Your home may be repossessed if you do not keep up repayments on your mortgage.

Over 50s with mortgages in repayment crisis - Saga

More than two thirds of the 6.3 million over 50s with an interest-only mortgage, who had intended to pay it off with an endowment policy say their underperforming endowment will not foot the bill, according to Saga Personal Finance.

A third would need to sell their homes to make up the shortfall, according to Saga’s research.

The other two thirds have made alternative plans. A third said they would dip into their savings, 22% said they have been making capital repayments to reduce the debt, 18% said they would use other investments to make up the shortfall.

Just over one in 10 said they had extended their mortgage to give them extra time to pay it off.

However, some 1.7 million people, admitted they had no way of bridging the gap.

Jeff Bromage, chief operating officer of Saga Personal Finance, said: “Millions of British homeowners have been hit hard by underperforming endowments. Thankfully, there are options available.

“A growing number of people are turning to equity release as in order to avoid selling their home, upping sticks is probably the least-favoured option.

“If you’re over 55 and a homeowner, equity release could be a solution.”

While four in 10 over 50s are paying off a mortgage worth on average £49,000, according to Saga Personal Finance, more than 900,000 people in their 70s still have an average mortgage bill of some £38,000.

That means the over 70s are saddled with an total mortgage debt of £35.2bn.