Santander, a prominent mortgage lender, has disclosed that over 20% of its first-time homebuyers in the current year are above 40 years old, with the oldest borrower being 70 years old. The trend towards older first-time buyers is attributed to rising house prices and evolving life circumstances, forcing individuals to delay property ownership. Data from Santander indicates a growing segment 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.
While the average age of first-time buyers has been steadily approaching 40 in recent years, there has been a notable increase in individuals over 60 purchasing their first homes, showing a 14% rise compared to the previous year. Santander has reported that their oldest first-time buyer this year is 70 years old, up from 67 in 2024. The bank enforces 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 proportion of first-time buyers aged 25 and under over the past year, dropping by nearly a quarter from 2024 to 2025. Despite this trend, the youngest first-time buyer this year was 18 years old.
David Morris, the head of homes at Santander, emphasized that achieving homeownership dreams can happen at any age. He noted that this year has been favorable for buyers, with regulatory adjustments instilling confidence that owning a home is attainable. Morris highlighted the importance of various factors like family contributions, inherited wealth, and long-term savings in facilitating homeownership across different age groups.
The disparity in first-time home ownership between younger and older generations is widening, influenced by changes in stamp duty regulations and housing supply constraints. Lenders typically impose an upper age limit for mortgage applicants based on when the mortgage term concludes, which can extend up to 95 years in some cases. While obtaining a first-time mortgage at an older age is feasible, lenders may restrict extending the term for borrowers seeking reduced monthly payments.