Millions face mortgage in old age

First-time buyers are taking the plunge later in life

One in four people could still be paying off their mortgage in retirement, research has claimed.

The average age of a first-time buyer is on the increase as rising property prices make affording a home more difficult, insurer Prudential said.

Four out of 10 first-time buyers are now over 35.

In addition, more than 10 million people aged between 35 and 65 have started a new mortgage term when they moved house.

In total, Prudential estimates that 12.5 million people will still owe money on their mortgage at retirement, when average incomes fall by £4,200 a year.

Nevertheless, many Britons seem to regard their home as an asset in retirement rather than a potential burden.

Nearly half of the 1,020 people surveyed, as part of the research, said they were either using or planned to use the equity in their property to help boost their retirement income.