A fixed rate buys certainty for a defined period. A variable rate may start lower but transfers rate risk to the borrower.
OUR METHODSources → assumptions → European context → verdict
Understand the reset
Confirm how often a variable rate changes, which benchmark it follows and whether caps or floors apply.
Price the insurance
The difference between fixed and variable payments is the cost of certainty. It may be valuable when the household has limited room for higher payments.
Stress-test both
Model payment changes at several higher rates, early-repayment costs, refinancing fees and the expected holding period.
Match risk capacity
Choose based on household cash flow and resilience, not a confident prediction about central-bank policy.
Educational illustration only—not personal financial, tax or investment advice. Tax, salary, broker and market figures change; verify current local information before acting.