If you are buying in France and holding a currency other than Euros, it is more important than ever to get good guidance on the best way to exchange your funds. Your property price will depend heavily on the exchange rate applied and therefore it is crucial that you account for this from the moment you put an offer in, right through to completion.
The challenge with exchange rates is that they are constantly fluctuating and these movements are often fast and can be quite sharp. The GBP/EUR rate on the 18th February 2020 was 1.20 and one month later on the 18th March 2020 it fell to 1.05. The impact on the cost of a property before and after COVID was substantial especially for certain currency pairs. The USD/EUR trend was slightly different and after a spike back in March the currency pair fell last week to its lowest level since January 2019 when it hit 1.1535.
So, how do you navigate these fluctuations and make sure that they do not ruin your budget?
High Street banks and online only platforms often miss an important element which is key on the process of exchanging your funds – timing. Having access to the right guidance on the market and the tools to help plan your purchase is vital. This is one of the main advantages of using a foreign exchange specialist.
A foreign exchange company such as moneycorp treats each customer as a unique individual and with this in mind each account is assigned to a personal dealer who will discuss the specific circumstances with the client (budget, timeline, personal situations…) in order to guide them on the time and best way to exchange the funds from the deposit to the completion, and even post-purchase.
With a foreign exchange specialist you would have instant access to a variety of tools to help you plan to make the most of your money:
Currency updates- Sign up to receive daily updates on the rates and even rate alerts to make sure you don’t miss any opportunity. We monitor the markets, so you can focus on what matters.
Watch order- They will monitor the markets on your behalf and notify you if a preferential rate is triggered.
Market order- You could target a rate of exchange and if the rate moves to that level they could buy the funds for you automatically so you never miss an opportunity. With the same principle they can set up a limit order to protect your transaction in case the rate falls below certain level.
Forward contract- This allows you to fix a rate of exchange in advance of a payment –up to 2 years. This tool is very popular among property buyers as allows them to fix the whole price of the property ahead of completion giving them the peace of mind and the certainty of how much they are going to pay for the property. Also it can be a great way to take advantage of a positive rate movement, and for future mortgage payments. (Forward contracts may require a deposit).
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 dealer.
Opening an account is really easy and free of cost or obligation. You can register online or over the phone in a couple of minutes and for FrenchEntree there are no charges in any payment.
With a Platinum Trusted Service Award 2020 from independent review site Feefo and 40 years of experience in the industry, FrenchEntree 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 FrenchEntree magazine. She has 13 years experience in foreign exchange plus she is a qualified European lawyer with experience in European transactions. Mar will be happy to answer any questions or enquiries to support you through this difficult times.
Open a free account today by clicking here.
Contact moneycorp at 020 3773 6355
Send your enquires to Mar at [email protected]