A realistic example of a client managing FX Exposure When Buying in France

Buying a second home is often about creating a peaceful retreat. But the process of purchasing and maintaining a property abroad—especially in France—can bring its own set of challenges, particularly when it comes to managing foreign exchange (FX) risk. 

Let’s explore the journey of Alex and Priya, a couple from the UK, as they navigate the process of buying a holiday home in Provence, from property search to completion and beyond. 

The Case at a Glance 

In March 2025, Alex and Priya, based in Manchester, decided to fulfil their dream of owning a holiday home in the picturesque region of Provence, France. They found a charming countryside villa listed at €520,000 and agreed on the purchase price. Like many UK-based buyers, their savings were held in Pounds Sterling. 

They secured a mortgage for 50% of the property value, leaving them with a €260,000 loan to be repaid monthly in Euros. 

TIP: Currency markets can fluctuate significantly between the time you agree on a purchase price and the completion date. These fluctuations can also affect your monthly mortgage repayments. Planning ahead and understanding your FX exposure at every stage is crucial. 

From Search to Completion 

15 March 2025 – INTRODUCTION TO A CURRENCY SPECIALIST 
Alex and Priya were referred to a currency specialist by a property consultant in Aix-en-Provence. They scheduled an initial consultation to explore their options for managing the currency exchange ahead of their completion date in June. 

21^st May 2025 – OPENING AN ACCOUNT & PAYING THE DEPOSIT 
They opened a currency account and transferred their €26,000 deposit using a spot contract at a rate of 1.1840. This was significantly better than the rate offered by their UK bank, saving them hundreds of pounds. 

During this time, they also discussed market trends with their specialist. With the potential for the rate to improve, they set a target rate of 1.1850 for the remaining funds. 

26th May 2025 – LOCKING IN A FORWARD CONTRACT 
When the rate hit 1.19, Alex and Priya locked in a forward contract for the remaining €234,000. 

*Forward Contract: A tool that allows you to fix an exchange rate for a future date. It’s commonly used by overseas buyers to protect against currency fluctuations. A deposit (typically 10%) is usually required. 

This gave them certainty over the cost of their property in pounds, regardless of market movements, and allowed them to stay within budget. 

Outcomes and Considerations 

3rd July 2025 – COMPLETION DAY 
On completion day, Alex and Priya transferred the final funds. Thanks to their forward contract, they avoided the less favourable spot rate of 1.1550 on the day. 

Here’s how the exchange rate impacted their cost: 

• @1.1840 → £219,594.59 

• @1.19 → £218,487.39 

• @1.1550 → £225,108.23 

• Variance = £6,621 

Aftercare 

Their FX exposure didn’t end at completion. With a Euro mortgage to repay monthly, they needed a reliable way to manage ongoing payments. 

Their currency specialist recommended a Regular Payment Plan, which: 

• Automates monthly transfers via direct debit 

• Sends funds directly to their French bank account 

• Offers the option to fix the exchange rate for up to 24 months, providing certainty over monthly costs

Alternatively, they could manage payments manually via an online platform, with guidance from market experts on the best times to exchange.