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# What type of interest rate should I choose for my mortgage?

For your mortgage you can choose: 

* **fixed** interest rate for the entire duration of the loan,
* **floating rate** or  
* a **combination of the two**, choosing a fixed interest rate for an initial period and a floating interest rate that will apply from the end of the period with a fixed interest rate until the end of the total repayment period of the loan you choose.

| For example, you can take a loan with a total repayment period of 25 years where the first 10 years will be at a fixed rate and the remaining 15 years at a variable rate.

The **fixed rate **remains unchanged for the period you choose. In this way you enjoy absolute protection from rising interest rates for the period you choose.

The **floating interest rate** consists of the base rate (e.g. 3M Euribor) plus a spread which remains fixed for the duration of the loan. The fluctuation of the floating rate is due to fluctuations in the base rate as it is set on the interbank market. If interest rates rise, your monthly instalment will increase and correspondingly your instalment will decrease if interest rates fall.