General insurance MD Peter Graham plays down recovery in unemployment

Legal & General managing director Peter Graham claims the "safety net" of mortgage payment protection insurance is still vital to consumers despite today's ONS figures which revealed a slight fall in unemployment in the UK.

In the three months to December, total unemployment hit 2.46m, down 3000 on the figure for the previous three months.

General insurance boss Graham said: "While it is fantastic to see unemployment levels falling, the reality is that unemployment typically lags behind a move out of recession, and so we could see figures still rise over the coming months.

"However, this improvement could mean we see increased interest in the mortgage market as people start to feel more confident about their employment situation."

He continued: "However, many people will still be struggling to pay their bills, including their mortgage repayments.

Recent stats from the Council of Mortagage Lenders highlighted that home repossession in 2009 were the highest it has been since 1995. It is essential that people protect their homes from repossession in the event that they are unable to maintain their monthly repayments.

"This is where Mortgage Payment Protection Insurance is a safety net that many people will need and one that they should be considering if arranging a mortgage."

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