Rising use of overseas funds in UK property purchases is increasing the need for brokers to address currency risk at an earlier stage.
Twenty7tec has released the latest episode of its ELEVATE podcast series, in partnership with Smart Currency Exchange, examining the growing influence of foreign exchange on mortgage transactions and the implications for advisers.
The episode features Sam Cane, senior campaign manager at Twenty7tec, alongside Kieren Horgan, business development manager at Smart Currency Exchange. The discussion explores how international money transfers are affecting affordability, client outcomes and the wider advice process.
One of the key insights shared is that around one in five mortgage cases now involves some form of foreign exchange. The episode also points to a potential additional income stream for advisers, with successful referrals to Smart Currency Exchange generating an average commission of £625 per case in 2025.
The shift reflects increasingly global client profiles, with borrowers more frequently using overseas savings, gifted deposits, international income or proceeds from property sales abroad to fund UK purchases.
However, the podcast highlights the risks associated with currency volatility. Ongoing geopolitical uncertainty and so-called “Black Swan” events continue to drive fluctuations in exchange rates, which can materially affect both affordability and transaction viability.
One example cited involved a client purchasing a £2 million UK property using US dollar funds. Exchange rate movements over several months resulted in a loss of more than £100,000 after foreign exchange considerations were not addressed early in the process.
The discussion emphasises the importance of identifying foreign exchange exposure at the outset of a case. Through its integration with Smart Currency Exchange, Twenty7tec allows advisers to refer clients where international transfers are involved, with the aim of supporting a more structured and informed advice journey.
The episode also suggests that incorporating specialist foreign exchange support can provide a competitive advantage. By strengthening due diligence around international funds and improving the customer experience, brokers may be better placed to differentiate themselves in a crowded market.
Cane said: “The message throughout the episode is clear. Advisers do not need to become foreign exchange specialists themselves, but they do need to recognise when currency risk exists and ensure clients have access to the right support early enough in the journey.
“As international transactions become increasingly common across the UK mortgage market, foreign exchange is no longer a niche consideration, but an important part of delivering stronger customer outcomes.”
