Over a quarter (27 per cent) of Gen X (born between 1965-1980) savers are not confident that they will pay off their mortgage before age 67, research from Just Group has found.

The survey also revealed that a further 13 per cent of Gen X firmly believe they won’t repay their mortgage before they reach the state pension age, while 14 per cent were unsure if they could.

Just Group found that there is a sharp divide between those who live in London and those living elsewhere in the UK, indicating the impact that paying higher house prices can make to mortgage repayment expectations.

The research revealed that double the number of London-based Gen X (26 per cent) with a mortgage said they didn’t expect to repay their mortgage before 67, compared to the national average of 13 per cent.

The retirement group also highlighted that the growing cost of borrowing appears to be contributing to these repayment fears, with nearly half (45 per cent) of Gen X who have a mortgage saying it is taking them longer to pay it off than they had hoped.

The main reason for this was that a third (34 per cent) said that they had needed to extend their mortgage term to reduce monthly payments.

In addition to this, nearly third (32 per cent) said they had to extend the term to pay for home improvements and almost a quarter (23 per cent) said it was because of increased interest payments.

Commenting on the findings, Just Group group communications director, Stephen Lowe, said: “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.

“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.”

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