Is a fixed mortgage always cheaper than a variable mortgage in Ireland?

Not necessarily. Fixed rates offer repayment certainty for a defined period. Variable rates can move up or down. The right choice depends on your risk tolerance, cash buffer, and how long you plan to stay in the property.

What happens when my fixed rate period ends?

When the fixed period ends, your rate typically moves to the lender's standard variable rate (SVR) — currently 4.5%–5.5% in Ireland — unless you switch to a new fixed or variable product before then.

Can overpayments be restricted on a fixed mortgage?

Yes. Most Irish fixed-rate products limit overpayments to 10% of the outstanding balance per year. Exceeding that can incur breakage fees.

Updated 2026-02-25·10 min read

Ready to calculate your own numbers?

Mortgage Calculator

Fixed vs Variable Mortgage — Ireland 2026

A 3.5% fixed rate on €300,000 = €1,501/month guaranteed. A variable rate at 4.0% starting at €1,583 could rise to €1,842 at SVR level (5.5%). Use the Mortgage Calculator to model both scenarios.

Model your mortgage →Stress test guide

Fixed vs Variable — Key Numbers {Y}

Fixed rate: certainty for 2–5 years

A 3.5% fixed rate on €300,000 over 25 years = €1,501/month — guaranteed for the fixed term. No surprises, easy budgeting.

Variable rate: flexibility but rate risk

A variable rate can change. If rates rise from 4.0% to 5.5% (SVR level), the monthly repayment on €300,000 goes from €1,583 to €1,842 — an extra €259/month.

Use the Mortgage Calculator to compare

Model both scenarios in the Mortgage Calculator and apply a +2% stress test to see if your budget survives a rate rise.

1) What fixed gives you: a planning window

A fixed rate locks in your repayment for the fixed period (1–7 years typically). That makes budgeting predictable. The trade-off: overpayment limits (usually 10% of balance/year) and potential break fees if you switch early.

€300,000 at 3.5% fixed for 5 years = €1,501/month — guaranteed.

2) What variable gives you: flexibility and rate risk

Variable rates are typically higher than introductory fixed rates but offer no break fees, unlimited overpayments, and the ability to switch at any time. The downside: rates can rise, increasing your monthly cost.

Stress test: If the variable rate is 4.0% and rises to 6.0% (typical Central Bank stress test), the repayment on €300,000 goes from €1,583 to €1,932 — an increase of €349/month.

3) Comparison checklist

Factor	Fixed	Variable
Repayment certainty	✅ Guaranteed	❌ Can change
Overpayments	Often capped at 10%/yr	✅ Unlimited
Break fees	⚠️ May apply	✅ None
Best for	Tight budget, need certainty	Plan to overpay/switch

Rates shown are typical Irish market ranges for {Y}. Actual rates depend on your LTV, lender, and product choice. Use the Mortgage Calculator for your specific numbers.

Loading Tools

2) What variable gives you: flexibility and rate risk

Factor

Fixed

Variable

Repayment certainty

✅ Guaranteed

❌ Can change

Overpayments

Often capped at 10%/yr

✅ Unlimited

Break fees

⚠️ May apply

✅ None

Best for

Tight budget, need certainty

Plan to overpay/switch