New data from high street bank Santander has revealed a dramatic shift in the UK property market, with a significant rise in older individuals stepping onto the housing ladder for the first time.
The Rise of the Older First-Time Buyer
Santander's figures show that more than one in five, or 22%, of its first-time buyers in 2025 are aged over 40. This marks a notable increase from just 18% in 2024. While the average age has been creeping towards 40 for several years, the most striking surge has been among the over-60s. The number of people in this age group taking out a first-time mortgage has jumped by 14% compared to the previous year.
The lender confirmed that its oldest first-time buyer so far this year was 70 years old, surpassing the previous record of 67 set in 2024.
What's Driving the Trend?
Experts point to several factors forcing people to postpone homeownership until later in life. Rising property prices are a primary culprit, making it increasingly difficult to save for a deposit. Changing personal circumstances and increased life expectancy are also contributing, meaning some people are only able to consider buying a home in their later decades.
David Morris, head of homes at Santander, commented: “Our recent data shows that it is never too late to realise your homeownership dream. Whether buying with family gifts, relying on inherited wealth or simply saving across decades to secure a deposit, we’re pleased to have helped so many first-time buyers across the generations.”
Consequences for Younger Buyers and Older Borrowers
This trend has a flip side for younger generations. As older buyers increase their market share, the proportion of first-time buyers aged 25 and under has fallen sharply by almost a quarter from 2024 to 2025. Santander's data highlights a growing disparity in home ownership opportunities between younger and older generations.
For the older borrowers themselves, taking on a large mortgage later in life carries significant financial implications. Many will be saddled with mortgage repayments well into old age. Lenders typically have upper age limits for mortgages; Santander, for instance, has a maximum lending age of 75 for capital and interest repayment mortgages.
While it is possible to secure a mortgage at an older age, borrowers must carefully consider their long-term financial stability, as lenders may impose restrictions on extending the term to reduce monthly payments.
