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. This trend is attributed to rising house prices and changing life circumstances, forcing individuals to delay homeownership until later stages in life. Consequently, many first-time buyers are facing the prospect of carrying mortgages well into their older years.
Recent data from Santander indicates a growing prevalence of older individuals in the mortgage market, with 22% of first-time buyers in 2025 aged over 40, marking an increase from 18% in the previous year. The average age of first-time buyers has been gradually approaching 40, with a notable surge in individuals over 60 purchasing their initial property, showing a 14% rise compared to the previous year.
The oldest first-time buyer recorded by Santander 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. Conversely, there has been a decline in the number of younger buyers, with the proportion of buyers aged 25 and under decreasing by nearly a quarter from 2024 to 2025. Despite this, the youngest first-time buyer this year was 18 years old.
David Morris, the head of homes at Santander, emphasized that achieving homeownership remains achievable at any age. He noted a significant surge in buyer activity this year, driven by regulatory changes that have instilled confidence in aspiring homeowners. While acknowledging the widening disparity between younger and older generations in accessing homeownership, Morris highlighted the need for further initiatives to address this issue amidst market challenges such as stamp duty changes and supply limitations.
Lenders typically enforce an upper age limit for mortgage applicants as part of their eligibility criteria. Factors such as escalating property prices and increased life expectancy have contributed to individuals securing mortgages at later stages in life. The age limit often aligns with the borrower’s age at the end of the mortgage term, which can extend up to 95 years in some cases. Although acquiring a first-time mortgage at an older age is feasible, lenders may impose restrictions on extending the mortgage term to accommodate lower monthly payments.
