Britons purchasing property abroad are being warned about a common currency mistake that could cost them thousands of pounds. Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said many buyers fail to secure competitive exchange rates ahead of their transactions, leaving them vulnerable to market volatility.
Redondo noted that the mistake is particularly costly given current currency fluctuations driven by geopolitical tensions, including the war in the Middle East. He explained that more UK landlords, frustrated by domestic fiscal pressures and the Renters Reform Act, are selling up and investing in overseas rental properties, with Spain, Portugal, France, and increasingly Florida becoming popular destinations.
“I’ve been helping people with their currency transfers for years and I’ve not been this busy for a long time,” said Redondo. He highlighted a client who saved £63,500 by using a flexible forward contract to lock in a favourable pound-to-dollar rate in January, ahead of a property purchase in Florida in April. Without hedging, the client would have paid significantly more due to the dollar’s subsequent strength.
Redondo urged buyers to avoid relying on banks for currency exchange, as they often provide poor rates. “Fail to prepare and, in the forex world, the message is very simple: prepare to fail,” he warned.
