One in six people admitted they will definitely be over the age of 65 by the time they finish repaying their mortgage, while another 9 per cent said they have no idea when it will be paid off, research from Hargreaves Lansdown revealed.

The poll found that younger people are more optimistic, with 80 per cent of 16 to 34-year-olds expecting to have paid off their mortgage by 65. However, Hargreaves Lansdown suggested this optimism is misplaces, particularly as findings from the Financial Conduct Authority (FCA) highlighted that 40 per cent of first-time buyers in 2017 will still be repaying at 65.

Hargreaves Lansdown personal finance analyst Sarah Coles said: “65 is the new 50, but not in a good way.

“Because while previous generations might be footloose and mortgage free by their 50s, increasingly we’re saddled with debts as we head into retirement.

“Higher property prices and more people in higher education mean we’re buying later and borrowing more for longer. We face more backwards steps along the way too – dipping into equity to support our offspring, dealing with the horror of an interest-only shortfall, or starting all over again after divorce. It’s hardly surprising that one in six people say they’ll definitely be over 65 when they repay their mortgage.”

Among those aged 55 and with a mortgage, 26 per cent expected to pay it over the age of 70 and 12 per cent do not think they will ever repay it. The average age homeowners expect to repay their mortgage is 57.5 years.

Furthermore, 44 per cent of respondents admitted they are concerned that they will run out of money in retirement.

Coles implied that for some, continuing to repay their mortgage over the age of 65 is “all part of a sensible long-term plan”, adding: “They won’t reach state pension age until their late 60s, so they already plan to work past 65, and will still be able to afford their mortgage payments. Even if they choose to retire earlier, they may find it perfectly manageable if they have generous pensions and can access low interest rates on their small remaining mortgages.

Others are victims of circumstances, who won’t be able to repay by the time they retire, can’t work later in life, and can’t afford to pay their mortgage from their pension. These people could end up as one of the one in five who say they’ll never be able to repay. But there are still some options.”

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