In a tricky situation with my Right to Buy application

yellowex

So I recently received an offer letter through from the council to buy my home as part of the Right to Buy process.  Owing to my 16-year tenancy, I am entitled to the maximum discount of 70%.  The value of the property is £76,500.  My discount is £53,500.  This makes my final sale price £22,950.  

Today, I contacted Halifax in order to get an agreement in principle.  I asked to borrow £25,000; £22,950 to cover the cost of the property and an additional £2,050 for home improvements.  I was on the phone with an advisor for around an hour discussing my income, expenditure, etc. only to get the very last stage of the process and be told that my application could not proceed as the amount I wanted to borrow to purchase the property was under their minimum threshold for lending, which is £25,000.

The advisor also confirmed that the system was not allowing her to count the additional request for borrowing for home improvements, and thus this was automatically rejecting my application.  She apologised and recommended I seek out other lenders, as they may not impose the same restrictions.

My question is: how common is this amongst lenders?  Will I struggle to get a mortgage for the actual cost of my home?  Do any lenders allow you to borrow additional money for home improvements to allow me to get past minimum lending amounts?

Any advice would be much appreciated!

MovingForwards

Speak with an independent whole of market mortgage broker to see what options are available.

If you do not know anyone who has purchased recently, have a look through the threads and see if a broker catches your eye and send them a message.

All mortgage lenders have a minimum amount they will consider lending, it's a case of picking the right one for your circumstances.