B o I gives elderly access to homes' cash

Full marks to Bank of Ireland for finally introducing a financial product long sought by people in this State. The bank's product opens up the possibility of elderly people being able to release value from their home to ensure they can enjoy a reasonable standard of living in their older years or give a helping hand to their children before they die.

Why it has taken so long to arrive is a mystery. Such products have been available in Britain for some time and there has been no shortage of demand in Ireland, with its relatively low non-State pension provision and 195,000 owner/occupiers over 65.

The scheme will allow owner occupiers to release up to 30 per cent of the value of their property to receive between £15,000 and £200,000. Still, the bank is not in it for charity and the projected interest rate is higher than the rate that might be available under re-mortgaging arrangements.

As it stands, house prices would need to rise by more than 7.5 per cent a year to avoid the interest eating further into the property's capital value. For now, that is not a problem but the future is opaque. It might be worth while waiting to see who else enters the market.

Dominic Coyle can be contacted at dcoyle@irish-times.ie