Hardly surprisingly, the majority of mortgages in the U.K. are in Sterling, but for the more adventurous among you, who are not afraid to take an extra risk, a foreign currency mortgage is an option.

Basically, instead of lending in Sterling, the bank will advance you the money in another mainstream currency, such as Euros, US dollars or Japanese Yen. The cost of the debt is then converted to Sterling, and you use this to buy your property.

Although the debt is also paid off in the Foreign currency, this is done by you making appropriate monthly payments in Sterling which are then converted into the currency your mortgage is in.

You should always be aware that if Sterling took a tumble, your monthly payments could increase significantly, which is why it is so important you take expert advice.

Changes in the exchange rate may increase the Sterling equivalent of your debt.