Apart from the obvious reason that you might need the money many people have decided that the present low interest rates available in the UK and overseas mean that their own money is better invested in their business or other assets.

Some decide that borrowing part of the price of the property can “leverage” their investment. That is that, provided the property rises in value more than the interest rate, their own investment in the property will grow in value even faster. Investors can further enhance their yield from rental returns by taking advantage of the interest only type products which are starting to become available.

To guard against the risk of increasing mortgage rates you may want to consider taking a fixed rate mortgage over a period of , say, 10 or 15 years.

Other people will take out a mortgage on their overseas property to reduce the net value of their home overseas and so, in most cases, the inheritance taxes payable in the country where the property is located.