This currency update is brought to you by Smart Currency Exchange.
Many people are confused about their options when changing their pounds into currency for a property purchase, so here we explain the various options.
Things have gone a little quieter on the currency front in the past two weeks. The euro has gained in strength at both the pound and the US dollar’s expense, but the pound has remained reasonably strong against the US dollar. Against the euro the pound has only returned to the kind of rates we saw as normal between 2008 and 2011, and with property prices rising fast in Spain and the US there is little point in delaying a purchase waiting for the pound to improve.
With property prices rising fast in Spain and the US there is little point in delaying a purchase waiting for the pound to improve.
The great unknown is the Brexit negotiations. Any bad news will probably see the pound tumble, and to hear some of the press reports you would think that Britain’s Brexit negotiating team is comprised of the Chuckle Brothers and Basil Brush. But you do start to wonder if they aren’t overdoing the doom and gloom just a bit. It will be interesting to see how negotiations continue and how far the sides are really apart. The good news appears to be that EU citizens’ rights will be protected when living abroad, possibly including healthcare.
So for property purchasers it should be full steam ahead. Many people are confused about their options when changing their pounds into currency for a property purchase. We have a number of tools on offer when booking your transfer that could help protect your funds and minimise your risks. Which is the best choice for you?
If you need to make your transfer now, you can benefit from exchanging your currency at the live exchange rate at the time that you contact us. Booking this rate now means you are protected from further exchange rate fluctuations as, for example, the twists and turns of the Brexit negotiations send the pound up and down. You can discuss your options with your trader, and monitor the exchange rates beforehand.
A Forward Contract allows you to reserve a currency exchange rate today, yet not have to pay for it or send the money until an agreed date in the future.
This is the most common way of setting your exchange rate and is most suitable for those who are certain they will be buying a property within the next year, but are unsure of the exact date. For example, if you have paid the deposit on a property but completion won’t be for a month or two. In that time who knows what could happen to the exchange rate and you could be left with a much more expensive property. A Forward Contract allows you to reserve a currency exchange rate today, yet not have to pay for it or send the money until an agreed date in the future. This also allows you to plan your budget with price certainty, as you will know exactly what exchange rate you will receive on your future transfers.
Regular Payments Plan
If you need to send funds overseas on an ongoing basis, for example for a property renovation or an overseas mortgage, setting up a Regular Payments Plan not only saves you time and money on every transfer, but you can also lock in the exchange rate on these payments to ensure that you always know how much you are sending and receiving every time.
To talk through the best currency exchange tools in these extraordinary times for Britain’s place in the world, call Smart today on 020 3542 7829.
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