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Thursday, May 26, 2016

Nationwide to provide 'safer' equity release loans. About bl****y time.

Nationwide Building Society, Britain’s second biggest mortgage lender is working on new ways to allow older homeowners to release value from their homes.

Well, well, well - at least somebody has been listening to what I have been saying for the past decade.

It is an absolute no brainer that there will be a massive demand for 'safe' equity release products. Why? Because for a large tranche of older people, the release of money from their property is the only way they will financially survive their post-work life.

The building society’s group retail director, said: “There is a clear customer need. We are trying to crack the problem and are in the research and development phase.”

Nationwide’s new chief executive, said: “The challenge is how do you do it in a clear, simple, safe and secure way.”

Whilst Nationwide is working on this product the Clydesdale and Yorkshire Bank is wants to shed its old-fashioned provincial image and become a trendy lender for the internet generation.
Clydesdale’s chief executive said  “I think we have entered a new phase where we are targeting millennial-type services to a millennial population on a national demographic – they are younger and more affluent.”

Well good luck there chum.

Firstly if you target Millennials you are almost certain to fail since you will be approaching the marketing with some stereotype of the customer.

Still, like M&S that I recently commented about, you have to go through a few iterations of targeting before you get it right. Dick Stroud


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