The pound’s rebound – foreign homes cheaper this autumn!
On the verge of needing to buy euros for an overseas property purchase? Then now could be an ideal time after the exchange rate swung back in favour of Brits, thanks to the confidence boost the Scottish ‘No’ vote has brought, slow economic recovery in Europe and hints that an interest rate rise in the UK could be on the cards.
Now, at the start of October and with autumn about to set in, the pound is hovering around a two-year high against the euro at £1/€1.28, while against the dollar it is £1/$1.62. Even just three weeks ago – in the run-up to the Scottish referendum – anyone making a high value pound-euro transfer would have received a worse deal than today. The rate then was in the mid £1/€1.24s.
In real terms, this means that at today’s rate of £1/€1.28, a £100,000 property abroad would cost £78,125 (based on interbank exchange rates), while three weeks ago when the rate was £1/€1.245 it would have cost £80,321 – approximately £2,000 more – the cost of a new kitchen or bathroom in your new holiday home!
It is usual for important political or economic results to cause volatility in the currency – and other financial – markets. For anyone whose money could be affected by such movements, speaking to experts before your funds are exposed makes sense. Currency specialists like Smart Currency Exchange not only offer better exchange rates than high street banks, but they understand how exchange rates might react to key economic events and can propose ways to protet the value of your funds – something that is vital for someone intending to use pounds to buy an overeas property that is priced in a foreign currency.
Find out more about how Smart Currency Exchange could help you save money and send money abroad safely by downloading their free guide.