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Unlocking financial flexibility with forward contracts for UK expat mortgages
If you’re an expat or overseas investor navigating a UK expat mortgage, you know currency exchange rates can make or break your plans. Whether you’re converting an overseas deposit into GBP or sending rental income back home, timing the market is tricky.
That’s where forward contracts come in: a powerful tool offered by our FX specialist partner to lock in exchange rates and hedge currency risk. Some of our clients are already using this to save thousands and plan with confidence. Curious? In this blog we’re going to break it down and explore how it works for you.
What is a forward contract? A simple explanation
A forward contract lets you secure today’s exchange rate for a future date, ensuring you know exactly what you’ll pay or receive when exchanging currency, whether it’s next month or next year. With just a small deposit (often 5%), you reserve that rate through our FX specialist partner, protecting your expat mortgage or overseas investment from unpredictable rate swings. It’s like booking a great deal now and picking it up when you need it!
Why forward contracts matter for expat mortgages
Exchange rates fluctuate daily, impacting everything from UK mortgage payments to overseas property investments. A forward contract gives you control, letting you lock in exchange rates and avoid losses.
Below, we’ve outlined 10 real ways our clients are using forward contracts to boost their financial strategy, complete with money-saving examples:
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Securing a Year of UK Mortgage Payments
Example: A US-based client with a £2,000 monthly mortgage (£24,000/year) locked in a USD/GBP rate of 1.20 (£24,000 = $28,800) using a 5% deposit ($1,440). When rates dropped to 1.30, they saved $2,400 over the year—paying each month at the secured rate.
Why it works: Hedge currency risk and keep your UK expat mortgage predictable. -
Buying Off-Plan Property in the UK
Example: A Dubai client needed £200,000 for an off-plan flat. At an AED/GBP rate of 4.50 (£200,000 = 900,000 AED), they used a 5% deposit (45,000 AED). When rates dropped to 4.80, they saved 60,000 AED.
Why it works: Secure completion funds for UK property investment without tying up cash. -
Protecting Mortgage Deposits
Example: A Hong Kong client locked in £50,000 at an HKD/GBP rate of 9.5 (£50,000 = 475,000 HKD) with a 5% deposit (23,750 HKD). When rates dropped to 10, they saved 25,000 HKD.
Why it works: Safeguard your UK expat mortgage deposit from currency dips.
Want to protect your deposit? Get a quote from Liquid Expat Mortgages now and see how we can help. -
Managing Relocation Costs
Example: A Singapore client secured £5,000 for moving costs at an SGD/GBP rate of 1.60 (£5,000 = 8,000 SGD) with a 5% deposit (400 SGD). A drop to 1.70 saved them 500 SGD.
Why it works: Keep relocation expenses predictable with your expat mortgage. -
Fixing Renovation Budgets
Example: A Canadian client locked in £20,000 for a UK renovation at a CAD/GBP rate of 1.65 (£20,000 = 33,000 CAD) with a 5% deposit (1,650 CAD). When rates fell to 1.75, they saved 2,000 CAD.
Why it works: Enhance UK property value without currency surprises. -
Maximising Currency Gains
Example: A Japan-based client secured £10,000 at a JPY/GBP rate of 180 (£10,000 = 1,800,000 JPY) with a 5% deposit (90,000 JPY). When rates dropped to 190, they saved 100,000 JPY.
Why it works: Turn currency exchange into a profit opportunity. -
Supporting Family Across Borders
Example: A South African client locked in £6,000/year for family support at a ZAR/GBP rate of 21.0 (£6,000 = 126,000 ZAR) with a 5% deposit (6,300 ZAR). A drop to 23.0 saved 12,000 ZAR.
Why it works: Reliable transfers tied to your expat mortgage strategy. -
Planning Big Purchases
Example: A UAE client secured £30,000 for a UK car at an AED/GBP rate of 4.50 (£30,000 = 135,000 AED) with a 5% deposit (6,750 AED). When rates fell to 4.80, they saved 9,000 AED.
Why it works: Future-proof expat lifestyle investments.Are you planning a big purchase? Contact us to explore how forward contracts can save you money.
Why partner with Liquid Expat Mortgages and our FX Specialist?
At Liquid Expat Mortgages, we’re more than just mortgage brokers, we’re your financial allies. Our FX specialist partner empowers you to lock in exchange rates, save money, and plan ahead with as little as 5% upfront.
Whether it’s a UK expat mortgage, buy-to-let investment, or overseas property purchase, our clients are already reaping the rewards. Ready to take control of your currency exchange? Get a quote from us today or find out how this can work for your unique situation: just reach out to our friendly and knowledgeable team.
Disclaimer:
The content of this article is provided for informational and illustrative purposes only and is not intended as financial, legal, or tax advice. Liquid Expat Mortgages is authorised and regulated by the Financial Conduct Authority (FCA) to provide mortgage and protection advice. However, the FCA does not regulate certain investment mortgage contracts, and any views expressed herein may include unconventional or contrarian perspectives that do not necessarily reflect standard industry practices or regulatory guidance. Your home or property may be repossessed if you fail to keep up repayments on a mortgage or any other debt secured against it. We are not authorised to provide legal or tax advice, and we strongly recommend consulting a qualified professional for personalised guidance tailored to your circumstances before making any financial decisions.
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
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+44 161 633 5009
