This is according a recent roundtable of industry leaders.

One of the key ideas raised was the introduction of Japanese-style intergenerational mortgages, designed to span multiple generations.

With this model, borrowers take out ultra-long-term mortgages – often 50 years plus – with the understanding that their children will inherit both the property and the remaining debt.

By spreading repayments over such long periods, monthly costs fall significantly, making home ownership more achievable for younger buyers.

Perenna head of product, proposition and distribution John Davison said: “The longer-term mortgage idea is very new in the UK, whereas other countries have intergenerational mortgages left as part of people’s estates.

“We have a cultural belief that we must pay off all our debt before we die and pass on our property mortgage-free to our children – but I’d rather my parents enjoyed their money and I’ll pay off the remaining mortgage from the property sale when they’re gone. There could be a shift in thinking coming for the new generation.”

While many lenders allow borrowers to carry their mortgage into retirement, most have maximum age caps where the loan must be repaid. This is typically 75-80 years old with major mainstream lenders.

PMS and Bankhall director at Sesame Bankhall Group  Claire Cherrington said one solution that could be preferable to renting for some borrowers would be for lenders to increase their upper age limits, allowing the debt to be repaid by the borrower’s estate upon death.

She said: “While later-life borrowing may not be the ideal solution for the majority, it could provide a practical solution for those who haven’t amassed equity by retirement. For these people, it could make sense to continue paying a mortgage in retirement instead of renting, especially if you’ve got a pension that covers it and you can afford it.

Cherrington added: “We need to think differently to tackle this and help broader society, as house prices won’t significantly fall or incomes significantly rise faster than inflation, so the affordability challenge remains.

While the current state pension age is 66, that is set to rise to 68 in 2044. However, last year the International Longevity Centre suggested that anyone born after April 1970 may have to wait until they were 71 to claim the state pension.

As a result, lenders will be forced to adapt to changing working paterns, according to Together’s, Director of Intermediary Sales Tanya Elmaz.

“We already have slightly longer terms for our residential mortgages, but we’ve got an aging population so it doesn’t matter what type of lender you are, you cannot have your eyes closed to the fact that we’re going to be working for longer.

“Retirement ages keep moving, so by the time some of us retire we might be a bit older, as we’re working longer. So, lenders will need to meet the needs of older customers as well as younger ones in future.”