Two-thirds of holiday homes bought with cash

Holiday home

Some 67% of holiday homes are bought without a mortgage, according to a new study.

The average price of a holiday home was £135,750 for properties bought within the past year.

Of the two-thirds of Brits who bought their holiday home outright, 77% had enough of their own savings to meet the price while the remainder borrowed from friends and family or got together with other buyers, a survey by insurer Schofields revealed.

The UK is the most popular location for international holiday home owners, with 21% of cash buyers citing it as their preferred destination.

Meanwhile, the top international hotspots for mortgage-free holiday homes were Spain (19%), France (17%), Portugal (15%) and Italy (12%).

Almost a third (63%) of those who took part in the poll said it their property was 'project purchase', meaning it required renovation.

Phil Schofield, of Schofields Holiday Home Insurance, said: "Buying a holiday home is a real investment, with many owners looking to buy a property as a means of investing their cash in something that will see them enjoy a good return in the years to come.