Barclays and Halifax both offering two-year tracker mortgages at 3.96%

by Aaron Strutt

Apr 28 2026

Barclays and Halifax are offering two-year trackers at 3.96%

Barclays is the latest bank to make changes to its tracker-rate mortgages by launching a two-year tracker priced at 3.96%, which is 0.21% above the Bank of England base rate.

Halifax has been offering the same rate to borrowers for quite some time, and it has undercut the current rate of fixed mortgages.

Barclays new tracker rate is available to its higher-earning premier customers buying a property, and it has a £999 product fee. Applicants will need a 25% deposit to qualify, and the minimum loan size is £5,000, with a maximum loan size of £2 million. The mortgage has no early repayment charges, giving borrowers the flexibility to switch to a fixed rate at any time. 

To qualify for Barclays Premier Banking, a customer must have a gross annual income of at least £75,000 paid into a Barclays current account, or at least £100,000 in savings or investments with Barclays.

Halifax's two-year tracker rate is 3.96%, 0.21% above the current 3.75% Bank of England base rate, with no early repayment charges and an arrangement fee of £1,499. Applicants must have a 40% deposit to qualify and pass a credit check at the time of application. The arrangement fee is higher for mortgages over £1 million.

Representative Example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a 3.96% tracker rate for two years and then on a variable rate of 7.24% for the remaining 28 years, would require 24 monthly repayments of £1,905.99 followed by 335 monthly repayments of £2,687.21. The total amount repayable would be £947,965.10. This amount is illustrative and may vary, made up of the loan amount, plus interest (£549,377.76) and £1,499 (product fee), £50 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.9% APRC representative.

What is likely to happen to the Bank of England base rate?

Mortgage market participants expect the Bank of England base rate to remain at 3.75% for April, but say a rise should not be ruled out. In the last BoE Monetary Policy Committee meeting in March, members voted unanimously to keep base rate at 3.75%. The decision to hold base rate came as most MPC members decided the inflationary impact of the war in the Middle East made cutting rates too risky.

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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