Generally speaking, we can distinguish between two types of mortgage, based on the type of interest rate:

Fixed rate mortgage

In this instance, the bank will offer a fixed interest rate, thereby providing you with security against changes in the Euribor and allowing you to know what the monthly payment will be until maturity.

The main advantage of fixed rate mortgages is the security of knowing that the amount to be paid will not be affected by market fluctuations.

Variable rate mortgage

If you choose to finance your property with a variable rate loan, this will mean that, on a regular basis, normally every 12 months, the interest rate to be paid will be revised in line with the Euribor rate.

The main advantages of variable mortgages are the low fees and a longer payback period.

However, we must not forget that the amount to be paid each month will depend on whether the Euribor rate goes up or down.