First-time buyers having difficulty buying a home could consider taking out a shared appreciation mortgage, an expert from an independent financial adviser has suggested.

The products allow people to borrow up to 25 per cent of the value of a property without having to make any repayments until they sell or die, at which point the lender is entitled to 75 per cent of the appreciation value of the property.

Mike Pendergast, a spokesperson Zen Financial Services, said: "It''s not shared ownership, you still own the whole house, but the lender takes a share in the profit that the property makes. They are quite new and quite useful."

He added that a shared appreciation mortgage was a multi-purpose product that could benefit buyers in a range of different financial situations.

"That''s not necessarily for adverse credit, although they would consider that, but for first-time buyers as well and particularly in areas where it can be more expensive for first-time buyers to get on the market," he said.

However, the products have prompted concerns among some consumer groups that buyers could miss out on the benefits of future house price increases if they choose this type of mortgage.