Santander, a prominent mortgage lender, has disclosed that over 20% of its first-time homebuyers this year are above the age of 40, with the eldest borrower being 70 years old. The trend of increasing house prices and evolving circumstances has led individuals to delay entering the housing market until later stages of life. Consequently, many first-time buyers are now facing the prospect of carrying mortgages well into their senior years.
Recent data from Santander indicates a growing portion of the mortgage market being dominated by older first-time buyers, with 22% of those purchasing their initial property in 2025 aged over 40, marking an increase from 18% in 2024. While the average age of first-time buyers has been inching closer to 40 in recent years, there has been a notable surge in individuals over 60 purchasing their first homes, showing a 14% rise compared to the previous year.
Santander reported that the oldest first-time buyer this year was 70 years old, surpassing the age of 67 in 2024. The lender imposes a maximum lending age of 75 for capital and interest repayment mortgages and 70 for interest-only mortgages. However, as the number of older borrowers grows, a contrasting trend is observed among younger individuals aspiring to step onto the property ladder.
The proportion of buyers aged 25 and under has significantly declined in the past year, dropping by nearly a quarter from 2024 to 2025. Despite this decline, the youngest first-time buyer in 2025 was only 18 years old.
David Morris, the head of homes at Santander, remarked, “Our recent data demonstrates that it is never too late to achieve your dream of homeownership. This year has been particularly favorable for buyers, with regulatory adjustments instilling renewed confidence in the attainability of owning a home. Whether through family assistance, inherited wealth, or diligent savings over decades to secure a deposit, we are pleased to have assisted numerous first-time buyers spanning different generations.”
Morris added, “Yet, there remains room for further progress. Our data also underscores a concerning disparity in first-time homeownership, as the gap widens between younger and older generations due to the effects of stamp duty modifications and a shortage of housing supply.”
Typically, lenders establish an upper age limit for mortgage eligibility criteria. Alongside escalating property prices, increased life expectancy has extended the age at which people secure mortgages. The age limit is often aligned with the borrower’s age at the mortgage term’s conclusion, which can sometimes extend up to 95 years old.
While obtaining a first-time mortgage in older age is feasible, lenders may impose restrictions on extending the term to lower monthly payments if borrowers require such adjustments.
