Why is foreign exchange relevant when you’re buying a property overseas?
Whether you are buying a holiday home on the beach, an apartment in the city, or a chalet in the Alps, buying a property abroad should be exciting and stress-free. However, dealing with a different process, often in a different language and a foreign currency, can add a layer of complexity to purchasing your dream home.
Currency markets are unpredictable, and foreign exchange rates are constantly fluctuating. This means that when you decide to buy a property abroad, the real-term cost of your purchase can change with the rates. It is also important to be aware that during the gap between exchange and completion there can be up to a 3-month period where we can see a lot of volatility.
Imagine getting to the point of buying the property, and the price is different from when you made the offer. That’s the reality of the foreign exchange market – small changes make BIG differences when you exchange a large amount of money.
Who is Moneycorp?
Moneycorp is our trusted foreign exchange partner. Established in 1979, Moneycorp has led the way in foreign exchange, helping countless people and businesses to make safe, secure, and cost-effective cross-border payments.
We work directly with Mar and Toby from the Moneycorp private client desk who provide our clients with expert guidance on the market and specialised foreign exchange tools to manage and maximise your FX payments.
They work with you from consolidating your funds to exchanging those funds into the currency you need in the most cost-effective way and finally delivering them safely to the Notaire or the designated beneficiary.
After the purchase, they will also support with anything from paying bills or your mortgage overseas or any non-property related requirements you may have.
What can Moneycorp offer?
- Price – Competitive pricing on your foreign exchange exposure, typically saving 2%+ compared to highstreet banks
- Expert guidance – Each client is allocated to a market specialist to help guide clients through the exchange and payment process to ensure they make the informed decisions to protect and maximise their budget.
- Security of funds – Clients funds are held in segregated client accounts separate from the business.
- Local accounts – Moneycorp provide our clients with a solution to utilise their local accounts. This means you do not need a local Euro account in France to facilitate your payment to the Notary during deposit and completion.
Why Moneycorp?
With a Platinum Trusted Service Award 2024 from independent review site Feefo and 40 years of experience in the industry, we recommend Moneycorp for your international payment needs.
Its expert team of dedicated foreign exchange managers have extensive experience in the overseas property market and will talk you through the specialist products and tools you can use to ensure your money goes further and help you to make the relevant payments needed during your property purchase or sale process. There are no online transfer fees, and Moneycorp will get your money to where it needs to be quickly and securely.
It is licenced and regulated across multiple key jurisdictions and offers over 120 currencies across 190 countries, partnering with some of the world’s largest banks to give our clients access to comprehensive coverage and the most competitive rates.
Alternatively, contact the team directly using our bespoke email address: wendyshouses@moneycorp.com
Currency tools to help with your property purchase:
Forward contract* – A forward contract is very popular among property buyers. It allows you to fix the exchange rate for up to two years as soon as the purchase is agreed upon – so the property’s price is not affected between your first and final payment. It can also be used to take advantage of a favourable rate movement that could allow you to maximise your initial budget.
Market orders – Market orders allow you to try and target the rate that you want to complete your transaction. It is a good tool for those buyers who are optimistic that the exchange rate might improve.
Regular payment plan – These a great for those with regular payments abroad. With everything from your mortgage to the local estate agent fee, you will need to make several international payments when buying your holiday home or foreign property. We help deliver a highly competitive rate and an easy setup for weekly, monthly, and other regular payments.
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 our clients there are no transfer fees for any payment.
Open a free account today by clicking here.
Contact Moneycorp at +44 (0)2078287000
Send your enquiry to the team at wendyshouses@moneycorp.com
*Forward contracts may require a deposit
None of the information contained in this article constitutes, nor should be construed as financial advice. Moneycorp Financial Risk Management Limited (company number 5774742) is registered in England. Its registered office is at Floor 5, Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. Moneycorp FRM is a trading name of Moneycorp Financial Risk Management Limited is authorised and regulated by the Financial Conduct Authority for the provision of designated investment business (firm reference number 452443). Moneycorp is a trading name of TTT Moneycorp Limited and is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017 (reference number 308919) for the provision of payment services. Approved on XX/02/2023.
