The single currency could lead an even greater number of Brits to buy a second home abroad, according to the head of Abbey National France, one of the leading specialists in providing foreign currency home loans to UK nationals.

This country may well be benefiting from the lowest mortgage rates for the best part of half a century, but interest rates on the continent remain at an even lower level, currently pegged almost a whole percentage point lower than UK base rates at just 3.25%. This, coupled with high British house prices and the opening up of the European flight market to low cost carriers such as Easyjet and Ryanair, is making the purchase of foreign property ever more attractive.

Testimony to this is the fact that last month Abbey National France reported a 66 percent increase in the number of people buying a home in France compared to December last year, with the expectation that this year will see an even bigger boom in the market.

David Wells, managing director of Abbey National France, said: "The popularity of having a second home abroad mostly stems from its affordability, along with work and travel links now being more flexible than ever, making a different lifestyle possible, even at Christmas and New Year."

Barlclays Private Clients is another UK bank that allows mortgages to be taken in foreign currencies and spokesman Alan White agreed that the Euro offered plenty of new opportunities, saying: "Borrowers can now raise finance from equity in their own home or take out an Open Plan Euro mortgage in Either France, Portugal or Spain."