- The lowest margin is not the cheapest. Landbay has the lowest margin at Bank Rate +0.29%, but with a 5% fee its true cost over the 2-year period is 6.74% a year.
- Cheapest on true cost: Fleet Mortgages, +1.25% with a 2% fee over 5 years: 5.50% a year, no ERC.
- ERC-free trackers from 6 lenders: Fleet Mortgages, Landbay, LendInvest, Lendco, Paragon, Zephyr Homeloans.
- The catch is the stress rate. The median tracker is stressed at 7.35%, against 6.44% for a 5-year fix, so a tracker can borrow less on the same rent.
Why trackers are back on the table
With fixed rates priced for higher-for-longer, a tracker lets a landlord take any fall in Bank Rate straight away, and many come with no early repayment charge, so they can be swapped onto a fix later without penalty. For brokers the question is not just who has the lowest margin, but who has the lowest margin with the ERC terms, fee and rent test that fit the case.
Why we rank on true cost, not margin
A tracker's margin is only half the price. The arrangement fee is added to the loan, so it carries interest too, and a big fee on a two-year product has only two years to be spread over. We rank every tracker on true cost: interest on the total loan including the fee for the initial period, plus the fee and any exit fee, shown as an average annual rate on a £200,000 loan. It is the same calculation the DAS Source sourcing app uses.
Example: Landbay at +0.29% with a 5% fee costs 6.74% a year over 2 years, against 5.50% for Fleet Mortgages at +1.25% with a 2% fee over 5 years.
Cheapest buy-to-let trackers by LTV
Single residential buy-to-let, the three lenders with the lowest true cost at each LTV:
| LTV | Lender | True cost* | Margin | Fee | Period | Max LTV | ERC | Stress rate |
|---|---|---|---|---|---|---|---|---|
| At 60% LTV | Fleet Mortgages | 5.50% | +1.25% | 2% | 5 yr | 75% | None | 7.00% |
| Landbay | 5.64% | +1.34% | 1% | 2 yr | 75% | None | 7.09% | |
| Paragon | 5.69% | +1.75% | 0.75% | 5 yr | 75% | None | 7.50% | |
| At 75% LTV | Fleet Mortgages | 5.50% | +1.25% | 2% | 5 yr | 75% | None | 7.00% |
| Landbay | 5.64% | +1.34% | 1% | 2 yr | 75% | None | 7.09% | |
| Paragon | 5.69% | +1.75% | 0.75% | 5 yr | 75% | None | 7.50% | |
| At 80% LTV | Kensington | 5.93% | +1.63% | £1,999 | 2 yr | 80% | 1%/1% | 7.58% |
| Molo | 6.64% | +1.24% | 3% | 2 yr | 80% | 2%/1% | 6.99% |
*True cost: average annual cost over the initial period on a £200,000 net loan, with the fee added to the loan and Bank Rate held at 3.75% (the base the sourcing app assumes; check the current Bank Rate). Five-year products spread the fee over more years, so compare periods like for like. Fees are a percentage of the loan unless shown in pounds. Max LTV is of the net loan unless marked gross.
HMO tracker mortgages
| LTV | Lender | True cost* | Margin | Fee | Period | Max LTV | ERC | Stress rate |
|---|---|---|---|---|---|---|---|---|
| At 75% LTV | Fleet Mortgages | 5.91% | +1.65% | 2% | 5 yr | 75% | None | 7.40% |
| Landbay | 5.94% | +1.64% | 1% | 2 yr | 75% | None | 7.39% | |
| Paragon | 6.04% | +2.10% | 0.75% | 5 yr | 75% | None | 7.85% |
Multi-unit freehold block (MUFB) trackers
| LTV | Lender | True cost* | Margin | Fee | Period | Max LTV | ERC | Stress rate |
|---|---|---|---|---|---|---|---|---|
| At 75% LTV | Fleet Mortgages | 5.91% | +1.65% | 2% | 5 yr | 75% | None | 7.40% |
| Paragon | 6.04% | +2.10% | 0.75% | 5 yr | 75% | None | 7.85% | |
| Zephyr Homeloans | 6.31% | +1.79% | 3% | 5 yr | 75% | None | 7.54% |
Trackers with no early repayment charge
An ERC-free tracker is the flexible option: the client can switch to a fix, refinance or sell without a penalty. These lenders have trackers with no ERC on the current panel:
| Lender | Property types | Margins | Lowest true cost* | Max LTV | Initial period |
|---|---|---|---|---|---|
| Fleet Mortgages | HMO, MUFB, Standard | +1.25% to +1.65% | 5.50% | 75% | 5 yr |
| Landbay | HMO, MUFB, Standard | +0.29% to +1.64% | 5.64% | 75% | 2 yr |
| Paragon | HMO, MUFB, Standard | +1.00% to +2.10% | 5.69% | 75% | 2, 5 yr |
| Zephyr Homeloans | HMO, MUFB, Standard | +1.54% to +2.04% | 6.05% | 75% | 5 yr |
| Lendco | HMO, MUFB, Standard | +1.15% to +2.15% | 6.46% | 75% | 2 yr |
| LendInvest | HMO, Holiday Let, MUFB, Standard | +1.69% to +3.19% | 7.10% | 75% | 2 yr |
The catch: how lenders stress-test trackers
Most lenders test a 5-year fix at its pay rate, but test a tracker at a higher, notional rate. That changes the rent needed for the same loan. At 125% cover, per £100,000 borrowed:
| Product | Pay rate | Stress rate | Rent needed a month |
|---|---|---|---|
| Cheapest tracker at 75%, true cost (Fleet Mortgages) | 5.00%* | 7.00% | £729 |
| Cheapest 5-year fix at 75%, true cost (Kensington) | 5.49% | 5.49% | £572 |
So the tracker can have the lower payment and still need about 28% more rent to pass. On a tight rent, the 5-year fix may be the only way to reach the loan the client needs. DAS Source runs each product's own stress rate and cover ratio, so the rent test is right for every lender, not just the headline rate.
When a tracker suits the client
- The client expects rates to fall and wants to benefit straight away.
- They may sell, refinance or restructure within two or three years, so ERC freedom matters.
- The rent comfortably passes the higher tracker stress rate.
- They are comfortable with the payment rising if Bank Rate goes up.
How we built this
Figures come from the DAS Source product database, built from lender rate guides and updated on each reprice (this edition: 7 October 2026). Margins are over Bank Rate. True cost excludes ERCs, application, valuation, legal and broker fees, and any change in Bank Rate. Products with a contractual floor, application fees or portfolio limits carry those terms in the lender's guide.