The latest RBS Bank Interest & Exchange Rate Forecast report highlights the continuing fall of Sterling against the Euro, a problem effecting all sterling denominated purchasers.

More optimistically however they forecast that towards the middle to end of 2008 the economic conditions will have change somewhat allowing for Euro interest rates to fall and Sterling to regain some ground against the European Currency. This coupled with lower mortgage costs as interest rates fall should provide a positive environment for UK buyers in Mallorca at a time when they rather than sellers will hold the upper hand.

The key here is to "buy time". Now is an excellent time to negotiate hard and look out for well priced property and the ideal would be to tie up a purchase, with a private contract, but negotiate a delayed completion allowing for Sterling to appreciate against the Euro before the main money transfer and conversion is required later in the year.

 For further advice regarding any of the above please contact David Novi.