As the amount of Brits buying property abroad increases every year, so too does the popularity of borrowing in a foreign currency to finance that purchase.

The appeal of using a foreign mortgage is simple - lower interest rates. Rather than saving money, though, many buyers still find themselves with unnecessary costs.

Foreign euro mortgages are attracting more and more overseas buyers - almost a third of British people moving to France, for example, use French mortgages. Currently, variable interest rates in European Union countries are around two per cent cheaper than those in Britain. They are also deemed more stable as they are influenced by the European Central Bank.

But despite these benefits, international property buyers could be exposing themselves to excessive bank charges and currency risks when they transfer money abroad to fund their mortgage repayments.

Mark Bodega, director at foreign exchange specialist HiFX, says that although plenty of Brits are enjoying the cheaper rates offered by euro mortgages, they are losing out elsewhere.

"Most people completely forget to take into account the transfer charges levied by their bank and the currency risk associated with transferring money abroad."

And currency risks do need to be taken seriously. Anyone earning money in sterling and borrowing in euros risks suddenly becoming worse off if the pound weakens against the euro before the loan is repaid. Many people, though, decide it is an acceptable risk in exchange for savings from lower interest rates which can amount to hundreds of pounds a year.

If you do opt for a foreign mortgage, you need to consider how you are going to transfer money abroad to meet your repayments. Most high street banks charge customers to transfer and receive payments and are unlikely to offer the most competitive exchange rates.

Mr Bodega reckons that by using a currency specialist you could save more than £800 a year - or £12,600 over the typical lifespan of a mortgage - on bank charges alone.

If repayments on a French mortgage were 1,200 euros per month, an exchange rate from a bank at 1.436 will translate as £836 per month. Add on top of this an average £46 for commission, transfer and receiving charges and it comes to £882 per month. Using a currency specialist, you are more likely to get an exchange rate of 1.473 making £815 per month, plus no extra charges. That's a saving of £67 per month - £804 every year.

To help British buyers get the most out of their euro mortgages, HiFX recently teamed up with French property financing bank Credit Foncier de France.

"Overseas buyers now make up a significant part of the French property market and are keen to take advantage of French financing options," says François Drouin, chairman of Credit Foncier. "Our customers want to make the most of their property investment and protect themselves against currency risk."

Some foreign exchange brokers also offer a regular payment service which allows customers with overseas mortgages to fix exchange rates for up to two years into the future. Another foreign exchange broker specialising in international property financing is Foreign Currency Direct which, like HiFX, offers preferential rates of exchange.

If you prefer to use a British high street bank you are familiar with, you may be able to reduce the risk of exchange rate fluctuations on international money transferrals. Customers of Barclays Bank, for instance, can lock into an exchange rate for a set period of time. Other banks lending on overseas properties include Investec Private Bank, Lloyds TSB and the Woolwich.

Arranging a mortgage may not be the most exciting aspect of a move abroad, but choosing the right one for your particular circumstances could save you money. A good financial adviser will be able to outline local rules and regulations, and advise you on the most suitable mortgage deals and money transferral options.