Personnal Loan to a friend

[M400 NBL]

Is it at all possible for them to change their mortgage product, ie interest only or over 40 years or even to a different lender.

They should speak to their lenders and see if there is no other way..and if so consider doing whatever means necessary - which will probably involve taking on extra jobs and scrimping for a long time.

[TDIPLC]

Never loan to or borrow from friends or family.

If you want to help, just give him the money and don't expect it back - you'll be less disappointed.

[srebbe64]

Give them the money (if you want to) and say to them that if they want to repay you in the future they can but if they don't want to repay you they needn't.

As others have said, if they're in debt now and you become another creditor then there is very little chance of them coming out well at the end of it all.

[trunnie]

Slightly off topic, but this may help your friend's parents; the question may be to also get them decent legal advice - when I used to act for a couple of major high street banks then the law was that you had to be able to pay off the arrears over a reasonable period (arguably at least 5 years and meet the monthly installments). A mortgagee would have to first convince a court to give an order for possession and then arrange for the bailiffs to execute the warrant for possession (i.e. evict the occupants)which usually happened a few months after the order was made. You may wish to check that it is the bailiffs turning up on Tuesday and not just the final hearing for an order for possession. A proposal to pay used to be able to (if refused and supported by evidence of ability to back it up with money) convince the Court to suspend the eviction date.

The lenders that I used to work for would consider suspending the eviction on sight of a bankers draft - but that was a while ago and the law outlined above may have changed/the lenders here may have a different view. The cheapest option may be to lend a small some of money to get urgent legal advice (try Shelter the housing charity) and then assess what is needed. I used to see so many people make poor decisions when decent advice would have helped them.

If all else fails and you can't raise the funds then some lenders were happy to allow the borrower to live in the property if they actively market it for sale as they know that an empty property sells for a lot less than a cared for one - but possibly by now the lender may have lost their sympathy for this borrower.