Iceland, with its natural wonders, breathtaking scenery and fantastic spas, had always been top of my wish list of places to visit. Until now there had always been one little snag – Iceland was known as one of Europe’s most expensive destinations. But with the exchange rate currently in our favour, there’s never been a more affordable time to visit the country.

So with a friend, Alice, I booked a bargain break to the sub-arctic capital of Reykjavik, figuring that at the same time we’d be helping to boost Iceland’s economy.

From the moment the plane began its descent we were spellbound by Iceland’s incredible landscape. With its great volcanic lava fields, bubbling mud pools, icy waterfalls and geysers bursting out of the ground, it’s one of the most amazing places either of us had ever visited.

Our first stop was an excursion to the magnificent Blue Lagoon, a 45-minute drive outside Reykjavik. This natural steaming pool is set in the middle of a lava field on the Reykjanes Peninsula.

Stepping into the geothermal sea water, it was easy to see why this is one of Iceland’s most popular attractions. Its bright blue waters, with their rich mineral content, are a luxurious 37-39°C. After slathering ourselves in lagoon mud that claims to have therapeutic qualities, it was sheer bliss to lie back and wallow. We both emerged revitalised and glowing.

Breathing in Iceland’s clean fresh air, we wandered into the heart of the capital city. With a small population of around 115,000 – there are only 300,000 people in the whole of Iceland – it was a pleasure to stroll through the Skolavordustigur area of Reykjavik without having to battle crowds. And we were stopped in our tracks by the stunning architecture of the tower of Hallgrimskirkja Church.

After sampling some of the capital’s finest organic fish, we took a boat to see the illuminating new landmark just off the coast of Reykjavik, Yoko Ono’s Imagine Peace Tower. Engraved with 'imagine peace' in 24 different languages, its beam of light shone 20 metres into the sky.

But by far the highlight of our trip was taking a drive to witness the Northern Lights (the aurora borealis) shimmering across the night sky in streams of green and red. A truly unforgettable sight.

Rachel Warren

Our hot tips

• The long-awaited arrival of lighter nights in Iceland is celebrated annually with a national holiday. This year the first day of summer falls on 23 April.
• The Imagine Peace Tower will be switched on from 21-29 March and on other special occasions.

Getting there

Icelandair offer return flights from London Heathrow to Reykjavik from £218*. For further flight details visit the www.icelandair.co.uk. Hotel accommodation, including breakfast, at the CenterHotel Arnarhvoll starts from around £74 per person per night, and is based on two adults sharing. Visit the www.centerhotels.com. For more on Iceland go to the www.icetourist.is.

*Prices may be subject to change