgage
The interest rate stays constant for the whole life of the loan. The advantage is certainty: you always pay the same. The downside is that the starting rate is usually a little higher and you do not benefit if rates fall.
Variable-rate mortgage
The rate is reviewed periodically (usually every 6 or 12 months) against Euribor. If the index falls, your payment falls; if it rises, so does your payment. It is riskier but can be cheaper when rates are trending down.
Example: €200,000 over 30 years
At a fixed 3.0 %, the payment would be about €843/month. At a variable Euribor 2.5 % + 0.8 % (3.3 %), about €876/month today, but it changes at each review. The choice depends on your risk tolerance and how much you value stability.
How to decide
- If you prioritise peace of mind and plan long term: fixed.
- If you can absorb swings and expect rates to fall: variable.
- There is also a mixed option: initial years fixed, the rest variable.
Simulate your payment and compare Euribor scenarios.
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