Current Exchange Rates Could Prompt Brits to Purchase Spanish Property, Says Currencies Direct

Feb 06, 2012, 06:23 ET from Currencies Direct

LONDON, February 6, 2012 /PRNewswire/ --

The euro's depreciation against the pound, coupled with the Spanish property crash, means 2012 could provide numerous opportunities for Brits to expatriate to Spain

For all the wild celebrations and chinks of champagne glasses over the festive season, a brand new year often begins with consumers facing up to the hefty cost of Christmas overspending. Throughout January millions of Brits would have been waking up to a financial hangover; one which shrouds them in debt.

However, despite financial advice prompting consumers to save over the coming months, currency exchange experts, Currencies Direct claims 2012 could prompt millions of Britons to realise their dreams and purchase housing property in Spain.

But why now?

It's been widely reported that European political indecision is scuppering any chance of a short-term euro-zone revival. However this, coupled with the British economy's strong last quarter showing in 2011, is causing the euro's value to slowly depreciate against the pound- a favourable exchange rate for Brits looking to purchase abroad.

Currencies Direct reports that the pound to euro exchange rate is currently floating around the 1.2 mark, a rate which hasn't been seen since autumn 2010. This means Spanish property seems that little bit more affordable in the eyes of British holiday buyers and is slowly causing an increase in demand for villas and apartments along the Costa shorelines. However it is not the sole reason.

People that bought their properties back in the boom of the early 2000s (when the Euro rate was 1.54) are now selling at the same price, but still making the 20% mark up on FX, so there is a two side benefit for the EUR - GBP to be at this rate because the market currently satisfies both ends of the market.

The Spanish property market is in a slump at the moment: preoccupied with falling values, negative equity and a glut of unsold property. Most experts agree more price falls are inevitable in 2012, but even if Brits, buoyed on by market conditions, decide to purchase property in Spain, the prospect of getting a Spanish mortgage is pretty bleak at the moment. According to TINSA, a Spanish property commentator, the best way could be to somehow try and remortgage money from your existing British home. Either way, the champagne may have to be kept on ice.

About Currencies Direct

Currencies Direct is one of Europe's leading non-bank providers of foreign exchange payment services. Since its formation in 1996 Currencies Direct has evolved and positioned from being an innovative service provider of foreign exchange for consumers and high net worth individuals into a dynamic and pioneering 'business to business' fully integrated treasury solution service provider.  Head quartered in the City of London (United Kingdom) with operations in Europe, Africa, Asia and the United States, Currencies Direct is part of the Azibo Group, a privately owned investment company.

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SOURCE Currencies Direct