Euro Pounds Currency exchange and buying property overseas

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Buying property overseas

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If you have an overseas mortgage or simply need regular cash sent abroad, we can facilitate this process far more smoothly and cost effective than any bank.

Better exchange rates than the banks, based on the full amount transferred over time, rather than each relatively small amount.

An unbeatable transfer charge, more than half the cost of the bank or building society.

Less departments and paperwork to go through means there is far less margin for error, your money will reach its destination with ease, as fast as is possible.

Receiving your payment

You can send your funds to us through the following:

  • Direct Debit
  • Cheque
  • Bankers Draft
  • Cash
  • Online banking
  • Telegraphic Transfer (BACS or CHAPS)

 

Sending your payment

We can send your payment through the following:

  • Bankers Draft
  • Cash
  • Online banking
  • S.W.I.F.T.

 

To fully understand the options that are available to you, please feel free to contact one of our dedicated account managers who will help identify your needs and meet your requirements.

Reports suggest that in the last year there was an increase of 25% in Foreign Property purchases.
More people than ever before have been taking advantage of a strong pound and comparatively cheaper property prices abroad.
Unfortunately when buying a property abroad, you will have to pay in Foreign Currency. This means that all of a sudden you will need to become familiar with a very volatile exchange market.

Depending on the type of property you buy, your payment schedule will differ. If you are purchasing an already constructed property, it is likely that you will initially pay a deposit and then some weeks or months later, the balance on completion.
If you are purchasing a new property that is under construction, it is likely that you will pay an initial deposit and then regular stage payments until the property is completed.

The danger with these arrangements is that a volatile market can make payments unpredictable. It is unlikely that you would purchase a property in the UK without agreeing a definitive price first! – Why do it with a foreign property?
Protecting yourself against advance movements in the market is an option that we can offer. We can also make the price of the property cheaper for you! It is important that when negotiating the Foreign Exchange markets you are familiar with all the different tools and mechanisms that are available to you. Combining Forward contracts with stop-loss orders could prove to be very prudent. see contract types

In January 2003, €150,000 would have cost £97,400. By May 2003, the Euro had gained approximately 10% in value against Sterling. If you had agreed to buy a brand new property under construction in January with a stage payment to be made in May the differential in the exchange rate could have made it difficult for you to make your stage payment.

If you had fixed your exchange rate in January 2003 you could have saved hundreds if not thousands of pounds.
If however, you were buying a property in the US at the beginning of December 2003, $150,000 would have cost approximately £87,000 at a rate of 1.724. If you had agreed a forward contract in December 2003 by May 2004 you would have been very disappointed to see that the US Dollar weakened to 1.91 against Sterling. (A difference of approximately 9.75%).

It is clear from these examples that volatility can work for and against you so it is our objective to work diligently to assist you in making the correct decision.

Where can I obtain the best exchange rate?

You need to compare like for like the exchange rate you can obtain from your bank to what a broker can offer you.


Where do I find a reputable currency broker?

Ask the agent you are buying the property through to make a recommendation or carry out some research on the Internet.

Are there risks involved when buying currency?

There is clearly potential for your property to cost more than expected if the currency markets move against you. When buying in Europe you will be provided a price for the property in Euros. It is therefore important that you establish a relationship with a broker who is able to provide you with expert advice and the best financial tools to use for buying your currency.
 

How can I buy currency for a date in the future?

You can buy currency for a future date using a 'forward contract'. This effectively means you can take advantage of a good exchange rate from the market without making full financial commitment. The rate can be guaranteed with usually a 10% deposit. This is a great option if you want to fix your costs early on, so you know exactly how much the property will cost you. This eliminates your risk and market exposure.

What can a currency broker offer me that can not be provided by my bank?

First and foremost currency brokers offer better exchange rates and lower transfer charges. On top of that they offer a much more specialist and personal service with an understanding of the complex and stressful foreign property purchasing process.

Does it take longer to buy through a broker than a bank?

No. Generally as brokers are experienced working within the foreign property market they understand the importance of payments reaching their destination on time. Therefore as soon as funds reach a client account they are automatically sent by international transfer known as SWIFT. It can take as little as a few hours to deliver funds to an account depending on the destination country.

What is the difference between the inter bank rate and commercial rate?

Inter bank is the real-time market rate on all major currency pairs used by banks trading vast sums between one another. They are often displayed in financial sections of newspapers and on websites. Commercial rates are the wholesale rates provided to clients who are buying a large sum of currency for a business transaction, property purchase or emigration. These include a brokers spread or margin and are lower than the inter bank rate.

Is it important I obtain a commercial rate?

Yes, very important; it is always beneficial to look beyond your bank and get a preferable exchange rate by shopping around.
'It is unlikely that you would purchase a property in the UK without agreeing a definitive price first! - Why do it with a foreign property?'
 

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I hope this information assists you, but please note that it is accumulated from the views of various political, economic and currency analysts, and cannot be construed as financial advice.