Rate benefits of overseas mortgages at risk through uncompetitive currency transfers

Nearly a third of all Brits buying property in France are choosing French mortgage providers according to Crédit Foncier de France, France’s number one mortgage provider.

French mortgages are typically cheaper than in the UK however, foreign exchange specialists HiFX warn that these property investors could be exposing themselves to excessive bank charges and unnecessary currency risk – negating the benefits of money saved on the great rates they are negotiating.

Mark Bodega, Director at HiFX explains, “More and more Brits are attracted to the cheaper rates offered by French Euro mortgages. However most people completely forget to take into account the transfer charges levied by their bank and the currency risk associated with transferring money abroad. To make the most of good French mortgage deals Brits need to consider how they are going to transfer money abroad to meet the repayments. Using a currency specialist could save them over £800 a year or £12,600 over the typical life span of a mortgage on bank charges alone”.

François Drouin, Chairman of Credit Foncier de France, comments “Overseas buyers now make up a significant part of the French property market and are keen to take advantage of French financing options. Our customers want to make the most of their property investment and protect themselves against currency risk. Therefore, we’ve teamed up with currency specialists HiFX to launch a set of products specifically designed for the British market.”

According to Crédit Foncier, the value of cross border mortgages in the French property industry is increasing by approximately 50% a year to €6bn in 2006. Overseas buyers now make up over 6% of the French property market and almost half of these are British or Irish.

Crédit Foncier, has begun working with HiFX because most high street banks charge to transfer and receive payments and are unlikely to offer the most competitive exchange rates. Using a currency specialist, such as HiFX, eliminates bank charges and, through their regular payments abroad service, allows people to fix the exchange rate of their mortgage repayments for up to two years.

“In addition to saving money, the regular payments service from HiFX enables Brits with overseas mortgages to fix exchange rates for up to 2 years into the future. The service is designed to remove the stress organising regular currency transfers can create so the process is fully automated via direct debit and guarantees customers will never miss a payment”. says Bodega.