One in Five Mixed-Rate Mortgages From 2023 Was Renegotiated as Its Fixed Period Ended, and Most Borrowers Have Yet to Reach That Point

About one in five mixed-rate home loans signed in 2023 was renegotiated around the moment its fixed-rate period ended and the loan switched to Euribor. That is the first look the Bank of Portugal has published at what borrowers do when their fixed period runs out, and Público put the figures back in front of households on Tuesday. The central bank's numbers, in its report on the banking system for the second quarter of 2026 (published on 24 September), cover 2023 mixed-rate contracts that had moved to a variable rate by March 2026. In about 40 percent of the renegotiations, the rate appears to have been fixed again for at least two more years.

The bank calls this "preliminary evidence" and urges caution. Most mixed-rate contracts signed since 2023 had not yet reached the end of their fixed period by March, so the sample is small. Many more borrowers are about to reach that switch.

Why so many loans face the same moment

Mixed rates went from about 10 percent of new mortgage lending between 2019 and 2021 to 80 percent in the first half of 2026, according to the Bank of Portugal. Initial fixed periods have shrunk to a median of about two years. In 2025, the central bank notes, most Portuguese loans were fixed for one to five years, while in several other euro area countries fixed periods of more than ten years are common. Portuguese borrowers are therefore exposed to Euribor much sooner. As we reported in September, mixed-rate loans now outnumber variable ones in the stock of mortgages too. DECO PROteste, citing Bank of Portugal data for August, puts the share of new loans at 87 percent.

The study has a finding that matters for immigrants: where at least one borrower is a foreign national, the probability of choosing a mixed rate is about 10 percentage points higher, all else being equal. Those borrowers also tend to choose longer fixed periods.

Público also reports that the big banks are now competing hard for mixed-rate business, offering temporary spread exemptions, waived upfront fees and cashback on purchases, but only to customers who take other products as well.

What changes when the fixed period ends

Unless the contract is changed, the rate becomes Euribor plus the agreed spread. Under the Bank of Portugal's rules on mortgage interest rates, the index can only be revised at its own term (a six-month Euribor every six months), using the average of the previous month's daily fixings. The six-month Euribor was 2.970 percent on 16 October, against 2.105 percent at the start of the year, according to euribor-rates.eu; the twelve-month rate was 3.215 percent. October brought the steepest rise in payments in three years.

What you can do

• Renegotiate. A new fixed period, a different spread or a longer term needs the bank's agreement. The Portal do Cliente Bancário says banks cannot charge fees for a renegotiation, and cannot make one conditional on buying other products.
• Move the loan. A transfer means repaying in full and taking a new loan elsewhere. The rules say your current bank must send the new one the details it needs within 10 working days. Early repayment fees are capped at 0.5 percent of the amount repaid on variable-rate contracts and 2 percent on fixed-rate ones; parliament has voted to scrap the variable-rate fee.
• Check the date. Your contract states when the fixed period ends. Ask for offers a few months ahead and compare them on the TAEG, the total annual cost figure, not just the headline rate.