More than 1,500 Irish people aged over 65 have taken out loans with Bank of Ireland to release the value of the equity in their homes since the product was introduced two years ago.

The bank has stated that the average loan was for €47,000 with no repayments due until the property is either sold or the owner vacates it or dies.

Most of the loans were used for home improvements, to give financial support to other family members, for purchasing holiday homes or general life improvement. Home owners can borrow up to 30 per cent of the value of their home at a fixed rate of 6.7 per cent for the first 15 years. At the end of this period customers are offered either a fixed or variable rate of interest.

The minimum property value against which the bank will issue this loan is €150,000 for a property in Dublin city and county and between €75,000 and €100,000 outside of Dublin. Most people who applied for these loans were living in urban areas where house prices have accelerated most rapidly in recent years.