Every year, thousands of Britons buy or sell properties overseas. Whether it’s the realisation of a long-held dream to own a place in the sun, or selling up abroad to move back to the United Kingdom, you will need to move large sums of money between different countries and currencies.
But while you might bag a bargain property or use your best negotiating skills to get a good sale price, you may not give much thought to what kind of deal you’ll get when you actually transfer money to pay for the property.
The reality of buying overseas property is that the price – in the local currency - is often agreed long in advance of completing the purchase. This potentially elongated process can highlight the dangers posed by the FX market when making international money transfers. Imagine you agreed to buy a €500,000 property in France in March this year when the £>€ rate was €1.40 – the sterling price at that time would have been £357k.
But what if you didn’t have to pay until the beginning of May, when the FX market was getting jittery about the prospect of a hung parliament?
By 2nd May, the exchange rate had moved to €1.35 and that same €500,000 property would now cost £370k – a £13k increase in a matter of weeks.
£13k that could have paid for renovations or a new pool! – this rate comparison example relates to data and events from 2015.
When buying overseas, most people use their banks. However, banks do not typically offer competitive exchange rates and may not provide the expert market guidance that could protect you from such adverse currency movements.
Fortunately, there is an alternative which could save you money – while making sure you receive a bespoke service that will help you every step of the way.
Exchange experts moneycorp, offer exchange rates which typically better those offered by the high street banks. And customers can also receive guidance to help them negotiate the fast-moving currency markets.
The rates offered by moneycorp are often up to 3-4pc better than those from a high street bank. If you are moving a large amount of money – as you would with a property deal – then that could make an enormous difference. The saving could be enough to pay for renovations at your new property or cover your legal fees.
As well as highly competitive exchange rates, moneycorp offers you a personal service you may not receive from a high street bank. Each client is assigned their own personal account manager. He or she will be able to provide you with guidance around the transfer process and help you negotiate the often volatile currency markets. Your personal account manager may discuss tools you can use to guard against negative exchange rate movements, such as a ‘forward contract’. A ‘forward contract’ can be used to secure an exchange rate for up to 2 years, so you can budget ahead with confidence.
The bespoke service and highly competitive exchange rates offered by moneycorp do not mean clients pay high transfer fees. While a bank may charge £20-40 every time you move money overseas, at moneycorp fees start at £4 for an online deal, rising to a maximum of just £10 over the phone.
For competitive exchange rates, low transfer fees, expert guidance and the special offer of your FIRST TRANSFER FREE call moneycorp on freephone 800 785 011 or visit www.moneycorp.com/algarve
