Ed Sheeran co-wrote song with a friend 'to help her pay off her mortgage'

The pair wrote 'Thinking Out Loud together', which went on to reach number one

Ed Sheeran entertained the crowds at Latitude Festival (Getty)

Ed Sheeran helped a childhood friend who was struggling financially by co-writing a song with her which went on to sell over 100,000 copies.

The singer, who presented the MTV Europe Music Awards with the actress Ruby Rose on Sunday evening, said he was approached by the singer and songwriter Amy Wadge as he finished his second album, X.

He told The Mirror: “She drove to my house – my album was nearly done – and she asked if I could put a song from when I was 17 on the deluxe album, so she could get a little bit of money and pay the mortgage and bills and stuff.

"While she was there, we wrote "Thinking Out Loud". Now she never has to worry about money again.”

Ms Wadge said her situation had become “financially difficult” after a publishing advance ran out. "Thinking Out Loud" was eventually released as a single and hit number one in the Official Charts, spending 19 weeks in the Top 40 in total.

Sheeran said "Thinking Out Loud", his second number one in six months, was his favourite song on the album.