Barclays offering 3.99% tracker rate for mortgages up to £2 million

Which lender has the lowest tracker mortgage rate after Halifax increases best best deal

 

Halifax has increased its lowest tracker mortgage rate, which tracked the current 3.75% Bank of England base rate plus a margin of 0.21%, removing one of the cheapest variable-rate deals available to borrowers.

The change means Barclays currently offers one of the lowest-priced two-year tracker mortgages for eligible homebuyers, with an initial rate of 3.99%. Santander, HSBC, Halifax and Nationwide for Intermediaries also have tracker deals priced close to 4%, although product fees and eligibility rules vary considerably.

Tracker mortgages have become more popular among borrowers seeking an alternative to increasingly expensive fixed-rate deals. However, they are variable mortgages, so monthly repayments can rise as well as fall. The most competitively priced two-year fixes start from around 4.3% and the lowest five-year fixes from 4.4%.

Which lender has the cheapest tracker mortgage?

As of 23 July 2026, some of the lowest two-year tracker or variable mortgage rates for property purchases are:

Mortgage lenders offering leading tracker rates	Initial rate	Deposit	Approximate product and other fees
Barclays - Premier customer rate	0.24%% over the 3.75% Bank of England base rate - 3.99%	40%	£1,104
Santander for Intermediaries	0.28%% over the 3.75% Bank of England base rate -4.03%	40%	£1,224
HSBC for Intermediaries	0.30%% over the 3.75% Bank of England base rate -4.05%	40%	£1,016
Halifax for Intermediaries	0.24%% over the 3.75% Bank of England base rate -4.06%	40%	£1,599
Nationwide for Intermediaries	0.34%% over the 3.75% Bank of England base rate -4.09%	40%	£1,014

 

Barclays therefore currently has the lowest headline tracker rate for eligible homebuyers. The 3.99% deal is available to borrowers with at least a 40% deposit or equity and tracks the Bank of England base rate for two years.

Representative example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a variable rate basis at 3.99% for two years and then on the lender's 5.74% standard variable rate for the remaining 28 years. The 3.99% rate would require 24 monthly repayments of £1,912.12 followed by 336 payments of £2,314.85 The total amount repayable would be £823,911.48. This amount is illustrative and may vary, made up of the loan amount, plus interest (£417,154.85) and £999 (product fee), £80 (final repayment charge), £25 (completion fee). The overall cost for comparison is 5.6% APRC representative.

What are the lowest tracker rates for remortgaging?

The tracker deals available to remortgage borrowers can be slightly different from those offered to purchasers.

Barclays currently has a two-year tracker remortgage rate of approximately 4% for those with a 40% deposit. HSBC follows closely to 4.05%, while Halifax offers a tracker at around 4.05%. Nationwide’s comparable remortgage tracker is approximately 4.15%.

For borrowers considering a five-year tracker, Barclays currently has one of the lowest rates at approximately 4.35%. However, committing to a variable rate for five years creates a longer period of exposure to possible Bank of England base-rate increases.

Why have tracker mortgages become more attractive?

The Bank of England base rate is currently 3.75%. Most tracker mortgages are priced at the base rate plus a set margin, so a mortgage priced at base rate plus 0.24 percentage points would currently have a payable rate of 3.99%. Santander confirmed that its current mortgage range is based on a 3.75% base rate.

Unlike fixed mortgage rates, tracker pricing is not directly determined by swap rates. This can make trackers look more competitive when swap rates rise and lenders increase their fixed-rate mortgages.

Tracker mortgages may therefore appeal to borrowers who expect the base rate to fall or who want to avoid fixing at the current level.

Do tracker mortgages have early repayment charges?

Some tracker mortgages come without early repayment charges, making it easier for borrowers to move onto a fixed deal later. Others impose penalties during the initial tracker period.

This distinction can be particularly important for borrowers choosing a tracker as a temporary option while waiting for fixed rates to improve.

An early repayment charge-free tracker may also suit borrowers who:

• receive large annual bonuses;

• expect to sell their property;

• plan to make substantial mortgage overpayments;

• are due to receive an inheritance or other lump sum; or

• want the freedom to switch onto a fixed rate.

Tracker products can differ substantially, and some deals may contain minimum-rate collars or restrictions on overpayments.

Is the lowest tracker rate always the best deal?

The lowest interest rate does not necessarily produce the lowest overall cost.

A tracker with a £1,499 fee may be less suitable for someone with a relatively small mortgage than a slightly higher rate with no arrangement fee. Conversely, borrowers with larger mortgages may save considerably more through a lower interest rate, even after paying a higher product fee.

Borrowers should compare:

• the initial interest rate;

• arrangement, valuation and legal fees;

• cashback or free legal work;

• early repayment charges;

• permitted overpayments;

• the rate charged after the tracker period;

• affordability rules; and

• the total cost over the expected period of ownership.

Lenders also have different approaches to employed income, bonuses, commission, self-employed applicants, contractors, foreign-currency earnings and large mortgage loans.

Should you choose a tracker or a fixed mortgage?

A tracker mortgage could be suitable for borrowers who are comfortable with fluctuating repayments and believe interest rates may fall. It may also work well for borrowers who value flexibility and can absorb an increase in their monthly payments.

A fixed mortgage may be more appropriate for borrowers who need certainty and would prefer their repayments to remain unchanged for an agreed period.

There is no guarantee that tracker rates will become cheaper. Inflation, economic data and wider geopolitical events could cause the Bank of England to delay rate cuts or increase the base rate.

 

Call Trinity Financial on 020 7016 0790 to secure a larger mortgage loan, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

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