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 oldest borrower being 70 years old. The trend of increasing house prices and evolving life circumstances is causing individuals to delay purchasing their first homes. Consequently, many are entering into mortgages later in life.
Recent statistics from Santander reveal a growing segment of older first-time buyers in the mortgage market, with 22% of individuals buying their initial property in 2025 being over 40 years old, which is an increase from 18% in 2024. While the average age of first-time buyers has been approaching 40 in recent years, there has been a notable surge in individuals over the age of 60 purchasing their first homes, marking a 14% rise compared to the previous year.
According to Santander, the oldest first-time buyer this year was 70 years old, up from 67 in 2024. The lender has set a maximum lending age of 75 for capital and interest repayment mortgages, and 70 for interest-only mortgages. Concurrently, there has been a decline in younger first-time buyers, with the proportion of buyers aged 25 and under decreasing significantly from 2024 to 2025. Despite this, the youngest first-time buyer in 2025 was 18 years old.
David Morris, head of homes at Santander, emphasized that achieving homeownership is achievable at any age. He mentioned that the current year has been favorable for buyers due to regulatory adjustments that have boosted confidence in owning a home. Morris highlighted the various ways individuals are realizing their homeownership dreams, whether through family contributions, inherited wealth, or diligent savings over the years.
Moreover, Morris acknowledged the widening generational gap in first-time home ownership, attributing it to factors such as changes in stamp duty and housing supply shortages. He emphasized the importance of addressing this disparity to ensure equitable opportunities for individuals across different age groups.
Typically, lenders impose an upper age limit for mortgage eligibility, considering the age borrowers will be at the end of the mortgage term, which can extend up to 95 in some cases. While securing a first-time mortgage at an older age is possible, lenders may limit term extensions if borrowers seek to reduce monthly payments to manage their financial obligations effectively.