When comparing mortgage or consumer loans, you’ll occasionally spot an offer with an unusually low rate that stands out from the rest. Often that’s a combined interest rate - a rate that’s fixed only for an intro period, then switches to variable. This article explains how that works, why the displayed APRC can be misleading, and how to read it correctly before you sign.

In short:

  • A combined rate is fixed only for an intro period (e.g. 3-10 years), then becomes variable (EURIBOR + margin).
  • The displayed rate is often lower than a comparable plain fixed or variable rate, because it only covers the first, cheaper phase.
  • The APRC needs to account for both phases, not just the intro one - otherwise the total cost is understated.
  • To model your own scenario, use the loan calculator and check offers in the mortgage comparison.

How a combined interest rate works

A loan with a combined (two-phase) interest rate has two separate periods:

  • Intro period - the rate is fixed and known in advance, for example 3.10% for the first 36 months.
  • Post-intro period - the rate becomes variable and is calculated as a reference rate (most commonly 6-month EURIBOR) plus a bank margin set out in the contract. How a EURIBOR change then feeds into the payment is explained in EURIBOR 2026.

Crucially, you know the post-intro margin at signing, even though you obviously don’t yet know what EURIBOR itself will be at that point. The bank’s offer must always state both the length of the intro period and the margin that applies afterward.

Why banks offer combined rates

A combined rate is marketing-friendly for the bank, since it can advertise a lower headline number than a plain fixed rate for the same term would allow. For the borrower it has a real upside too - a few years of predictability at a cheaper price - but one important limit: once the intro period ends, you’re exposed to the same EURIBOR-rise risk as on a plain variable loan.

The trap: when the displayed APRC doesn’t tell the whole story

When comparing offers, the APRC (annual percentage rate of charge) is used as the main total-cost indicator - see EOM: why your bank won’t tell you about it for more on that. With a combined rate, though, the APRC calculation can be a trap if it’s done as though the intro fixed rate applied for the entire loan term.

While reviewing our own data, we ran into exactly this case: on a EUR 150,000 loan over 240 months (20 years), the intro fixed rate was 3.10% for the first 36 months. Calculated as though that rate applied for the whole term, the APRC came out at roughly 3.25%. Once we corrected the calculation to account separately for the intro phase and the later variable phase (EURIBOR + margin), the actual APRC was roughly 3.86% - almost half a percentage point higher. At that amount and term, the gap in total repayment came to nearly EUR 11,700. That’s exactly why FinPortal’s comparison always prices a combined-rate offer in two phases, not just off the intro rate.

How to spot a combined rate in the comparison

In the mortgage comparison and consumer loan comparison, such offers are flagged with an “intro rate” badge and a ‡ mark next to the rate. That means the displayed rate applies only during the intro period, while the payment, total repayment and APRC shown in the table already account for both phases of the loan, not just the first one.

What to ask the bank before choosing a combined rate

  • How long does the intro, fixed period last - in months or years?
  • What margin applies over the reference rate (usually EURIBOR) once the intro period ends?
  • Does the written offer’s APRC cover both phases together, not just the intro one?
  • What happens if you want to repay early or refinance right before the intro period ends - do any special conditions apply then?
  • How would your payment change if EURIBOR rose by 1 percentage point right as you moved into the second phase? Check this in the loan calculator.

Combined, fixed or variable - which should you choose?

FinPortal doesn’t give a general recommendation on which is better - it depends on how long you plan to keep the loan and how much uncertainty you’re willing to accept in the later payment. The general framework for that decision, including the fixed-vs-variable comparison, is covered in Loan 2026: how to choose the right mortgage. It’s best to treat a combined rate as a third option alongside fixed and variable, not as an automatically better deal - what matters is comparing the full APRC across both phases, not just the intro months.