St George and First Permanent and reduce variable rates

Price competition has emerged over the last couple of weeks in the no deposit home loan segment, not that there are many providers. First Permanent lowered the headline interest rate on its ‘106 per cent' home loans to 7.95 from 8.20 per cent. The comparison rate fell to 8.25 per cent, taking into account fees. St George Bank has also cut the interest rate on its no-deposit home loan, though in St George's case the bank lends only up to 100 per cent of the value. The bank cut its headline rate to 7.14 per cent, or 0.68 percentage points below the bank's notional standard variable rate of 7.82 per cent (which hardly any customer pays).