Equity release where older people can realise at least some of the value of their property is becoming increasingly popular.

Bank of Ireland, which was first into this market, has been experiencing what it calls "phenomenal demand" for its Life-Loan product with thousands of queries coming in from older homeowners.

When the product was first announced over 5,000 people contacted their branches for more information and that level of demand has accelerated in recent months, according to the Bank.

Other lenders have also looked into the market, particularly Irish Permanent several years ago. However, resistance to the product, particularly from the middle-aged, and difficulty making it financially attractive meant it put its plans on ice.

The Bank of Ireland product allows people over 65 to release equity in their homes without having to make regular repayments. It is available to Bank of Ireland and non-customers both.

It unlocks a percentage of the value of a property giving access to a lump sum of between £15,000 to £200,000 (€19,050 to €254,000), which can be used for any purpose.

People can obtain 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 a choice of either a new fixed rate or a variable rate. Life-Loan is applicable for homes valued from £60,000 (€76,200) or apartments from £80,000 (€101,600).

No repayment is necessary until the property is sold, or the owner vacates the property for a period of six months or more, or the owner dies. However, you should remember that if the loan is repaid in advance penalties will apply.

Most people who take out the loans are aged between 65 and 75 and the average amount is £45,000 (€57,150). For some people this is used for home improvements, perhaps to put in a kitchen or even heating. For others it is for quality of life and the money is used to boost disposable income. Many older people find it increasingly difficult to run a home on a social welfare payment and this loan can make all the difference between staying in their own home and having to move.

Still others use the money to fund a holiday home and occasionally to help out members of their family.

Bank of Ireland has not found resistance among middle-aged children of those taking out the loan and most are very supportive.

AS A spokeswoman pointed out, even for those who would be reluctant, escalating house prices mean that 70 per cent or 80 per cent of the value of the home which is left is a substantial sum of money.

A company called Residential Reversions is also offering a product that allows people to tap into the equity built up in their houses. It allows homeowners over 70 years of age in the greater Dublin area to sell a stake in their home in return for a lump sum, a guaranteed monthly income or a combination of the two.