Best mortgage rates · Residential · July 2026

    Best 2-year tracker rates for first-time buyers.

    Variable-rate mortgages that move with the Bank of England base rate — ranked nightly. Worth understanding the payment risk before you compare the headline.

    40+ lender product books Fee & no-fee best buys No signup, no credit check Refreshed nightly
    Refreshed nightly — rates as of 13 July 2026
    Loan to valueLTV = loan ÷ property value. A £50k deposit on a £250k home is 80% LTV.
    LenderInitial rateMonthlyTracks untilThenProduct fee
    1
    L
    Lloyds BankBest rate
    4.08%£1,331on £250,0002 yrs7.24%£1,499See full deal →
    2
    B
    Barclays
    4.13%£1,338on £250,0002 yrs5.74%£999See full deal →
    3
    N
    Nationwide BS
    4.79%£1,431on £250,0002 yrs6.49%None£500 cashbackFree valuationSee full deal →
    4
    S
    Santander UK
    4.85%£1,440on £250,000Jul 20286.50%NoneFree valuationSee full deal →
    5
    N
    NatWest Group
    4.90%£1,447on £250,0002 yrs6.74%NoneFree valuationSee full deal →
    Cheapest with no product feeNationwide BS at 4.79% — £1,431/moView →

    Monthly payments illustrated on a £250,000 repayment mortgage over 25 years; fees not added to the loan. Rates shown are for comparison — full lender criteria apply.

    A tracker mortgage follows the Bank of England base rate plus a fixed margin — so your monthly payment changes whenever the base rate moves. For a first-time buyer this is a materially different kind of risk than on a fix. Most FTBs are at higher LTVs and have stretched affordability at the point of purchase; a base rate rise of even 0.5% adds real money to monthly payments, and there’s no guarantee when that pressure eases. Understanding your payment range — what you’d pay if base rate rose by 1% or 2% — is the right starting point before comparing rates.

    The case for a tracker is real: many carry no early repayment charges, which means you can exit without penalty if the rate environment improves and a fix becomes attractive. At 2 years, the commitment is limited even where ERCs do apply. Trackers also tend to close the pricing gap with fixes in periods when the base rate is expected to fall. But for a first-time buyer on a tight monthly budget, the certainty of a fixed payment often has a value that doesn’t show up in the headline rate comparison.

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    Frequently asked questions

    How these tables work, and how to choose between the deals on them.

    01How much could my payment change on a tracker if base rate moves?
    As a rough guide, on a £250,000 repayment mortgage over 25 years, a 0.5% increase in the base rate adds approximately £60–70 per month to your payment. A 1% rise adds roughly £120–130. The exact figure depends on your balance and remaining term — most lenders show the sensitivity in their key facts illustration. Before choosing a tracker, confirm you could absorb the payment at two or three plausible base rate scenarios.
    02Do tracker mortgages typically have early repayment charges?
    Many trackers are designed to be ERC-free, which is part of their appeal — you can switch to a fix without penalty if rates move against you. Some, particularly on promotional pricing, do carry ERCs, usually lower than on fixed-rate equivalents. Check the product details before selecting on rate alone; an ERC-free tracker with a slightly higher rate may offer substantially better flexibility for a first-time buyer uncertain about the next two years.
    03Are trackers available at 90% or 95% LTV for first-time buyers?
    The highest LTV tracker tiers are thinner than the fixed market. Most tracker availability clusters at 75–90% LTV; at 95% the majority of lenders offer fixes only. Use the LTV filter above to see what’s available at your deposit size — if the tracker table is sparse at your band, the fixed alternatives on this page and the FTB 2-year fixed page are likely to offer more choice.
    04Can I switch from a tracker to a fixed rate mid-deal?
    If your tracker is ERC-free, yes — you can remortgage to a fix at any time without penalty, though you’d need to go through the full application process again. If there is an ERC, the cost of switching depends on how much of the tracker term remains and the charge structure. Some lenders also allow product transfers to their own fixed range, which can be quicker than a full remortgage.

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