Your easy guide to Fixed vs Variable Rate Mortgages

Choosing a mortgage is a big decision, but it doesn’t need to feel complicated. Most borrowers start by comparing two main options: Fixed Rate and Variable Rate mortgages. Both have their own advantages, and the right choice really depends on what matters most to you. Here’s a straightforward guide to help you understand the difference.

The benefits of a Fixed Rate Mortgage

A Fixed Rate Mortgage does exactly what it sounds like: your interest rate will stay the same for an agreed period of time. Because your repayments stay unchanged, it’s much easier to plan your monthly budget. While fixed rates can be a little higher, a predictable payment can give you some extra peace of mind.

While a fixed interest rate can provide greater certainty regarding repayments, it also means that if you pay off your mortgage early you may be subject to an early redemption fee. However, the maximum early redemption fee will not be any more than 2% of the remaining balance in the first 10 years, reducing to 1.5% of your remaining balance after that.

Another big advantage you get with an Avant Money Fixed Rate Mortgage is the new 2% cashback*. Get 2% cashback when you draw down a new mortgage with a 3, 4, 5, 7 or 10 year fixed rate (does not include One Mortgage**, Flex Mortgage and 4-year High Value Mortgage). For example, borrow €400,000 and receive €8,000 cashback within two months of drawdown. This cashback can give you a nice boost at a time when every euro seems to be that bit more valuable. You might be thinking about doing some work to your home, changing your car, or even taking a nice break to relax after moving.

Fixed rates might be the right for you if you:

• Value certainty over getting the lowest rate possible
• Predictable monthly costs
• A clear budgeting path for the years ahead

The benefits of a Variable Rate Mortgage

A Variable Rate Mortgage gives you a little more flexibility, which many people really value. Because the rate can move over time, your repayments aren’t locked in and can change. The interest rate could go up or down and if it goes down, your monthly repayments will also reduce. The same is true that if it were to rise, your repayments would also rise.

Some people like variable rates because you’re not tied in. If you are one of these people, why not take a look at Avant Money’s Flex Mortgage. If you’re interested in how exactly the Flex Mortgage works, check out our guide to Flex Mortgage.

Variable rates are great if you:

• Want the freedom to change your mortgage as your plans develop
• Prefer to keep your options open
• Are comfortable with repayments that may rise or fall over time

So which one is right for you – Variable or Fixed Rate Mortgage?

Both options have their strengths. Ultimately, you should consider all of the information available and make an informed decision based on your own situation.

*Cashback is available on a New or Top-Up Mortgage drawn down between 1 January 2026 and 31 December 2026. For phased drawdown mortgages, the cashback amount will be calculated based on the initial mortgage drawdown amount.

**1% cashback also available on a One Mortgage.

Lending criteria and terms and conditions apply. The monthly repayment on a 20-year mortgage with Loan to Value (LTV) greater than 80% with variable borrowing rate of 3.95% on a mortgage of €100,000 is €603.35 for 240 months. Total amount repayable is €145,028.74. If interest rates increase by 1% an additional €53.85 would be payable per month. For this example, Annual Percentage Rate of Charge (APRC) of 4.0% applies and consists of variable borrowing rate of 3.95%, valuation fee of €185, and security release fee of €40.

LTV is the amount borrowed as percentage of the value of your home. Information correct at 25th June 2026 and subject to change. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income (4.0 for first time buyers) and 90% of the property value (80% for switchers). Applications from residents of ROI over the age of 18 only, and subject to repayment capacity, financial status and property valuation. We require property and life insurance.

The following warning applies in the case of the Flex Mortgage which is a Benchmark Variable Rate loan:

Bankinter S.A. trading as Avant Money, is authorised by the Banco de Espana in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.