Interest Rate Fixation
The period during which a loan's interest rate stays fixed before it is reset to current market rates.
Rate fixation locks your interest rate, and therefore your payment, for a defined period, common in many European mortgage markets. When the fixation ends, the bank offers a new rate based on current market conditions, which can be higher or lower than before. A longer fixation gives payment certainty but usually starts at a slightly higher rate, while a shorter one is cheaper now but riskier if rates rise. The end of a fixation is the natural moment to negotiate or refinance. Assetli's mortgage tools help you plan for the payment change when your fixation expires.
Example
Your mortgage is fixed at 3% for five years. When the fixation ends and market rates are 5%, your monthly payment jumps unless you refinance elsewhere.
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Related terms
Mortgage
A long-term loan secured by real property, used to finance the purchase of a home or investment property, typically repaid over 15–30 years.
Interest Rate
The percentage charged on borrowed money or earned on deposited/invested money, expressed as an annual rate.
Refinancing
Replacing an existing loan with a new one, usually to secure a lower interest rate or better terms.
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Transaction Categorization
The process of classifying financial transactions into categories like groceries, rent, or entertainment to analyze spending patterns.
Recurring Transactions
Transactions that repeat at regular intervals — subscriptions, loan payments, salary deposits — essential for predicting future cash flow.
Bank Synchronization
The automated process of importing transactions from bank accounts into a financial management tool, either through API connections or file imports.
APR (Annual Percentage Rate)
The annualized cost of borrowing expressed as a percentage, including interest and mandatory fees, used to compare loan products.
IBAN
International Bank Account Number, a standardized format for identifying bank accounts across borders.
Overdraft
A credit facility that lets you spend more than your account balance, up to an agreed limit, for a fee or interest.