Copy article

Newspage RawSource: Aaron Strutt, Trinity Financial

Cheap tracker mortgages starting from 3.99% tempting borrowers away from higher fixed rates

ended 05. October 2026

Mortgage borrowers are increasingly opting for tracker deals following weeks of fixed-rate price hikes.

With average five-year fixes approaching 6%, many homebuyers are looking for shorter-term alternative mortgages to avoid paying more than necessary. Even with a base rate rise or two expected over the next six months, trackers still seem like a good bet for anyone willing to gamble that the base rate will stay low for some time.  

Some of the most competitively priced tracker mortgages are available below 4%, while the cheapest fixed rates start from around 4.80%, often for higher earners with larger deposits. 

Barclays is still offering its market-leading 3.99% two-year tracker, which tracks the base rate plus 0.24%, and it is 1.16% lower than the Barclays 5.15% two-year fix. NatWest's current lowest two-year fix is 5.19%, and its cheapest tracker is 4.10%, which means there is a difference of 1.09%. 

With millions of homeowners facing a repayment shock over the next two years, many are looking for a way to access a cheap deal, even if it is on a variable basis and the rate could rise.  

Most lenders offering competitively priced tracker rates let borrowers switch to a fix at any time with minimal charges, so homeowners can monitor the market and switch to more attractive fixed rates if and when they become available.  

Mind the price gap

  • Barclays cheapest two-year fix is 5.15% and its lowest five-year fix is 5.13%. Barclays two-year tracker is 3.99% is available to its Premier current account holders (0.24% over the base rate). The non-Premier account tracker is 4.15% (0.40% over the Bank of England base rate). 
  • Halifax cheapest two-year fix is 4.90% and five-year fix is 4.89% for Lloyds current account holders. For non-current account holders its two-year fix is  5.10% and the five-year fix is 5.09%. The Halifax two-year tracker 4.06% (0.31% over base rate).   
  • NatWest cheapest two-year fix is 5.14% and lowest five-year fix is 5.03%. It has a 4.10% two-year tracker (0.35% over the NatWest base rate).  
  • HSBC cheapest two-year fix is 5.04% and its cheapest five-year fix is 5.06%. Its lowest two-year tracker is 4.15% (0.40% over the Bank of England base rate).  Its Premier rates are slightly lower at 5.01 for two-years and 5.03% for five-years.
  • Nationwide's cheapest two-year fix is 4.99% and its lowest five-year fix is 5.01%. Nationwide's lowest two-year tracker is 4.09% (0.34% over the Bank of England base rate).                                                                                                          
    Source Trinity Financial

7 responses from the Newspage community

Copy all

Story Source
Copy

Pro
Aaron StruttVerified
Product and Communications Director at Trinity Financial
iContact details are shown to logged-in members. Log in
More borrowers are taking tracker mortgages because they are so competitively priced right now compared to many of the fixes. Some of the banks and building societies are offering trackers that are 1% cheaper than their lowest fixed rates, and when you compare the monthly repayments, it is almost a no-brainer to opt for a tracker while monitoring the mortgage market to see what happens to rates over the next year or two.
Tracker mortgages are also popular because many of them are flexible and they do not have early repayment charges. This means borrowers can swith to a fix if they spot a decent deal they like the look of.
Trackers work well for borrowers with savings, strong affordability and a willingness to accept moving monthly repayments. But they are not for everyone. Anyone worried about their mortgage costs potentially changing regularly should think carefully before giving up the certainty of a fixed rate.
Copy

Pro
Tony SanchezVerified
Founder at Bridging Loan Directory
iContact details are shown to logged-in members. Log in
A lower starting rate is attractive, but “I’ll fix later” still leaves a question: at what price? The fixed deal available when a borrower wants to switch could be more expensive than today’s.

For borrowers refinancing out of bridging finance, the immediate priority may be repaying the short-term loan. But the replacement mortgage also needs to remain affordable if tracker payments rise.

The comparison needs to include fees, early repayment charges and the actual terms for switching. Flexibility has value, but it is not the same as payment certainty.
Copy

Pro
Michelle LawsonVerified
Director at Lawson Financial
iContact details are shown to logged-in members. Log in
Due to the volatility of the fixed rates, borrowers are minded to take trackers now due to the margins. Borrowers are liking the flexibility to switch to a fixed rate later if and when the markets stabilise while benefitting from lower rates now. Sometimes people miss the merits of being product savvy - some are happy to take a gamble while others still like the security a fixed rate brings.
Copy

Pro
Stephen PerkinsVerified
Norwich Mortgage Broker and Managing Director at Yellow Brick Mortgages
iContact details are shown to logged-in members. Log in
When some tracker mortgages are more than 1% cheaper than comparable fixed deals, they deserve serious consideration. A borrower choosing a tracker around 4% instead of fixing above 5% has some headroom before rising rates wipe out that initial saving. The important question isn't simply whether Bank Rate goes up, but by how much, how quickly and for how long.

Trackers will suit borrowers who are comfortable with their payments changing and value flexibility, particularly where there is little or no early repayment charge and they can switch to a fixed deal later. They won't be right for someone whose budget needs absolute certainty, but with the gap between trackers and fixes now this wide, dismissing them simply because rates might rise could also prove expensive.
Copy

Pro
Ross LaceyVerified
Director at Fairview Financial Management
iContact details are shown to logged-in members. Log in
Trackers are definitely an option to consider and in many cases offer immediate savings over an equivalent fixed rate deal. However, we always advise stress-testing the tracker rate against higher BofE base rates to ensure the payments would still be affordable.

Trackers also provide flexibility for those who might have multi part mortgages wanting to use a tracker for one part until the remaining parts come to the end of their fix.
Copy

Platinum
Elliott CulleyVerified
Director at Switch Mortgage Finance
iContact details are shown to logged-in members. Log in
In the wake of fixed rate mortgages rising in price, more and more borrowers are considering tracker products. Due to fixed rates being a prediction of the future market, these type of rates will always increase first and this creates a gap in pricing between trackers and fixed rates. Even though tracker rates will likely rise in the near future, borrowers have been tempted by these rates due to the significant gap of up to 1% in some cases. Even if the baserate was to rise in November as predicted, its likely to be 0.25% rise, and this would mean a tracker product still being cheaper than current fixed rates. It is certainly a risk, as noone can predict the future and rates may continue to increase and there is no guarantee the tracker would remain below the fixed rate on offer to borrowers. However more and more borrowers are considering this gamble as the gap continues to grow.
Copy

Plus
Jamie AlexanderVerified
Mortgage Director at Alexander Southwell Mortgages
iContact details are shown to logged-in members. Log in
The gap between tracker and fixed rates is impossible to ignore right now and clients are noticing it. When Barclays is offering a tracker at 3.99% against a two-year fix at 5.15%, that is a significant difference in monthly payments and more people are asking whether locking in still makes sense.

We are seeing more clients seriously consider trackers than at any point in the last couple of years. The appeal is obvious. Most come with the ability to switch to a fix at any time without penalty, so you are not completely exposed if rates move sharply upward.

The honest conversation though is about risk appetite. A tracker is a bet that rates stay where they are or fall further. If that plays out, you save money. If the base rate rises more than expected, that saving shrinks or disappears. For clients with tight monthly budgets, the certainty of a fixed rate still has real value even at a higher headline rate.