Purchasing a second home and paying off a French mortgage 

As a UK or US resident purchasing property in France, you’re immediately exposed to currency fluctuations. If you’re also taking out a Euro mortgage for the purchase, your FX exposure doesn’t end at completion—it continues with every monthly repayment. 

Fortunately, currency specialists like Moneycorp are designed to help simplify your international payments, making it easier to manage your finances abroad. 

Let’s explore a theoretical case study based on common scenarios faced by international buyers. 

In April 2025, Alex and Emma, a couple from the UK, decided to purchase a holiday home in Aix-en-Provence, France—a dream they had nurtured for years. They found a charming property and agreed on a purchase price of €620,000. With all their savings in Pounds Sterling, they arranged a 50% down payment and secured a €310,000 mortgage. 

Their plan was to pay off the mortgage in full once they relocated permanently and sold their UK home. In the meantime, they needed to manage both a lump sum transfer and ongoing monthly repayments in Euros. 

TIP: Currency markets are volatile. The exchange rate can shift significantly between offer acceptance and completion, and even more so over the life of a mortgage. Planning ahead and understanding your FX options is essential. 

From Search to Completion 

10 April 2025 – Currency Consultation 

Alex and Emma were introduced to a currency specialist through FrenchEntrée. They scheduled a consultation to explore their options for managing the upcoming property purchase and future payments. 

18 April 2025 – Opening an Account & Paying the Deposit 

They opened a Moneycorp account and used a spot contract to pay their €30,000 deposit at a rate of 1.16. They also asked to be notified if the market reached 1.18, which would be more favourable for their remaining funds. 

2 May 2025 – Locking in with a Forward Contract 

When the rate hit 1.18, they secured a forward contract for the remaining €280,000. This allowed them to lock in the rate ahead of their 15 July 2025 completion date. 

Forward Contract: A tool that lets you fix an exchange rate for a future date, protecting you from market volatility. Typically requires a 10% deposit. 

Completion and Currency Impact 

15 July 2025 – Completion Day 

Thanks to their forward contract, Alex and Emma were protected from a less favourable rate of 1.11 on the day of completion. 

Here’s how the exchange rate affected their Pound Sterling cost: 

• @1.16 = £267,241 

• @1.11 = £279,279 

• @1.18 = £262,712 

• Variance = £16,567 

By locking in at 1.18, they saved over £16,000 compared to the rate on completion day. 

Aftercare: Managing Ongoing Payments 

Alex and Emma also needed to manage their monthly mortgage repayments. Their currency specialist set them up with 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 protection from rate movements. 

Alternatively, they could choose to manage payments manually through the online platform.