Released on: October 23, 2008, 11:01 am

Press Release Author: Berni Ryan

Industry: Financial

Press Release Summary: Legal & General's general insurance business annual online
survey, 'Safe as Houses', which asks people for feedback and their views on home
security and safety, aims to highlight the safety of UK homes.

Press Release Body:

The third segment of 'Mortgage Purchase Index' report series from Legal & General
studies trends from the mortgage applications, that have summed up to over 19,000 in
the last quarter.

Q3 Key Findings:

* There was an increase of 24% on mortgages in the last quarter as 35% of
residential borrowers took mortgages at variable rates in the last three months.
* 63% of people took mortgages at fixed rate which is down from the 75% in the
last quarter. Though the figure suggests that there was a decrease in fixed rate
mortgage yet it is highly popular among the residential borrowers.
* 55% of the buy-to-let borrowers took variable rate mortgage as compared to 43%
of the fixed rate mortgages. This figure clearly shows that the variable rate
mortgage is more popular among the buy-to-let borrowers.
* In the last quarter the average residential mortgage was just 60% loan-to-value.

There has been a decrease in the two year fixed rates while three, five and ten year
products are more costly.

Stephen Smith, Director of Housing at Legal & General said: "As suspected, the
popularity of fixed rate mortgages peaked last quarter when we found that
three-quarters of borrowers were taking this type of mortgage, compared to 63% in
Q3. Trackers will have attracted greater attention as forecasts of base rate cuts
become more prominent. The popularity of variable rates has also perhaps been
boosted by the number of borrowers sticking with their lender's standard variable
rate when they came to the end of a deal rather than remortgaging straight away.
This approach of sitting on the fence is a sign of the times and would have been
unheard of a year or so ago. Fixed rates over the past three months have been
'expensive' compared to the beginning of the year, although two-year deals have
dropped somewhat recently.

"The average residential borrower has been able to put up a 40% deposit, which
indicates that whilst there are many people with healthy levels of debt, there are
now far fewer mortgages being offered with high LTVs. This has lead to the average
LTV for residential borrowers falling throughout the year. On the other hand, the
average LTV for buy-to-let borrowers has risen from 67% to 73%, showing that
cash-rich landlords are taking advantage of the increasing demand for rental
accommodation."

Notes to Editors:
Data based on 19,140 mortgage applications through the Legal & General Mortgage Club
from June to August 2008.

About Legal & General - Legal & General makes financial security easier to achieve
for millions of people. To many retired people, the pension fund they have built up
over the years is what they now depend on.

To people of working age, the savings they make into ISAs, unit trusts and pension
funds are a vital source of reassurance today and financial security in the future.

At every stage of life, people seek financial security and protection for
themselves, their loved ones and their possessions.

Through our range of general insurance and protection products we help protect the
lives, the health, the homes and the belongings of millions of people.

For more information contact:
Joe Wiggins
PR Manager Protection and Housing
t:01737 375 351
m:07841 366 145
f:01737 374 275
e: joe.wiggins@landg.com

Web Site: http://www.legalandgeneral.com

Contact Details: Contact Details:
Berni Ryan
Web Site: http://www.legalandgeneral.com
Email: joe.wiggins@landg.com
Tel: 01737 375 351

Address:
One Coleman Street, London
City: London
Country: United Kingdom
Zip Code: EC2R 5AA