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Npower lines up loan and life push

Utility company npower is set to launch into the mortgage and life insurance market next year and may even consider becoming an IFA as part of its new financial services package.

The firm said earlier this month that it would be diversifying its core business of supplying gas and electricity to homes and businesses into the financial services market by offering home contents and building insurance.

It says products which have minimal regulation, such as mortgages and term insurance, are on the agenda once it has built a presence in the general insurance market.

Npower believes that the mortgage market is the logical step as it fits in with the company&#39s role as a home services provider.

It says mortgages are a major purchase and it is important to build trust with consumer before it launches products.

Npower&#39s life insurance products would initially target the low-cost, lower end of the market.

Products would be sold through traditional and online channels under the npower brand name although it would consider co-branding with other providers.

The company is currently talking to mortgage providers, IFAs and institutions and plans to sell through a number of channels. It says it has not ruled out any options.

Business manager for financial services Phil Taylor says: “It is very early days but mortgage and term insurance products are certainly on the agenda.”

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