Don't Use Your Bank for Foreign Property

The Sunday Times - 16 July 2006

By Claire Francis

PEOPLE buying second homes abroad are losing thousands of pounds in currency exchange because they use high-street banks rather than specialist foreign-exchange brokers...

Despite this, 86% of people buying abroad still use their bank, according to research from Commercial FX, another forex broker, which is owned by International Currency Exchange...

Another benefit of brokers is that you can fix the exchange rate, often for up to two years. This means you can avoid currency fluctuations - a good idea if you are buying abroad.

Currency movements can have a big impact on the amount you end up paying for the property because of the time it takes for the purchase to complete. If the pound weakens during that time, you would pay more for the property than you were expecting. But if the pound strengthens, the property would cost you less...