Santander, a prominent mortgage lender, has reported that over 20% of its first-time homebuyers this year are above the age of 40, with the eldest borrower being 70. This trend is attributed to the rising cost of real estate and evolving life circumstances, prompting individuals to delay their entry into the property market. Consequently, many are now facing the prospect of carrying mortgages well into their later years.
Recent data from Santander indicates a growing proportion of older individuals entering the mortgage market, with 22% of first-time homebuyers in 2025 aged over 40, compared to 18% in 2024. Notably, there has been a significant increase in the number of individuals over 60 purchasing their first property, marking a 14% rise from the previous year.
Santander disclosed that their oldest first-time buyer in 2025 was 70 years old, up from 67 in 2024. The lending institution imposes an upper age limit of 75 for capital and interest repayment mortgages and 70 for interest-only mortgages. While the number of older borrowers is on the rise, there is a contrasting decline in younger individuals aspiring to own a home.
The percentage of buyers aged 25 and under has dropped substantially from 2024 to 2025, witnessing a nearly 25% decrease. Despite this trend, the youngest first-time buyer this year was just 18 years old, underscoring a diverse age range in the property market.
David Morris, the head of homes at Santander, emphasized that achieving homeownership remains achievable regardless of age. He highlighted the impact of regulatory changes that have bolstered buyer confidence in attaining property ownership. Morris acknowledged the varied means through which individuals secure their deposits, whether through family assistance, inherited wealth, or diligent savings over time.
However, Morris also acknowledged the widening gap in homeownership between younger and older generations, attributing it to factors like changes in stamp duty regulations and housing supply shortages. Lenders typically set 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 securing a first-time mortgage at an older age is feasible, lenders may impose restrictions on extending the term to accommodate reduced monthly payments for borrowers. This dynamic reflects the evolving landscape of property ownership and the financial considerations that come with obtaining a mortgage later in life.