Santander, a prominent mortgage lender, has reported a notable trend where over 20% of their first-time homebuyers in the current year are above the age of 40, with the eldest borrower being 70 years old.
The real estate market has seen a shift due to increasing house prices and evolving circumstances, causing individuals to delay their entry into homeownership until later stages of life. Consequently, a growing number of older individuals are now entering the mortgage market, with 22% of first-time buyers in 2025 being over 40 years old, up from 18% in the previous year.
While the average age of first-time buyers has been edging closer to 40 in recent years, there has been a significant rise in the number of individuals over 60 purchasing their first property, showing a 14% increase compared to the previous year.
Santander disclosed that their oldest first-time buyer this year was 70 years old, an increase from 67 in 2024. The bank imposes age limits for different mortgage types, with a maximum lending age of 75 for capital and interest repayment mortgages and 70 for interest-only mortgages.
Conversely, the data suggests a decline in the proportion of younger buyers under the age of 25, dropping by nearly a quarter from 2024 to 2025. Nonetheless, the youngest first-time buyer this year was 18 years old.
David Morris, head of homes at Santander, emphasized that achieving homeownership remains achievable at any age. Regulatory changes have instilled confidence in buyers, making homeownership more attainable through various means such as family gifts, inherited wealth, or long-term savings for a deposit.
Despite the positive trends, Morris pointed out a widening gap between younger and older generations in terms of homeownership due to factors like stamp duty changes and limited housing supply. Lenders typically set age limits 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 have restrictions on extending the term for borrowers seeking to lower their monthly payments.