How to prepare for your currency exchange payments

First published: 29th November 2022 by Mar Bonnin-Palmer

If you are looking to buy a property in France and you need to exchange your funds into euros it is key to factor the exchange rate fluctuations as they will have a direct impact in the price you end up paying. Planning the best way to pay for the property is a task that should be on the top of your to do list, even before you find the property!

The advantages of planning your exchange ahead of your completion

The property purchase journey, from finding your property to receiving the keys, usually takes around 3 months. During these months, the exchange rate is continuously fluctuating. This means, although you may have agreed the value of your purchase in Euros for your property in France, if your funds are in another currency and you need to exchange them into euros, your budget is still being dictated by the exchange rate between your currency and the euro. This is when time is your key to success in ensuring you achieve a rate that is within your budget.

Often foreign exchange is left to the last minute and doing this can have drastic circumstances on your budget. You may not even be able to complete on the property you have found and secured.

Acknowledging the risk and plan the best way to manage your payments from the very beginning –even before you have found a property- will not only protect your budget but might even create an opportunity to maximise it.

Foreign exchange specialist companies –such as Moneycorp– work with buyers through the whole journey, offering free guidance and a variety of bespoke solutions to exchange your funds depending on your circumstances.

So, for instance if you are working with a tight budget and need to ensure you have certainty over your purchase price, you might benefit from the possibility to fix the exchange rate as soon as the price is agreed via a forward contract (Please note forward contracts may require a deposit).

Alternatively, for those with the appetite and the time, you can try to target an improved rate of exchange via a market order.

Finally, a foreign exchange specialist can offer you a competitive rate of exchange, potentially saving you money regardless of where the market is at the time, and some -like Moneycorp– will not charge a transaction fee for transferring the funds.

When shall I get in contact with a foreign exchange specialist?

You should get some guidance on the market early in the process as the exchange rates should be an element of your budget. Make sure you open a free account before you start inspecting properties either virtually or by travelling to France. If you find a property you can act quickly and if you don’t you can keep your account opened –at no cost or obligation- and benefit of market updates and the help of a market specialist.

Why Moneycorp?

With a Platinum Trusted Service Award 2020 from independent review site Feefo and 40 years of experience in the industry, FrenchEntrée has been recommending Moneycorp for more than 15 years. During this time they have helped thousands of client planning the best way to pay for their property as well as supporting them afterwards with any further payment from paying bills, mortgages to repatriating UK pension payments for those who have retired to France.

Furthermore, we have worked with the same person at Moneycorp for more than a decade! You might be familiar with her as she often writes for our French Property News magazine. She has 13 years’ experience in foreign exchange, and is a qualified European lawyer with experience in European transactions. Mar will be happy to answer any questions or enquiries to support you through these difficult times

Opening an account is really easy and free of cost. You can register online or over the phone in a couple of minutes and for FrenchEntrée readers there are no transfer fees in any payment.