A two-dimensional magnetic recording (TDMR) read head includes a lower reader and an upper reader. Each of the lower reader and the upper reader may have a dual free layer (DFL) magnetic tunnel junction structure having first and second free layers located between lower and upper shields. A synthetic antiferromagnetic (SAF) structure is located on a side of each magnetic tunnel junction. A sidewall insulating layer is located between the lower soft bias layer of the SAF structure and the first free layer. The sidewall insulating layer can have a reduced height such that an upper soft bias layer of the SAF structure is in direct contact with a sidewall of the second free layer, or the upper portion of the sidewall insulating layer located between the upper soft bias layer of the SAF structure and the sidewall of the second free layer has a reduced thickness.