Join our community of smart investors

Provident Financial unfazed by new competitor

BROKERS' TIPS: Government lending scheme unlikely to make much difference
September 27, 2010

What's new:

â–  Government announces affordable loan scheme

â–  Loan demand still far outstrips supply

IC TIP: Hold at 820p

Shares in Provident Financial have fallen recently mainly, as investors ponder the introduction of a planned government-funded "affordable loans scheme" called My Home Finance. Offering interest rates of up to 49.9 per cent, these 'affordable' loans are being piloted in 10 branches in the Midlands, and there are concerns that this competition could dent new loans.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in