Fixed rate mortgages are usually mortgages, which hold a fixed interest rate for a particular period of time. When this fixed period of time ends, the mortgage holder is required to pay a variable rate of interest for the rest of the mortgage. This time of mortgage usually also comes with an arrangement fee.
There may also be an early redemption charge or ERC on fixed rate mortgages, and may extend passed the fixed rate term. This occurs when a mortgage is paid off or changed during the fixed rate period. This means that if your fixed rate is for three years and you pay your mortgage off in two if you have an ERC you may be required to pay anywhere from the remaining term of your fixed rate to five years of a variable interest rate. Check to see if an ERC applies with your lender before choosing a fixed rate mortgage.
There are benefits however, fixed rate mortgages allow you to budget with greater ease and work well if you are expecting the interest rate to rise in future years rather than decrease. It is important to check out multiple terms and lenders before making a decision.