Santander, a prominent mortgage lender, has reported that over 20% of its first-time homebuyers this year are over the age of 40, with the oldest borrower being 70 years old. The trend of rising house prices and evolving life situations has led some individuals to delay homeownership until later stages. Consequently, many first-time buyers are facing the prospect of carrying mortgages well into their senior years.
Recent data from Santander reveals a notable increase in older individuals entering the mortgage market, with 22% of first-time buyers in 2025 being above 40 years old, up from 18% in the previous year. While the average age of first-time buyers has been nearing 40 in recent times, there has been a significant surge in individuals over 60 purchasing their first properties, marking a 14% increase compared to the prior year.
According to Santander, the oldest first-time buyer this year was 70 years old, as opposed to 67 in 2024. The bank sets a maximum lending age of 75 for capital and interest repayment mortgages, and 70 for interest-only mortgages. Despite the growing number of older borrowers, the opposite trend is observed among younger aspiring homeowners.
The proportion of first-time buyers aged 25 and under has notably decreased over the past year, dropping by nearly a quarter from 2024 to 2025. Notably, the youngest first-time buyer in 2025 was 18 years old.
David Morris, head of homes at Santander, emphasized that achieving homeownership remains achievable at any stage in life. He highlighted regulatory changes that have instilled confidence in buyers, making the dream of owning a home more attainable. Morris acknowledged the role of financial support from family, inheritance, or long-term savings in assisting first-time buyers across various age groups.
However, Morris also pointed out the widening gap in homeownership between younger and older generations, influenced by factors such as stamp duty changes and housing supply issues. Lenders typically establish an upper age limit for mortgage eligibility, considering the borrower’s age at the end of the mortgage term, often extending up to 95 years in some cases. While securing a first-time mortgage at an older age is feasible, restrictions may apply if borrowers need to extend the term to lower their monthly payments.