Santander, a prominent mortgage lender, has reported a notable trend where 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 evolving circumstances, individuals are finding themselves entering the property market later in life. This shift is leading to a scenario where many first-time buyers will carry mortgages well into their senior years.
Recent data from Santander indicates a rising proportion of older individuals entering the mortgage market for the first time. In 2025, 22% of first-time buyers were over 40 years old, up from 18% in the previous year. Moreover, there has been a significant increase in the number of individuals over 60 purchasing their first property, showing a 14% rise compared to the previous year.
Santander disclosed that their oldest first-time buyer this year was 70 years old, compared to 67 in 2024. The lender imposes 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, the trend is opposite for younger aspiring homeowners. The percentage of buyers aged 25 and under has markedly decreased from 2024 to 2025. Nevertheless, the youngest first-time buyer this year was 18 years old.
David Morris, head of homes at Santander, emphasized that achieving homeownership remains achievable at any age. He highlighted that this year has favored buyers, with regulatory adjustments instilling confidence in prospective homeowners. Morris acknowledged various avenues such as family assistance, inheritances, or long-term savings that have enabled numerous generations to fulfill their homeownership dreams.
However, Morris noted a growing gap in first-time home ownership between younger and older generations, attributed to stamp duty changes and housing supply challenges. Lenders typically set an upper age limit for mortgage eligibility, considering factors like life expectancy and the borrower’s age at the end of the mortgage term, which can extend up to 95 years in some cases.
While obtaining a first-time mortgage at an older age is feasible, lenders might restrict term extensions if borrowers seek to lower their monthly payments, reflecting the evolving dynamics of the mortgage market.