Santander, the mortgage lender, has reported that over 20% of its first-time homebuyers in 2025 are above the age of 40, with the oldest borrower being 70 years old. The trend of rising house prices and changing life circumstances is causing individuals to delay homeownership until later stages in life. Consequently, many first-time buyers are facing the prospect of carrying mortgages well into their elderly years.
Recent data from Santander reveals a growing trend of older individuals entering the mortgage market, with 22% of first-time homebuyers in 2025 aged over 40, up from 18% in the previous year. Notably, there has been a significant increase in individuals over the age of 60 purchasing their first property, marking a 14% rise from the previous year.
Santander disclosed that the oldest first-time buyer this year was 70 years old, compared to 67 in 2024. The bank sets a maximum lending age of 75 for capital and interest repayment mortgages and 70 for interest-only mortgages.
Conversely, the number of younger first-time buyers has declined, with a notable decrease in buyers aged 25 and under from 2024 to 2025. Despite this trend, the youngest first-time buyer this year was just 18 years old.
David Morris, head of homes at Santander, emphasized that achieving homeownership is achievable at any age. He highlighted the current favorable conditions for buyers, attributing the trend to regulatory changes that have instilled confidence in aspiring homeowners. However, Morris also acknowledged the widening gap between generations in terms of homeownership, citing challenges such as stamp duty changes and limited housing supply.
Lenders typically establish an upper age limit for mortgage applicants based on the age at which the mortgage term concludes, often extending up to 95 years old. While obtaining a first-time mortgage at an older age is feasible, lenders may impose restrictions on extending the mortgage term to accommodate lower monthly payments.
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