Harriet Meyer/Telegraph.co.uk

Many offshore subsidiaries of building societies now offer mortgage services to expatriates and they could well be beneficial once you have decided to take the plunge.

"One of the advantages of using these lenders is that they often lend in sterling, potentially a big boon for a borrower whose income is in sterling as well," says David Hollingworth, a broker from London & Country.

"If the mortgage is in a different currency, there is the risk of exchange rate fluctuation effectively increasing the size of the mortgage overnight and therefore the monthly payments, just because the foreign currency strengthens against the pound.

"Of course, if the property generates an income through letting, then exchange rate fluctuation may not be quite such an issue. It is important to check that renting the property is allowed by the lender."

And in general terms, it is very important to do your homework before buying your dream home in the sun.

Get an initial decision from your lender prior to making a decision so that you know what your price limit is. Being tempted by a property that is more than you can afford can, of course, lead to problems.

Do your homework: has your area the facilities you need, especially if retiring, say, to Spain?
For those wanting to buy in Spain, Norwich & Peterborough building society specialises in Spanish and Gibraltar home loans.

Mike Sketch, of Norwich & Peterborough, says: "Buying in Spain is still growing in popularity. Those who are looking to buy should move quickly though, as Spain is overtaking the UK in terms of house price growth."

Get to know the area you want to buy in by visiting and having a good look around.

Mr Sketch adds: "Consider if the area has all the facilities you may need, especially if retiring to Spain; facilities such as medical services, transport, shops and entertainment. Make several trips out, at different times of the year.

"Is it going to be your retirement home or a regular holiday home? Your needs will be very different if you are planning to live in it full time or just for a few weeks each year."

To qualify for a Norwich & Peterborough mortgage, you must be a resident or expatriate of the UK, or a permanent resident of Gibraltar. It is willing to accept applications for off-plan developments. However, you will not get an advance until the property is completed. Also, payments must be in sterling from a British bank or building society.

Norwich & Peterborough charges 3.79pc fixed for two years, or 5.49pc for five years. It also has mortgage that tracks the Bank of England base rate, currently 4.75pc, plus 0.24 percentage points in years one and two, rising to base rate plus 1.25pc in three to five.

It will lend up to 75pc of the valuation on a property bought for £60,000 or more, and loan terms are up to 20 years.

However, if you are thinking of buying in Spain, it can be expensive. About 10pc of the purchase price is made up of various taxes and legal fees. Also, there will be a Norwich & Peterborough arrangement fee of around £250, and a valuation/application fee from £375.

Mr Sketch adds: "Have independent transport to view properties and view as broad a cross-section of properties as possible before deciding.

"If you like a property because it has wonderful views, do find out if any development is planned or would be permitted that would ruin your vista. Contracts to purchase property can become legally binding very quickly so don't sign anything before seeking legal advice."

Expats seeking a mortgage on Guernsey should consider Skipton Guernsey, the only subsidiary of a top 10 building society to offer loans to locals and non-locals on the island.

Nigel Pascoe, director of lending at Skipton Guernsey, says: "The local market comprises of 90pc of the housing stock, while the open market is for the remaining 10pc, which is open for anyone who wants to live in Guernsey."

Loans are available for up to 25 years and of up to 95pc of a property's value. Skipton Guernsey's standard variable rate is 6pc and it has a two-year fixed rate of 5.54pc.

You will have to employ a local advocate to agree the conditions of the sale, whose fee will be around 4.25pc of the realty cost of the property.