Revealed - demographic finding it hardest to pay off ...

The so-called Generation X - those born between 1965 and 1980 - are finding it hardest to pay off their mortgage, a study claims.

Some 27 per cent of them are not confident they will be able to clear their mortgages before reaching 67.

The study, by retirement specialist Just Group, reveals that 13 per cent of Generation X members believe they may have to pay their mortgage while claiming their state pension, with another 14 per cent believing they may have difficulty meeting payments in later life.

The study also shows a contrast between London and the rest of the UK, with 26 per cent of Generation X Londoners holding mortgages expressing doubts about repaying before age 67, compared to the national average of just 13 per cent.

Many respondents suggested their plight will worsen if they extend their mortgage terms in order to reduce monthly payments. Additionally, 32 per cent extended their mortgage term for home improvements, while 23 per cent did so in response to increased interest rates.

“About three-quarters of the Gen X cohort own their own homes, but many are struggling to clear their mortgage within the expected time frame/ This group find their finances stretched and are faced with the unenviable choice of either clearing the mortgage or saving for a pension” explains Stephen Lowe, group communications director at Just Group.

“People’s budgets are being squeezed as they juggle competing pressures. As a result, we are seeing growing anxiety among this demographic that many will approach retirement still carrying the burden of making their mortgage repayments. This is felt more acutely among those in London, where property prices are higher and nearly double the national average of Gen X homeowners with a mortgage worry that they will still be saddled with a mortgage as they enter retirement.”