Travel restrictions this summer mean more Brits have been choosing to book a staycation. The UK is filled with stunning destinations to explore, and you may be thinking about buying your own holiday home to escape to in 2021 and beyond. But with so many locations to consider, where should you search for the ideal property? Here are just five options that are worth thinking about.
1. Lake District
The Lake District is one of the most popular places to have a break in the UK, and for good reason. It’s the ideal place to head if you want to get away from day-to-day stress and get back to nature. Its abundance of water sports to try means it’s a great place for families and those that like to get active too. As it’s a national park, there are restrictions in terms of housing so finding the ideal property could be a challenge if you have a clear idea about what you want. If you decide that the Lake District is the right place for you, there are lots of picturesque towns to consider.
2. Cornwall
If your idea of a perfect holiday is to relax on the beach, Cornwall might just be the place to purchase a second home. Of course, there are opportunities to get out on the water and surf too. The beach isn’t all Cornwall has to offer either; there are plenty of historic sites to visit, including the famous Tintagel Castle that’s linked to the legend of King Arthur. If you’re buying a property in Cornwall you can choose to be close to the coast, a bustling town centre, or a rural location. St Ives and Padstow are great options for holiday homes, but you will pay a premium for a property. Other options to consider include Looe, Praa Sands, and Fowey.
3. South Wales
South Wales boasts a stunning, rugged coastline, as well as beaches to explore, making it an excellent place for a holiday home. With miles of hiking trails to walk along, it’s perfect for families that like to enjoy the great outdoors. You also have the Wye Valley, an Area of Outstanding National Beauty, as well as Cardiff, offering the best of both urban and rural places to visit. Average house prices in South Wales have exceeded national growth in the last year but are still priced below the national average, so you could get more for your money here.
4. London
If you prefer the hustle and bustle of city life, London has a lot to offer. From shopping to the theatre and plenty of museums, London has enough attractions to keep you entertained, however often you visit your holiday home. If you want to escape for the day, there are lots of day trips options too, including Bath, The New Forest, and Oxford. Of course, choosing a holiday home in the capital comes with a price tag. The average home in London is over £500,000.
5. The Scottish Highlands
If you really want to escape from a hectic schedule and urban life, the Scottish Highlands is ideal. From the mountains to the sea, you’ll be surrounded by beautiful landscapes and stunning castles. If you enjoy the outdoors and nature, there are lots of remote locations to choose from. But, if you prefer to have the amenities of a town or city, you’re also spoilt for choices, from Inverness to Fort William. There’s a huge range of properties to suit all needs too.
What you need to know if you need a mortgage for a holiday home purchase
If you’ll need to take out a mortgage to purchase a holiday home, the basics work in the same way as a traditional mortgage. However, there are a few key differences to keep in mind:
- You will usually need a deposit of at least 20% for a second mortgage. The more you can put down, the more competitive the deals you’ll have on offer.
- The lender will calculate affordability based on your income and outgoings. If you’re still paying the mortgage on your main home, this will affect the amount you can borrow.
- Lenders will assess your track record of repaying your mortgage on your main home when reviewing your application.
- As this will be a second property, you will need to pay a 3% Stamp Duty surcharge, which can increase costs significantly.
If you hope to let the property out, you’ll need to use a holiday let mortgage, which is a special type of buy-to-let mortgage.
Comparing mortgage deals can be time-consuming and confusing. If you’re ready to buy a holiday home, we’re here to help you find the right mortgage deal for you. Please contact us to discuss your needs.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
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