So compared with the UK, it costs relatively little to finance a property in Spain and repayment times for Spanish mortgages are usually far lower (average 10-15 years) than those in the UK.

What's more, as British property owners have experienced in recent years, their houses have risen dramatically in value. So rather than keep that equity tied up in bricks and mortar, they have unlocked the increased value of their asset by remortgaging the property and investing the difference in a second home in Spain. This is known in the UK as equity release.

A large amount of property in Spain is being funded this way, through UK equity release. Another increasingly popular option is for people in their 50s or above to divert their pension payments into property as general confidence in the stock market drops.

Seek advice from a Spanish lawyer or estate agent to establish which type of mortgage best suits your interests. They can also advise you on whether to take out a mortgage in sterling or euros, as there are various factors to consider in this decision. You could lose a lot of money through fluctuating exchange rates if you are repaying your Spanish mortgage from a UK income.

Also seek advice on whose name you want to buy the property in - yours, your partner's or your company's - and the relative benefits. It is best if the property changes hands as little as possible to avoid hefty inheritance tax.

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