Fixed or variable mortgage: which one to choose?

A fixed mortgage and a variable mortgage differ, mainly, in the interest rate that is applied to each of them, offering, therefore, different conditions for each type. Depending on your needs and your economic situation, you must choose between one or the other. In this post we will try to clarify the main differences between each type of mortgage to make it easier for you to decide.

Differences between fixed mortgage and variable mortgage

Although the interest rate is the main characteristic that defines these two loan models, there are more differences between a fixed mortgage and a variable mortgage. These are, together, the most remarkable:

Type of interest

While the same interest rate is applied in the fixed mortgage during its existence, in the variable mortgage the interest rate to be applied will depend on a reference index, usually the Good Finance, which will fluctuate. Thus, the fee to be paid in the fixed mortgage is always the same, while in the variable mortgage the fee may change according to fluctuations in the benchmark.


Fixed mortgages have a shorter repayment term and variable mortgages have a longer term.


By having a shorter repayment term, the fixed mortgage payment is greater, in addition to the fact that it will remain static during the entire existence of the mortgage loan. On the other hand, by having a longer repayment term, variable mortgages have lower installments that will also fluctuate according to the reference index.

Fixed or variable mortgage: which one to choose?

The most complicated task is to choose the type of mortgage, there is no better financing model. Thus, we must choose the type of mortgage taking into account our profile as a consumer and our risk tolerance .

In this way, fixed mortgages have more stable installments, lower long-term costs and more affordable conditions. Interest rates below 3% or even 2% can be found, although they also have higher short-term installments, higher opening fees and a higher exchange penalty. With this in mind, perhaps fixed mortgages are for those who want to have the security of paying a fixed fee every month and who have the possibility of paying the mortgage for a shorter term.

Longer repayment terms and fewer commissions


On the other hand, variable mortgages are cheaper in the short term, have longer repayment terms and fewer commissions. However, the installments of these mortgages are more unstable and expensive in the long term, with higher installments during the first year. With this in mind, variable mortgages may be for those who want to pay lower fees for longer .

In any case, to have updated information on the conditions of some and other mortgages, it is best to use the services of a financial comparator, which can help us navigate between the different offers that exist in the market so that we can decide on what Type of mortgage best suits our profile and our needs.

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