Two third of holiday home buyers don’t need brokers

A new study has revealed that two thirds of holiday home owners buy their properties without the financial support of a mortgage.

Holiday homes in Portugal are the most likely to be bought with the cash up front, followed by those in Spain and France.

The survey, conducted by, intended to find out the cash buyer hot spots around the world for the holiday home market, identifying how many buyers now purchase properties without any mortgage requirements and where they decide to invest their cash.

Some 1,986 British holiday home owners completed the survey, all of whom had purchased their holiday home property in the last year.

Respondents were first asked if they had required a mortgage in order to fund their holiday home investment, with 67% stating that they had not used the resources of a mortgage in order to make their purchase.

These respondents were then asked how they had achieved the purchase without the support of a mortgage, revealing that more than three quarters, 77%, had enough of their own savings and resources to hand to meet the price, with the remainder borrowing from friends and family or joining their resources with other buyers in order to afford the purchase, without the requirement for any financial lending.

The survey then asked these cash-buyers where they bought their properties, in order to assess the top international hot spots for mortgage-free holiday home purchases. The top 5 countries were revealed as UK, Spain, France, Portugal and Italy.

In order to find out more about these cash investments, the respondents were asked “Was the holiday home you bought a ‘project purchase’, meaning it required renovation, modernisation or any other work to make it ready for use/lease?’

The majority of cash buying home owners, 63%, confirmed that it was ‘project purchase’. The survey later asked the price of the average holiday home purchased. The team collaborated all of the answers given to generate the average, revealing the sterling equivalent to be £135,750.

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 which will see them enjoy a good return in the years to come.

“The market has been really promising of late, offering a great opportunity to get on the ladder abroad, receive a regular income and then generate a profit upon the future sale.

“This is particularly the case with ‘project purchases’, where you can get a beautiful house with great potential for a really good deal.

“Having said that, I imagine for the majority of Brits the thought of having £135,750 to hand is rather appealing and sadly not quite what’s on the bank statements every month!”