Sterling has started the year badly, dipping below 1.20 against the euro for the first time in nine months and being named the worst-performing currency in the G10.
For Britons buying or selling a home in the eurozone, this could be a good time to set rates, either to hedge against future falls or to take advantage of the euro’s strength against sterling. A contract agreeing an exchange rate for the future provides peace of mind for anyone anxiously watching sterling’s ups and downs. Foreign exchange experts World First (worldfirst.com) have seen a 211 per cent increase in enquiries for property-related transfers from those looking to buy in sterling and sell in euros in the past two weeks.
Today’s rates mean that anyone selling a €400,000 (£340,600) property in the Eurozone would make an additional €25,000 (£21,287) profit than if they had sold six months ago. Foreign exchange companies offer the opportunity to fix a rate in advance so that whether you plan to buy or sell you know exactly what rate you will get.