The unemployment rate is also up to 8.4%, the highest level since January 1996, report Berkeley Alexander.
These latest figures, alongside the possibility of a double dip recession, paint a very bleak picture for hardworking Britons in 2012.
With many still running scared after the personal loan PPI scandal, it is more important than ever for brokers to explain to clients that Mortgage Payment Protection Insurance and Income Protection Insurance are entirely different products, and to emphasise the importance of professional research prior to buying.
Geoff Hall, MD at Berkeley Alexander warns:
“Don’t leave it too late. All the signs are that things will get worse over the next 12 months, so now’s the time to talk to customers about their concerns, to explain the protection options available, and to reassure them as to the dependability of the cover.
“MPPI and IP are essential products for a large sector of the UK population, and when sold properly will provide real peace of mind to clients.
"As a market leader in this area, it’s not surprising that we’re experiencing an unprecedented level of enquiries from advisers via our Business Development Team, as well as a flurry of new registrations on our website.
"The message is clearly getting through to many advisers, but others must move quickly to ensure that their clients are not exposed to the potentially disastrous consequences of unemployment.”
