Landmark Repayment to interest only

strawb_shortcake

My brother is appalling with money, but miraculously has managed to keep a roof above his head for 16 years.
He took the maximum +100% mortgage back in 2003 with Northern Rock, the flat cost £89,999. Over the years he has fallen into arrears a number of times but most recently in June he was hours away from being evicted, when he he was bailed out by the bank of Mum and Dad at the 11th hour.
My parents have said they will not bail him out again; but want to try and help him get a grip of reality and sort himself out.
They are suggesting he asks to go to interest only, are Landmark likely to agree to this given his past history?
He is currently working but cash in hand on a self employed basis, I don't believe he has paid any tax or NI for at least 1 year, I am more inclined to think he should cut his losses and sell the flat and find a room to rent.
He is very secretive about earnings and debts so it's hard to understand the true position.
Please understand this is for my parents not my brother.

AnotherJoe

Why do you think IO would make any difference ? If he's awful with money, he'll just spend the excess. If being hours away from eviction isn't a wake up call, what would be ?

BoGoF

Why would the let him go IO? As said above it will only make matters worse.

How would he repay the mortgage when the term ends?

He's an adult, leave him to it or your parents will be the ones paying the price. No more bail outs.

RelievedSheff

I would think in this case it is unlikely that they would let him go interest only anyway with his previous history.

strawb_shortcake

Thank you for your replies, I thought IO would be unlikely, after my parents lent him £7000 to stop him being repossessed there is certainly no more money going his way.
I'm just really frustrated it causes my parents so much angst, he's nearly 50 so he's never going to change.
As it is IO would only ensure the Landmark would get a payment each month, and the pubs profits would increase. For him it's just delaying the inevitable.

BoGoF

annabanana82 wrote: »

As it is IO would only ensure the Landmark would get a payment each month, and the pubs profits would increase. For him it's just delaying the inevitable.

Would it ensure that though? Only thing it would ensure is that the balance of the mortgage isn't going down with no repayment strategy in place = no chance.

JayCeeEssex

I think it is highly unlikely that Landmark would consider allowing him to switch to IO!
They would almost certainly want evidence of his income to substantiate why the need to switch. If you think he has not paid tax or NI for the past couple of years and also works 'cash in hand' then he has some potentially very serious issues awaiting him if HMRC catch up with him.
It sounds to me as if his best option would be to sell up and rent or maybe see if Mum and Dad would be agreeable to him having his room back at home?

strawb_shortcake

JayCeeEssex wrote: »

I think it is highly unlikely that Landmark would consider allowing him to switch to IO!
They would almost certainly want evidence of his income to substantiate why the need to switch. If you think he has not paid tax or NI for the past couple of years and also works 'cash in hand' then he has some potentially very serious issues awaiting him if HMRC catch up with him.
It sounds to me as if his best option would be to sell up and rent or maybe see if Mum and Dad would be agreeable to him having his room back at home?

That was what I was getting at in my initial post that there is just a catalogue of problems, it's not just his mortgage and fixing one problem us likely to open up all the others. My parents have said they'll help him find a room to rent but he's not going home to live, I just hope they keep to It!!