Santander, a prominent mortgage lender, has reported that over 20% of its first-time homebuyers in the current year are above the age of 40, with the oldest borrower being 70 years old.
Due to escalating house prices and changing life circumstances, individuals are finding themselves needing to wait longer to step onto the property market. This trend of older first-time buyers indicates that many will be carrying mortgage debt well into their later years.
Recent data from Santander reveals a growing trend of older individuals entering the mortgage market, with 22% of first-time buyers in 2025 being over 40 years old, up from 18% in the previous year. Notably, the average age of first-time buyers has been inching closer to 40, with a significant 14% rise in individuals over 60 purchasing their first homes compared to last year.
Santander disclosed that the oldest first-time homebuyer this year was 70, compared to 67 in 2024. The lender enforces a maximum lending age of 75 for capital and interest repayment mortgages and 70 for interest-only mortgages.
While the number of older borrowers is on the rise, a contrasting trend is observed among younger aspiring homeowners. The percentage of buyers aged 25 and under has notably declined over the past year, dropping by nearly a quarter from 2024 to 2025. Nevertheless, the youngest first-time buyer this year was an 18-year-old.
David Morris, head of homes at Santander, emphasized the importance of realizing homeownership dreams at any stage of life. He highlighted the impact of regulatory changes, increasing confidence among buyers that owning a home is achievable. Morris noted the diverse paths individuals take to secure a home, whether through family assistance, inherited wealth, or diligent savings over the years.
However, Morris pointed out a growing gap in first-time home ownership between younger and older generations, influenced by factors such as stamp duty changes and housing supply shortages. Lenders typically set an upper age limit for mortgage applicants based on when the mortgage term ends, often allowing borrowing until the age of 95.
While securing a first-time mortgage in older age is feasible, lenders may impose restrictions on extending the mortgage term for those seeking lower monthly payments.