Recession puts mortgage protection on increase, says Dot

Andy Cuthbert, managing director of Dot Financial Services, said individual concerns had played a big part in the rising value of cases.

He said: "The recession and general state of the economy has made people nervous in every aspect of their life.

"The property industry has in particular felt the brunt of a weak economy and, even though interest rates are still at a historical low making mortgage payments easier for some, first time buyers are continuing to struggle to make that step onto the property ladder."

"For anyone fortunate enough to have a large deposit to make the move they are going to do it with care."

Mr Cuthbert said mortgage payouts constituted one of the biggest costs for consumers, who are now willing to pay extra to ensure their mortgages are protected.

He said: "Unemployment levels remain high and this combined with other sensitive factors has helped our clients realise the importance of protecting themselves."

Mr Cuthbert said fear of a double dip recession was likely to fuel further increased sales of mortgage protection.