BANK OF IRELAND will be making €1.5 billion available for mortgages next year.

The mortgage fund, which will support customers buying their first home or moving home in 2012, may be expanded to support demand, the bank said this afternoon.

The move comes on top of yesterday’s Budget announcement by Minister for Finance Michael Noonan which included several schemes aimed at encouraging people to buy homes.

The measures include increased mortgage relief for first-time buyers next year as well as for buyers who bought property between 2004 and 2008.

The moves are seen as a targeted attempt to encourage people to buy homes in the current depressed property market.

In a statement, a spokesperson for Bank of Ireland said that the fund will act as a “further support” to Noonan’s announcements aimed at supporting first time buyers.

“Should we see demand outstripping the fund then we will extend the size of the fund to cater for and support this demand. Bank of Ireland is committed to supporting customers who wish to purchase a home and we will continue to take further steps to demonstrate this support”.

Bank of Ireland provided mortgage finance to almost six in every ten first time buyer customers, according to the most recently-published Irish Mortgage Council market data.