The last few years have been difficult ones for those wishing to buy any property, including a holiday home. The central problem has been the lack of funding for mortgages, or rather, the refusal of lenders to lend; the sting of the financial crisis is still being felt by many institutions.

But nothing stays the same for long in the property market. The Government’s Funding for Lending scheme has freed up a great deal of additional funding. Critics argue that a lot of this funding is being taken advantage of by property professionals such as buy to let investors, but signs are that all kinds of buyers are benefitting from these state-sponsored incentives.

Home sales in the UK are at their highest number for three years, and 2012’s 600,000 house sale figure is expected to beaten this year.
But buying a holiday home is still tough if you want one in a highly sought-after location such as London. Aside from very high prices, in some areas of the capital, properties are already occupied by foreign owners at a rate of 50%, suggesting that many are being used as holiday properties – and thereby reducing the number available.

Choosing a property in the countryside could be a good alternative to the capital since they are significantly cheaper.
Being able to put up a sizeable deposit will help keep your rates down. 15% is commonly required, though some lenders may accept less in some circumstances. However, if you can access enough money to put up a 40% deposit, you might enjoy rates as low as 3%.

Once you have a good idea of the rate you may get offered, add up other costs such as utilities, taxes, holiday home insurance and maintenance costs. You will then have a good idea about how much you can spend on a holiday home on a monthly basis, and be able to take that big step.

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