By Matthew Boyle
Wednesday this week saw the official start of the Autumn season signalling the inevitable onset and of colder weather in the UK.
Whilst we await the temperature dropping lower reports have emerged this week of potential gas shortages in the UK, which for many is of grave concern.
Alongside this brewing crisis we are also being given stark warnings of fast-growing supply chain failures due to labour shortages in the UK- A combination of Brexit reducing the number of foreign workers and Covid forcing many to isolate.
The result of this shortage will leave food to rot in fields and that which remains fewer lorry drivers struggling to deliver.
To add to this Covid rates are on the rise with warnings of potential snap lockdowns to try to curb rising numbers as the virus known to thrive in colder weather.
Many reading this may be planning or perhaps packing for trips to view properties abroad – some for a holiday home and others for a new start in warmer climes.
Positive news for Pound
Yesterday did see perhaps some positive new however as the Bank of England indicated the UK is still on track raise interest rates early in 2022 which then triggered a rise in GBP rates.
GBP>EUR moved close to the best levels we have seen since February of last year and GBP>USD rates recovered around a cent following a drop earlier this week after news emerged a quick fix UK-US trade agreement would be almost impossible.
With GBP>EUR rates stagnant in recent weeks it seems whilst the cold sets in the market might be heating up… well at least for now.
Many property buyers reading this are likely now seeing the best rates since you began your search and as such you may like to take advantage, and you can.
By utilising a forward contract you can fix the exchange rate now for a future date with only a 10% deposit.
So, you can secure your funds for the next stage of your purchase or the entire amount with only a small amount of GBP needed now.
This fixes the rate, protecting your budget and giving you the reassurance should the rate drop that you are unaffected, and with buying levels the best they have been in some time this would be far from a bad idea. What might come to be simply knee-jerk improvement in rates now would be fast eroded should concerns rise or any of the above issues escalate.
The resulting effect would be a costly increase for those buying Euros and property overseas.
So, call us and speak to your broker today for some guidance on how to remove what looks to be a fast-growing risk.
But who knows… we may well get through these colder months, watching Covid retreat, unscathed by any crisis and seeing rates break through the current highs. The question is whether you want to take the risk.
Today we have few economic releases of note other than German Business climate and expectations data released at 8am so expect market rates to remain largely driven by sentiment and current affairs.