Second home owners 'panic buying' euros as pound falls in value
Second home owners 'panic buying' euros as pound falls in value
Travellers and second home owners are bulk buying euros. The falling value of the pound against the euro has led people to exchange large amounts amid fears the rate could deteriorate further.
Families planning
October half term holidays in Europe and holiday home owners with a euro mortgage are "panic buying" the currency, according to The Daily Mail. Sterling hit its lowest level in five months last Friday, with £1 worth 1.08 euros.
Currency exchange specialists told the paper that people fear that the exchange rate will worsen. World First has seen euro purchases increase by almost 50 per cent. The broker's Elisabeth Dobson said: "The big fear is that the pound will continue to fall. Clients are bulk buying euros to avoid further catastrophe. Others are delaying, hoping things will get better."
Meanwhile, exchange specialist AXIFX has issued advice for those thinking of investing in a second home in Europe, recommending a forward contract. "Anyone buying property in euros is justified in being nervous," said AXIFX's Tim Sullivan. "Economic signs suggest further falls in sterling. A forward contract allows property buyers to fix the sterling cost of their overseas property regardless of exchange rate moves. We've seen a big increase in clients asking for information on such contracts."
Those who already own a holiday home in the eurozone should talk to their broker about fixing the exchange rate for repayments, advises the paper. Travellers should use prepay money cards, such as those available from the Post Office and Travelex. Holidaymakers load up a card with euros, taking advantage on the exchange rate of the day they top up.
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