Removing the age limit on interest-only mortgages could help many people struggling to get a foot on the property ladder, according to the National Association of Property Buyers (NAPB).

Reports last week revealed that one bank had removed the age limit on its interest-only mortgages so that borrowers can take out loans for up to 40 years, however old they are.

While this led to many commentators predicting a surge in people looking to benefit from ‘forever mortgages’, the NAPB’s Jonathan Rolande said that giving homeowners more options when it comes to what they do with their money and property is “never a bad thing”.

He added: “Older owners often feel ‘property rich but cash poor’ and the recent rises in home values and the increase in the cost of living have brought that into sharper focus.

“In the right circumstances, owners might wish to mortgage to help a loved one onto the property ladder, to carry out expensive repairs and improvements, or simply just to spend extra cash on a dream holiday.”

But, Rolande added, there is a concern for the wider market in this scenario. “Money extracted will often be used to invest in a buy-to-let or to help an offspring to buy, further inflating prices. It seems like property can only ever increase in value, and a generation has never seen anything but this situation.

“However, injecting more and more liquidity into property may just make any future correction much more painful.”

Last year a record £6.2bn was borrowed through equity release. More than 93,000 homeowners aged over 55 used it as a way to release money from their property without having to move.