Almost 310,000 people owning homes with a euro denominated mortgage are feeling the pain of the recent euro interest rate hike. Mortgages have increased and the value of the sterling is suffering. This has forced many second - home owners to pack it up and move home.

From all indications, the problem is expected to get worse, according to Adam Jordan, senior currency expert at Moneycorp.

He commented on the near future, saying: "The markets are expecting a rate increase in the UK in October, but this is more uncertain because we haven't seen the Bank of England response to this week's inflation figures. It's possible that the gap between interest rates in the UK and abroad could widen further."

Those hardest hit by the rate changes are those living abroad and surviving on their savings accounts. They almost get a double dose of bad news with the change, as the euro gets stronger against the pound and the mortgage goes up.

Charles Purdy, Smart Currency Exchange director, commented on realistic expectations from the rate hike, saying: "If they have a large mortgage, the liability will have gone up in sterling terms. They need to realise that the size of their mortgage has effectively increased, and there is inflation in Europe, too, so that makes it even worse. People who are buying abroad now are more worldly wise than they were a few years ago, but I am telling them that they need to budget for €1.10 to the pound rather than €1.20 or €1.30."

Many of those seeking to purchase a property in France or Spain have put their plans on hold due to the latest economic news.