Do not choose a fixed mortgage now

Euribor at highs.It is expected to close in September at a value close to 3.1%, the highest since 2024. In this context, what is better: to request a fixed or variable mortgage?Firstly, in a 20 or 30-year mortgage, anything can happen. We must assume that we are also making a financial risk decision. With the current Euribor values, fixed-rate mortgages are between 3% and 4%, including bonuses. These are high rates to maintain for such a long time.As a piece of advice, we should take advantage of the fact that the interest rate in the first year of a mortgage is usually lower and that the more demanding conditions may affect us starting from the second year. The Euribor, like interest rates, has a cyclical behavior. Even if we think now that it will only go up, at some point it will end up going down. For this reason, today I think that a variable or mixed mortgage, with a fixed rate for 3 or 5 years, can be an interesting option.The most normal thing –and I don't have a crystal ball– is that the Euribor ends up falling in the coming months or years. Therefore, getting locked in for decades with a 4% fixed rate could make us pull our hair out. However, this very uncertainty is what gives value to a fixed-rate mortgage: it protects us against a new rise in rates.With a high Euribor, it is common for financial institutions to enter into a war to attract new mortgage clients. We must negotiate to the maximum. And, if we opt for a fixed mortgage, we can also negotiate clauses that allow us, later on, to reduce the interest rate or pay off part of the outstanding capital with the minimum possible cost.Because when we sign a mortgage, we not only decide how much we will pay: we decide what risk we are willing to assume. Decisions based on emotions make us decide the exact opposite of financial rationality.