Buying property in France

Understanding the risk

Exchange rates can fluctuate up to 10% in a matter of days, and it is important to understand the impact of this on your property purchase.

For example, if you were buying a property worth 100,000 euros on 17 August 2009, you would have paid £85,360. On 13 October 2009, you would have paid £94,339. That’s a difference of £8,979 in just under a couple of months!

Tips to help protect against currency risk

You can fix an exchange rate for up to two years ahead, protecting you from negative market movements. By using a ‘forward contract’, you’ll know exactly how much currency you’ll receive – whenever you need it.

The benefits of a forward contract with Moneycorp include:

Use forward contract

• Protection against negative currency fluctuations
• Excellent exchange rates
• No commission.
• We will absorb any international transfer charges*
• Knowing exactly what you’ll have to pay for your property

Think long term if you are buying in cash

If you are buying a property in France with British pounds, buying outright for cash in the current climate will mean taking a currency risk – effectively you are putting all your eggs into one basket. By taking out a mortgage instead, you can wait for the market to come into your favour before buying the property outright.

To pay for a mortgage from overseas, you can use a Regular Payment Plan (RPP).

Don’t just use your bank

Simply using your bank to transfer money overseas can cost you thousands of pounds – Look for the best deal, as you would for your car insurance. Using a foreign exchange broker who is in the currency market, such as Moneycorp, will guarantee you get a better rate of exchange, and a more personal, pro-active service. Savings of 2% and more on exchange rates and £10 to £20 per transfer on transfer fees are very realistic (£120 to £240 per year if you’re making monthly payments).

Get expert guidance

Currency market expertise is not restricted to bank trading floors. Currency brokers like Moneycorp have teams of trained and qualified dealers who can help you through the minefields that are the currency markets.

* When making an international payment, we will ensure that the full amount arrives in your beneficiary account. However, due to the Payment Services Regulations 2009, we cannot guarantee that the bank receiving your funds will not then deduct a fee once the money has been deposited. We suggest that you contact the beneficiary bank for clarification on potential charges.