From securing your exchange rate to tracking international payments, discover how planning ahead and working with a dedicated currency specialist can protect your French property purchase.
Buying a property in France is an exciting investment whether you’re purchasing a holiday home, relocating permanently, or simply expanding your property portfolio.
But while most international buyers spend considerable time researching properties, negotiating prices and arranging mortgages, one important aspect is often overlooked and that is currency exchange.
If your money is held in another currency such as sterling, US dollars, Swiss francs etc. exchange-rate fluctuations can significantly affect the final cost of your French property.
The good news? With the right planning, tools and professional support, you can reduce uncertainty, manage your international transfers and retain greater control over your money.
1. Exchange-rate movements can change your property budget
Imagine you’ve agreed to purchase a beautiful property in France for €500,000.
When you first make your offer, the exchange rate is £1 = €1.20. Your property therefore costs approximately £416,667.
However, by the time you complete your purchase, sterling has weakened to £1 = €1.15.
The cost of a €500,000 property in pounds sterling
At £1 = €1.20
£416,667
At £1 = €1.15
£434,783
An additional £18,116 for exactly the same property.
That’s more than £18,000 extra, without any change to the agreed property price.
For buyers working with a fixed budget, these fluctuations can influence their deposit, renovation plans or even their ability to complete the transaction.
And because a French property purchase can take several months between signing the compromis de vente and the final deed, there’s plenty of time for exchange rates to move.
Your currency strategy should work alongside your French mortgage
For international buyers arranging a French mortgage, currency exchange should form part of the overall financing strategy from the beginning.
Your mortgage adviser can help establish how much you need to contribute in personal funds, including the deposit, purchase costs, banking fees and any additional liquidity requirements.
As part of our prequalification process, we do recommend that you speak to a currency specialist and will gladly put you in touch with our trusted partner Lumon. Your currency specialist can then help you plan how and when to convert and transfer those funds.
If you’re receiving income in a foreign currency but repaying a French mortgage in euros this relationship may continue well beyond completion.
Working with professionals who communicate with one another can help ensure your financial arrangements are coordinated throughout the purchase and beyond.
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