Save thousands on your French holiday home
PUBLISHED: 11:47 12 February 2020
© paul prescott
Here's how a currency broker can bring your dream home within reach
International Currency Provider of 2019, TorFX, explains the services you could use to get the most for your money.
If the drizzly winter weather is starting to get you down, it might be time to buy that holiday home you've always dreamed of. Brexit or no Brexit, France remains one of the most popular destinations for Brits looking to buy a holiday home overseas.
With iconic culture, food (wine!), and a choice of idyllic rural or busy city living, France really does have it all. But while soaking up the romance of a move to France is all well and good, there are, of course, some practicalities to consider.
Purchasing that holiday home means exchanging your Pounds for Euros, and when you're moving significant sums you can't just turn to the Bureau De Change. Your local high street bank will make the necessary transfers for you, but most will charge fees and fail to offer a competitive exchange rate.
Let's say you find your perfect French property when the GBP/EUR exchange rate is 1.17 (meaning you receive 1.17 Euros for every £1) and the property is priced at €280,000 Euros. At this time your purchase will cost £239,316.
However, as you make arrangements to transfer the money from your UK account to France the GBP/EUR exchange rate drops to 1.14. Suddenly the price of your overseas purchase has jumped to £245,614. This seemingly small fluctuation in the exchange rate would add over £6000 to the cost of your new holiday home.
But how do you know the right time to move your money? That's where leading currency providers like TorFX come in.
They'll over you a more competitive exchange rate than banks (for starters) and won't charge you transfer fees. They can also keep you up to date with the latest currency news, so you always know what exchange rates are up, to and they offer a range of other handy services.
Forward contracts are one such service. With a forward contract you can fix the exchange rate for you to two years ahead of making a transfer. While you might miss out if the exchange rate strengthened, you'd be protected from any negative market movements.
Or you could use a rate alert to target a specific exchange rate. Simply set the rate you want to achieve, and you'll be notified by text or email if the market moves to that level.
Taking the time to explore your transfer options could help you make serious savings on the purchase of your property - leaving you with more to spend on your holidays!
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