Euro to Sterling Exchange Rate & Why It's Important for your Adventure

Euro to Sterling Exchange Rate & Why It's Important for your Adventure

Moving to France, or even investing in a holiday home in France means that you’ll be venturing into a whole new world. In that new world, the vast majority of people you meet will speak a different language, they have different cultural values and habits and they even spend a different kind of money. Put this way, you’d be forgiven for wondering why anyone would venture into such an arrangement, but lovers of everything French just bristle with excitement at the thought and we fully understand that excitement.

We know that even if you’re only buying a low budget house as a place to lay your head for a few weeks a year, the whole prospect is thrilling. But one thing that people often forget to take seriously enough is the impact of the exchange rate on both their property purchase and their lives once they’re in France.

If your current life is run in US dollars or GB pounds, the number of euro that you can buy with either of these currencies will have a huge impact on the real cost of your property and how much life costs you once you’re in France. Taking GB pounds as an example, if we look back over the past ten years, at its highest point, £1 could have bought you more than 1,50 euro and at it’s lowest just over 1 euro. On the face of it, that doesn’t seem all that scary. However, when you start to put it into context with even a relatively conservative property purchase, at best, a 250.000 euro property would have cost you £166,666 and at worst, just over £245,000!

Add into this equation, if you estimate that you need 3.000 euro per month to live the life you want in France, by funding this in sterling, the difference in the exchange rates would have meant that in the good days, this would have cost you only £2000 and in the bad days almost £2950. In some ways this is even scarier but the scariest thing of all is that people often don’t think about this when they’re making their decisions.

At, we like people to go into their new lives with their eyes wide open, which is why we encourage everyone to consider the impact that the exchange rate will and could have on their lives.

While none of us can change the exchange rates, we can all plan our lives so that we are prepared for fluctuations. Knowing the impact that a change in exchange rate is likely to have on either the real cost of your new French house or the cost of your lifestyle when you are in France will not only put you in a position of power, it will also give you more peace of mind. At my-french-house, we offer commission-free foreign exchange that comes with great service and sound advice. We do this because we want you to be able to plan your currency exchanges with confidence and freedom. In order to trade any currency with complete confidence, you’d really need a crystal ball and even then, it wouldn’t come with any guarantees. As a result, we recommend that you have a professional on side who can tell you what the short and longer term views are for the currency.

Of late, the pound has broken through the 1,25 euro barrier and is hovering around that mark right now. From many people’s point of view, they would deem this as a good time to buy. We’d probably share that sentiment. Even though the pound might strengthen a bit, a bird in the hand as they say, means that you can probably secure yourself 1.26 at the moment and that’s a pretty good rate by recent standards.

Is there any hope of the pound reaching 1.50 again in the not too distant future? I guess we can all dream, but reality is, if you’re holding out for that, you could wait a very, very long time and of course you run the risk of the rate going down the other way!

Here are our top tips for making sure you ride the currency wave and come out without drowning:

  • Find yourself a trusted information and advice source that you have confidence in.
  • Make sure you trade commission free.
  • Make multiple transfers during uncertain times, unless there are good reasons to buy in bulk (eg. a higher exchange rate). This will allow you to take advantage of averaging.
  • Calculate the worst and best case scenarios and be prepared for the worst.

If you follow these guidelines, the chances are you shouldn’t go far wrong. But if you’d like to discuss the impact of exchange rates with us or with our currency fx experts, why not get in touch?