Well, it would appear that today’s interest rate increase to 0.75% has helped to lift the Pound slightly against the Euro - although it is still dawdling along below 1.13.
Reading the reports on poundsterlinglive.com much of what may happen to the exchange rate will depend on the Brexit deal and they feel that the interest rate rise will not have a lasting effect. They speculate that, should the UK obtain a satisfactory deal with the EU, then the rate could climb to close to 1.20 next year.
What a dilemma!! We are planning our house purchase for October this year - possibly just about the worst time as it stands for the exchange rate. As I am cashing in a large proportion of my SIPP pension to fund this, the timing is going to be important to minimize losses.
I can feel a frank discussion coming on with my in-laws about timing this purchase. Pulling my SIPP early will cost me both now and in the future. However, delaying the purchase in the hope that the exchange rate improves may be a fallacy as the UK may crash out with no deal and the rate could be worse than parity.
You are certainly between a rock and a hard place Carl.
Not ideal I know, but is it possible to delay the purchase for a little while ?
Is there still the 3 months compromis de vente between family members ?
A really difficult decision to have to make…I don’t envy you !
We had a similar problem last year, waiting for a spike. Then Theresa May called an election and we moved all our money the next day because for once a politician actually made a difference to us. we were lucky because the rate soon dropped again.
Anyone care to comment on current exchange rate? We transferred some yesterday but despite seeing 1.12 ish FCcurrency exchange only gave us 1.10. are they no longer competitive, is it time to look for another FX company?
We try to avoid them all John and make ‘big payments’ via my UK Master Card, (where we pay fees too).
But, if tomorrow, the rate goes to 1.20, (unlikely), I will be emptying my UK account, via the most favourable FX Comp’