Santander, a prominent mortgage lender, has reported that over 20% of its first-time homebuyers this year are above the age of 40, with the oldest borrower being 70 years old. This trend is attributed to rising house prices and evolving circumstances, leading individuals to enter the property market later in life. Consequently, many of these older first-time buyers may carry mortgages well into their senior years.
Recent data from Santander indicates a notable increase in older individuals entering the mortgage market, with 22% of first-time buyers in 2025 aged over 40, up from 18% in the previous year. The average age of first-time buyers has been gradually approaching 40, with a substantial 14% rise in those over 60 purchasing their initial property compared to the previous year.
Santander disclosed that their oldest first-time buyer this year was 70, up from 67 in 2024. The lending age limits set by the bank are 75 for capital and interest repayment mortgages and 70 for interest-only mortgages. While the number of older borrowers is on the rise, the opposite trend is observed among younger individuals aspiring to own homes.
The percentage of buyers aged 25 and under has significantly declined in the past year, dropping by nearly a quarter from 2024 to 2025. Despite this decrease, the youngest first-time buyer in 2025 was 18 years old.
David Morris, the head of homes at Santander, emphasized that achieving homeownership dreams can happen at any age. He highlighted the impact of regulatory changes, providing buyers with confidence in attaining homeownership. Morris acknowledged various means through which first-time buyers secure properties, such as family gifts, inherited wealth, or long-term savings for a deposit.
However, Morris noted a growing gap between younger and older generations in accessing homeownership due to factors like stamp duty changes and limited housing supply. Lenders typically impose maximum age limits for mortgage applicants, considering the borrower’s age at the end of the mortgage term, which can extend up to 95 in certain cases.
While obtaining a first-time mortgage at an older age is feasible, lenders may impose restrictions on extending the mortgage term if borrowers need to lower their monthly payments. This trend is influenced not only by higher property prices but also by increased life expectancy, prompting individuals to pursue mortgages at more advanced stages of life.