Good news for the equity release market

Recently released figures from the British Bankers’ Association (BBA), show that the number of bank-approved home loans rose substantially in March. Equity release figures were also up.

In total, 34,905 loans were approved for house purchase, up 19.5% compared with 29,212 during the same month last year. The average value of these loans was £146,100, compared with an average value of £130,600 in March 2009.

The figures show that, including remortgages and equity release, a total of 77,352 home loans were approved in March compared with 73,503 loans in February and 75,756 in March 2009.

However, commenting on the figures, spokesperson for the Mortgage Advice Bureau, Brian Murphy, was less optimistic about the coming months. He said: “A small rise in mortgage approvals last month is roughly in line with seasonal expectations. However, the picture in April and May is likely to be an entirely different one, with a levelling-off in mortgage approvals predicted at a time when housing market activity is normally at its busiest.”