Are tracker mortgages cheaper than fixed rates? Why borrowers are looking at trackers again

by Aaron Strutt

Oct 06 2026

Are tracker mortgages cheaper than fixed rates? Why borrowers are looking at trackers again

Tracker mortgages are attracting more attention as fixed mortgage rates have risen. They are increasingly popular with homebuyers looking to lower their monthly costs, and with homeowners looking to avoid a repayment shock when they remortgage, even if it is on a variable basis and the rate could rise.  

After a series of fixed-rate increases, some of the UK's biggest mortgage lenders are offering tracker mortgages priced noticeably below their comparable two- and five-year fixed deals. In many cases, tracker mortgage rates are around 0.6 to 1.2 percentage points cheaper than fixed rates, depending on the lender, customer eligibility and mortgage product.

The most competitive tracker mortgages are often available to borrowers with larger deposits or higher levels of equity in their homes, typically because lower loan-to-value mortgages can attract cheaper pricing. Borrowers with a 25%, 40% or larger deposit may therefore find some of the biggest differences between tracker and fixed rates. 

Major lenders currently offering competitively priced tracker mortgages include Barclays, Halifax, NatWest, HSBC and Nationwide. 

For borrowers searching for the cheapest tracker mortgage, a two-year tracker mortgage, or wondering whether a tracker mortgage is better than a fixed mortgage, the pricing difference means trackers are increasingly worth considering, particularly if you don't need the security of a fixed deal, especially in these uncertain times.

How much cheaper are tracker mortgages than fixed rates?

Broadly speaking, some of the cheapest tracker mortgages from major banks are currently priced around 4%, while many competitively priced fixed mortgages are around 5% or higher. This means a £350,000 mortgage at 4% over a 30-year term on full capital repayment could cost £1,670.95 each month, rising to £1,878.88 each month on a 5% fixed rate. This difference is £207.93, and we calculated it using our mortgage calculator. 

Borrowers with larger deposits can often access the cheapest tracker pricing, although rates depend on the lender, loan size, property, income, and overall application. 

Based on current pricing, the approximate differences are:

Source: Trinity Financial. These are approximate comparisons based on mortgage pricing available in early October 2026. The lowest rates often target borrowers with larger deposits or more equity. Mortgage rates and lending criteria can change at short notice. 

This means borrowers could potentially start on a mortgage rate around one percentage point lower by selecting a competitive tracker rather than a fixed rate. However, the savings may well be temporary if the Bank of England base rate rises significantly. 

Any initial saving can become particularly significant on larger mortgages, especially where the borrower also has a sizeable deposit and qualifies for a lender's lowest loan-to-value pricing.

Barclays tracker mortgages

Barclays currently has one of the largest gaps between its tracker and fixed mortgage pricing.

For eligible Barclays Premier customers, its tracker is approximately 1.2 percentage points cheaper than its lowest two-year fixed rate and around 1.1 percentage points cheaper than its five-year fix.

The standard Barclays tracker available to non-Premier customers is still approximately one percentage point cheaper than the bank's lowest fixed rates.

The most competitive pricing will often be available to borrowers with lower loan-to-value mortgages and larger deposits.

Why does a larger deposit often get you a cheaper tracker mortgage?

Mortgage lenders generally price loans according to risk.

A borrower putting down a 35% or 40% deposit, for example, is asking the lender to finance a smaller proportion of the property's value than someone putting down 10%.

This lower loan-to-value can result in access to cheaper mortgage products.

That means borrowers with larger deposits, or homeowners with substantial equity when remortgaging, may be able to access some of the most competitive tracker mortgage rates in the market.

However, the lowest rate is not always the cheapest mortgage overall. Product fees, early repayment charges, valuation costs and the flexibility of the deal should all be taken into account.

Tracker mortgage or fixed mortgage: which is better?

There is no single answer.

A tracker mortgage may appeal to borrowers who:

• Have a larger deposit or substantial equity

• Want a lower initial mortgage rate

• Can afford their payments if interest rates rise

• Want the flexibility to switch mortgage products

• Have savings or surplus monthly income

• Do not want to lock into a fixed rate at current levels

A fixed mortgage may suit borrowers who value certainty and want to know exactly what their mortgage payments will be each month.

Aaron Strutt, Product Director at Trinity Financial, says:

"Tracker mortgages are getting much more attention because the pricing difference compared with fixed rates has become difficult to ignore. Across several of the biggest lenders, trackers are around one percentage point cheaper than comparable fixed rates, and some of the cheapest deals are available to borrowers with larger deposits.

"Borrowers with 25%, 40% or more to put down can sometimes access particularly competitive tracker pricing, which can make a substantial difference to the monthly repayment on a larger mortgage. Trackers are not suitable for everyone, though. Borrowers still need to be comfortable that their mortgage payments could increase if the Bank of England raises Base Rate."

Is now a good time to take a tracker mortgage?

Tracker mortgages are arguably more attractive than they have been for some time because of the unusually wide pricing gap with fixed rates.

With Barclays, Halifax, NatWest, HSBC and Nationwide trackers roughly 0.8 to 1.2 percentage points cheaper than some of their fixed-rate alternatives, they are worth comparing carefully.

Whether a tracker is suitable will depend on the mortgage size, income, deposit, attitude towards risk and ability to cope with higher repayments if Base Rate rises.

Trinity Financial's mortgage brokers can compare tracker and fixed mortgages from Barclays, Halifax, NatWest, HSBC, Nationwide and other banks and building societies to establish which option is most appropriate.

Is the Bank of England base rate likely to rise soon?

Potentially, yes. The Bank of England base rate is likely to rise at least once or twice over the next six months, so trackers seem like a good bet for anyone willing to gamble that the base rate will stay low for some time.  In many cases, the base rate will have to rise at least three times before the tracker loses out.

However, if borrowers want to switch to a fix, fixed rates may be higher than the rate they could have secured when they opted for a base-rate tracker, rather than taking one of the two-, three-, or five-year fixed-rate mortgages available previously.   

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

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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