Many Brits who bought homes abroad ended up almost £2 billion out of pocket due to high exchange rates at the big banks, according to a currency changing specialist.

Foreign Currency Direct found that the 550,000 people who have second homes abroad could have lost as much as £1,830,840,000 on exchange rates from banks.

The difference in exchange rates offered by specialist currency providers and the high street banks means that those buying €100,000 worth of currency stand to save £2,774 through a specialist service.

This equates to around four per cent of the cost of the average home abroad, according to Foreign Currency Direct.

Peter Ellis, managing director of Foreign Currency Direct, said: "Buying a home abroad is a life changing event for most people. However, buyers must consider the impact of exchange rates on the cost of overseas property purchase.

"Most high street banks offer their customers uncompetitive exchange rates by default, meaning people pay more for their property."

"With the trend of rising net emigration and foreign property purchase, this will become an increasingly important issue. Currently, an enormous amount of money is needlessly 'Lost in Transaction'.

"By shopping around, and choosing a specialist currency provider, individuals can save money."