Convert home Equity Loan to Mortgage

Government's plan for new construction opens up such houses by borrowing up to 40 percent of the sale at zero percent for five years in return for the same amount of equity in the real estate.

Diagram only available for new buildings up to a top of £600,000. For a £500,000 plot this means a £200,000 loan from the state. First of all, you won't own the whole place. That means that if real estate values go up, so does the amount you need to pay back to the state.

You can resume the mortgage in five years to pay back the state equity loan and prevent increasing annuities. And if you're looking for an older home, perhaps one of London's many terraced houses with Viktorian charms, views to the west or other peripheral areas. £50,000 means that you would be able to make at least a 10 per cent down payment, which is the minimal most bankers need for a mortgage.

Contrary to the Share Plan, this can be used on old or new buildings, provided the house is your only real estate; that it costs less than 600,000 and you can pay at least a 5% caution. Former JP Morgan Private Bank global director Sara Yates is now a real estate development professional.

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