Kensington Mortgages has partnered with Even to launch interest-free loans to first-time buyers (FTBs).

Even offers second charge mortgages that allow hopeful buyers with at least enough saved to put down a 5% deposit to borrow double this amount, tripling their deposit.

Instead of charging interest, Even takes a share in any profit or loss in the property value either at the point of sale or when the loan is repaid.

The example Even gives is that, if the borrower contributes £10,000 and Even matches this with another £10,000, its share of any profit or loss is 50%.

Therefore, if the property increases in value by £5,000, Even will be owed £2,500 of this profit.

These second charge mortgages can be taken out for a maximum of 35 years and the borrower must pay the initial loan back on a monthly basis. The whole loan can be paid back at any time.

Eligible properties must be in England and Wales and valued at a minimum of £100,000 outside London and £150,000 within London and up to £1m. Additionally, the property must be pre-owned – new builds don’t qualify.

Even chief operating officer James Turford says: “Our company mission is to help end generation rent, and we’ve been working on the Even equity loan for two years as the first step toward that goal.

“What has especially impressed us about Kensington was not only their amazing track record as specialist lender of the year, but also the way in which they embrace innovation, and moved quickly to follow through on the promise helping those who would otherwise have no option to buy.”

And Kensington new business development director Craig McKinlay says: “[Even’s] innovative solution to help generation rent get on the housing ladder fits perfectly with Kensington’s goal as a specialist lender to help those who struggle to get a mortgage from mainstream lenders.”