Over a third of homeowners expect to have to work into retirement just to pay off their mortgage, according to a survey.

Some 36 percent predicted they will be at least 60 before they own their home, the study of almost 900 homeowners aged over 25 said.

The One Account survey also found that the size of the UK's mortgage debt is preventing people from saving: 43 percent of those questioned admit they are unable to put anything aside for a rainy day or their retirement due to hefty mortgage repayments.

And 17 percent of 25 to 29 year olds say the cost of their mortgage is preventing them from starting a family.

Debbie Milsom, a spokeswoman for One Account, said: Paying off a mortgage should not mean that people have to put their life plans on hold.

It's worrying that homeowners perceive that it will take them until they are in their 60s before they pay it off when they should be spending this time preparing financially for their futures.

House prices in the UK have surged 179 percent in the past 10 years, according to Britain's largest mortgage lender, Halifax.

Milsom said a flexible mortgage such as a current account mortgage that allows homeowners to offset interest on their income against that on their mortgage could help homeowners pay off their mortgage early.

However, Melanie Bien, associate director at independent mortgage broker Savills Private Finance, warned that current account mortgages are not the best solution for everyone.

The rate of interest charged on current account mortgages tends to be rather higher than on the standard residential 'best buy' deals, as you pay a premium for the offsetting facility, she said.

For example, the One Account charges interest at 5.95 percent on your mortgage, whereas you can fix for two years with Yorkshire Building Society for 4.79 per cent.

Unless you receive an excellent salary into your current account each month, which can be offset against your mortgage to reduce the interest you pay, you will be better off opting for a straightforward mortgage without an offsetting facility.

Figuring out how much you would need to earn to make a current account mortgage more economical is complicated by the fact that the amount of money in the account will vary as you spend your income throughout the month.

But, if the One Account was a straightforward offset deal, whereby savings interest is offset against mortgage interest, someone with the average mortgage of 86,600 pounds would need to have 17,500 in savings to make this better value than the Yorkshire two year fix.

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