Brits prefer to gamble on volatile currency markets

UK investors would prefer to gamble their dreams of owning a property abroad on volatile currency markets rather than fix the exchange rates according to currency exchange specialists FC Exchange.

Nick Fullerton, MD of FC Exchange, said: “Less than 10% of those transferring Sterling to Euro are taking out Forward Contracts, a tool to freeze exchange rates. This means that most buyers are gambling their life savings or pension funds on exchange rates moving in their favour.

“People still hope that the Sterling/Euro rate will return to the levels they saw before Christmas but there are no signs of that happening in the near future. We have offered people the opportunity to use Forward Contracts since then yet over 90% have chosen to risk thousands of pounds of their money and the dream of owning a property abroad.”

A Forward Contract allows you to freeze currency exchange rates on a large transaction for up to 2 years from the date you take out the contract. You pay a 10% deposit and repay the remaining 90% at the end of the contract period.

The Euro is now over 10% stronger than it was before Christmas making a £200,000 property £20,000 more expensive. Even the movement in the markets over a couple of days can make the difference between owning a property and no longer being able to afford it.