Mixed vs Variable Rate in Portugal: The 2025 Strategy

Note: This content is specific to the Portuguese mortgage market.

Portugal has traditionally been a Variable Rate country. Most mortgages are indexed to the Euribor. However, with Euribor rates hovering around 3.5%, variable mortgages have become expensive (~4.2% APR).

In 2025, a new trend has emerged: Mixed Rate Mortgages.

What is a Mixed Rate?

You pay a Fixed Rate for an initial period (usually 2, 3, or 5 years) and then switch to Variable (Euribor + Spread) for the rest of the term.

Why choose Mixed now?

Banks are offering very aggressive discounts on these short-term fixed periods.

• Variable Offer: ~4.2% interest.
• Mixed Offer (3 Years Fixed): ~2.9% interest.

The Logic: You lock in a rate below 3% for the next few years, saving money immediately while waiting for the Euribor to potentially drop in the long run. It offers immediate savings and medium-term stability.

Conclusion

If you are buying in Portugal today, do not blindly accept a variable rate. Ask for Mixed Rate simulations. The monthly savings can be substantial.

👉 Portugal Mortgage Rate Comparator