Rise of first-time boomers! Spike in over 60s finally getting on the property ladder revealed by major bank
Older first-time buyers are becoming much more common, and there has even been a spike in those in their 60s and beyond getting on the property ladder, according to a major bank.
Santander said the oldest first-time buyer it gave a mortgage to in the past year was aged 70, and the proportion of those aged over 60 had spiked by 14 per cent since 2024.
More than a fifth of first-time buyers (22 per cent) are now over the age of 40, the lender said, compared to 18 per cent last year.
Conversely, buyers under 25 have fallen sharply in the last year, down by almost a quarter (23 per cent).
This is despite the fact it is now easier for many to get a larger mortgage.
There have been efforts from lenders to increase the amount first-time buyers can borrow, with some banks now offering them up to six times their salary on a mortgage.
This was possible because Chancellor Rachel Reeves enabled banks to loosen their rules.
On the ladder… at last: Santander said it helped one 70-year-old secure a mortgage this year, and that applicants aged over 60 were also on the rise (stock image)
Why are first-time buyers getting older?
House prices remain out of kilter with earnings. Office for National Statistics data shows that only 9.1 per cent of local authorities in the UK had house prices which were less than five times the average worker’s disposable income.
It is also possible that homes for first-time buyers are increasing more rapidly than other types of property.
Recent data from Zoopla showed house prices have climbed 2.4 per cent for first-time buyers in the last year – far above the average 1.3 per cent across the country.
Other challenges include stamp duty, which increased in April after Labour opted not to increase a tax break that had been in place since 2022.
Under current rules, a home mover buying a £300,000 property pays £5,000, someone buying an £600,000 home pays £20,000 and someone buying a £1million home pays £43,750.
Mortgage rates, while falling, remain elevated compared to pre-Covid levels. The average two-year fix today is 4.93 per cent according to Moneyfacts, while it was 1.99 per cent in July 2020.
David Morris, head of homes at Santander, said: ‘Our data highlights a growing disparity for first-time home ownership, with the gap widening between younger and older generations as the market grapples with the impact of stamp duty changes and a lack of supply.’
Others called for more homes to be built, which they said could make housing more affordable because it would reduce competition in the market.
Andrew Montlake, chief executive at mortgage broker Coreco, said: ‘That more than one in five first-time buyers is now aged 40 plus is all the proof you need that the UK property market is broken.
‘A lack of homes being built is driving prices up and keeping many off the ladder for years, if not decades.’
Riz Malik, director at Southend-on-Sea-based financial adviser R3 Wealth, added: ‘Over the past 20 years, I have seen first-time buyers get older and older, and most of them are doing so via parental assistance.
‘Even as borrowing capacity improves, house prices remain high relative to average incomes. The only solution is to build more houses, but we seem incapable of doing that at scale.’
High rents were also criticised for keeping young people off the housing ladder, with property insiders saying it hampered their ability to save a deposit.
How old is too old to get a mortgage?
Most banks and building societies have an upper age limit for mortgage applications, often somewhere between 70 and 80.
This is because people of that age are unlikely to want or be able to work, which makes them a riskier prospect for lenders.
Even if they could still afford to make the mortgage payments, for example from a pension, their circumstances could change and they may no longer be able to pay.
Younger people applying for a mortgage will often be asked when they expect to retire for this reason.
There has been a rise in longer mortgage terms of 35 or even 40 years, as buyers cope with high house prices by spreading payments over a longer period.
It means more people are going to be paying off their home loans into later life – but banks won’t want someone to still be making repayments after they retire as it increases the risk of repossession.
For example, someone aged 40 may not be able to get a 35-year mortgage as the bank may judge it unlikely they would still have a salary at 75.
