The EBS Building Society has received 3,700 inquiries about its Familyfirst mortgage and expects that this will result in hundreds of these loans being approved.

The society has said 60 per cent of these inquiries have come from first-time buyers and 40 per cent from parents of individuals who are trying to buy a home.

The EBS was widely criticised for the advertising campaign it used to promote its new product, which is designed to allow parents to raise money on their own homes to contribute towards their children's homes.

Consumers and groups representing older people attacked the advertisement, describing it as "a step too far" in its encouragement of young adults to persuade their parents to take on this debt.

The advertising campaign has wound down as scheduled and EBS head of marketing, Mr Pat Farrell, said it had no immediate plans to re-introduce it. "There is no need to at the moment. This is the highest response we have had to a new product."

He said the society received just 30 negative calls regarding the advertisement and expected that hundreds of these new type loans would be processed in coming months. "The product reflects the reality that 70 per cent of all first-time buyers are already getting financial help from their parents. New mortgages issued are still advanced based on the individual's ability to repay. We believe many people misunderstood the product," he said.

The advertisement encouraged parents to "turn your house into their home" by borrowing against the family home to provide the 10 per cent deposit for their offspring's first house.

Critics claimed it put parents under unfair and undue pressure to fund houses for their children.

The EBS brochure for the Familyfirst Homeloan stated that "as parents of first-time buyers, you'll enjoy the rare satisfaction and peace of mind that comes from giving your children a helping hand when they need it most".

Other financial institutions have developed loan products to facilitate individuals to realise the equity in their homes but have not suggested this should be directed towards helping their children to buy a home.

Bank of Ireland and AIB have claimed their market research established that parents would not welcome a product that would put them under pressure to take on debt for their children.