Cretan-homes, Crete property estate agents

The exchange rate from GBP to EUR has recently hit the lowest ever level in the Euros 9 year history.   This makes a big difference when budgeting to buy a property abroad.

In fact a €150,000 property purchased at the end of January 2008, would cost nearly £8000 more than only 3 months ago, purely due to exchange rate fluctuations.  That’s £8000 more in the time it can take from sending a deposit, to paying the balance for your property! 

So what has caused the rate to fall?

Some of the main reasons for the rate falling away are:

·         The ‘Credit Crunch’

·         Interest Rate Cuts

·         House price decreases in the UK

·         The Northern Rock fiasco

The UK economy is not as strong as 12 months ago. House prices have fallen 3 months in a row, the Bank of England have cut Interest rates, and are predicted to cut them again as many as 3 more times during 2008, and confidence in the Banking sector is at an all time low.

Analysts are forecasting this gloomy story to continue throughout the year, so the exchange rate could well fall further. 

Foreign Currency Direct Plc are able to save you money compared to using banks when moving money abroad.  A specialist currency broker will also have different types of contract available, such as a ‘Forward Contract’ to protect you from currency fluctuations that we have seen recently, and make sure that when you come to pay for your property, it still costs the same as you have budgeted for when you agreed to purchase your dream home!  If you would like more information feel free to contact Colm Gilhooly on This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or call on +44 1494 725 353, or alternatively visit www.currencies.co.uk and quote Cretan Homes.