Exchange rate fees
Will you have to budget for fees for moving your money to France? It depends on which service provider you use. High street banks are likely to charge you a fee to send money abroad. However, reputable currency brokers usually don’t charge a fee – because of their size and sole focus on foreign exchange, brokers can offer highly competitive exchange rates as well, making sure you get the most for your money. Instead of being a ‘cost’, the services of a currency broker can actually help you deal with the other outlays involved in purchasing a property more easily.
Depending on the type of transfer you make, there may be upfront costs to consider. Many people intending to purchase a foreign property like to use a forward contract to protect them from currency risk. With a forward contract, the exchange rate at the time the contract is arranged is fixed for up to two years.
When the time comes to transfer your money, you do so at the exchange rate you secured and not at the current market rate. This can make a difference of thousands of euros if the markets weaken while you are negotiating your purchase. It also helps you to budget, as you’ll always know exactly how much sterling you’ll need to get the required sum of euros.
You may have to pay a deposit when you take out a forward contract – it’s a legally binding contract that must be honoured – but this isn’t an extra cost, as it’ll be transferred into euros at the same time as the rest of your money is sent to complete the purchase.