Life Loan: Bank of Ireland has sold more than 2,000 equity release loans to consumers aged 65 and over.

The average loan size has risen from €47,000 in September 2002 to €59,800 - an increase of 27 per cent. This means that Bank of Ireland has lent about €120 million through the product.

Customers borrow up to a certain percentage of the value of their home through a 15-year fixed-rate loan. For existing customers, this rate is 6.77 per cent. However, last week, Bank of Ireland cut the rate for new customers to 6.25 per cent.

At the end of this period - by which time the initial loan will have grown considerably as no repayments have been made - customers are offered a choice of either a new fixed rate or a variable rate.

If you are between the ages of 65 and 69, you can borrow up to 20 per cent of the current value of your home. The maximum amount that can be borrowed is 30 per cent, but you must be over the age of 80 to do this.

The minimum property value against which the bank will issue a loan is €150,000 in Dublin and €75,000-€100,000 outside of Dublin.

Residential Reversions:Launched in 2000 by a company called Residential Reversions (Investments) Ltd (RRIL), this scheme is available to people aged 70 or over - or a couple both aged 70 or over - for a dwelling worth at least €190,000.

In exchange for a part share in the house, RRIL gives the homeowner a benefit by way of a lump sum, a regular annual cash payment (annuity) or a combination of both.

Homeowners have right of residence until both die or vacate the property for more than six months. At this stage, the property is sold at market value, with the proceeds divided between RRIL and the owner or his/her estate.

The amount customers receive from RRIL will be significantly less than the market value of the share. It also depends on their age and sex, with men getting more than women due to their shorter life-expectancy. A couple will get even less again.

RRIL requires a minimum investment of 25 per cent of the open market value of the property, to the value of at least €85,000.

SHIP: Shared Home Investment Plan (SHIP) was set up last year by the former chief executive of Irish Permanent, Mr Billy Kane. The Royal Liver Assurance company recently announced that it is to distribute the product.

SHIP will pay a lump sum to couples aged 70 or over (or a single person aged 68 and over) in exchange for a share in their home, as long as properties are in good condition and are independently valued at €200,000 or more.

Homeowners retain the legal right to live in the property until they die or decide to sell.

SHIP will buy 25-90 per cent of the property.

Under its fixed-share contract, the price paid for a share will be much less than its market value.

But under the new variable share contract, SHIP pays the full open market value for the share, less an administration charge of 3 per cent. The percentage of the property the share represents grows the longer homeowners stay in the property.

For example, if SHIP buys a 20 per cent property share from a couple aged 70, after 15 years this will have doubled to 40 per cent.

People who want to do a home reversion plan should check out how much they would receive from both companies offering the product.

It is also crucial to get independent legal advice.