These and other questions arise in the minds of those who own a home and in particular those who want to buy one.

It is important to understand which of the fixed or variable interest rates is the most beneficial.

For those who are looking for a magic solution, the recommendation is always to consult a professional credit intermediary.

Each case is unique:

The most effective way for an individual or families to deal with risk is, to ask for simulations, do maths and understand what the objective is when purchasing the property.

Some credit intermediation specialists say that the variable rate still pays off.

In some banks, a fixed rate for the whole contract is not even an option.

A market survey, carried out by experts in credit intermediation for mortgages, reveals that most of the offers available at banks in Portugal are fixed rates, for a shorter period, for example 10 years.

The fixed rate may seem more appealing as it is a barrier to Euribor fluctuations, but after 10 years of Euribor fluctuations, it still pays off to use the variable rate instead of the fixed rate, as the amount you pay for the fixed rate is higher.

Banks use mechanisms to protect themselves and continue to make profits and what we are witnessing at the moment is the rise in interest rates by most banks.

Banks use several strategies in order to guarantee that they are going to win, so it is common in contracts to include premiums and insurance. It happens that when the customer wants to change the conditions of the contract, by replacing the fixed rate by a variable rate, the result is more charges for the customer.

There is an advantage in having a professional that negotiates with several banks and gets, in each case, the best conditions for the customer.

The ideal will be to use the services of a credit intermediation consultant.

Sometimes, not even our bank of reference is the best option and changing bank can mean a substantial reduction in the amount to be paid.

A good home credit study done by a specialist in credit intermediation, can reduce from hundreds to thousands of euros per year on a home loan.

Do you already know how much you can save with a mortgage? Consult our credit mediation department using the contact form for credit mediation