Many people are unaware or neglect the importance
that exchange rates have on the cost of their overseas
property and the currency risk that is associated
with an overseas purchase. Here are our top 5 facts
and recommendations that will save you money:
Use a recommended currency specialist
Banks rarely give competitive currency exchange rates
(see the table below for comparision rates between different
banks and our recommended specialist).
The dealer’s ability
to access up-to-the-second exchange rates and
contact you at the most opportune time means
that they should be able to significantly undercut
banks and other financial institutions that
quote daily rates. |
Avoid bank charges
Some banks charge commission, and almost always charge
between £25-45 for international transfer of your
funds abroad. With a specialist these charges are reduced
or completely removed.
Tell them what you want
The job of the currency specialist is to get you the
best exchange rate within your timeframe. If there is
a rate that you need to achieve, let your specialist
know, and they can then book it automatically or contact
you at your convenience
Remove currency risk
The ability to fix the exchange rate when the market
is favourable for some time in the future removes currency
risk. This can be done using a forward contract, but
there are other mechanisms that may suit your particular
circumstances which your specialist can recommend.
|
During Jan 03 and Mar 03 the Sterling to Euro exchange rate
dropped from 1.56 to 1.46. In real terms, a
property priced at €200,000 would have
increased from £128,205 to £136,986
over that time period. This is a difference
of £8,781. |
Avoid received costs
Some overseas banks may charge you to receive your foreign
exchange transfer. Consider transfering your funds into
your Notaire/Solicitor/Agent account. You may also negotiate
with your bank to reduce or remove these charges.
Comparison rates table
This table below compares exchange rates from Sterling
to Euro on the 20th April 2004 offered by various
banks and Currency Solutions. Please note that
some banks may also charge commission and telegraphic
transfer fees.
|
Amount |
Barclays |
Halifax |
HSBC |
Lloyds TSB |
Natwest |
Currency
Solutions |
Average
savings |
£10,000 |
1.4580 |
1.4538 |
1.4602 |
1.4588 |
1.4596 |
1.4944 |
£
363 |
£
50,000 |
1.4720 |
1.4786 |
1.4810 |
1.4805 |
1.4755 |
1.4960 |
£
924 |
£
100,000 |
1.4820 |
1.4812 |
1.4822 |
1.4864 |
1.4825 |
1.4982 |
£
1,534 |
£
250,000 |
1.4845 |
1.4866 |
1.4872 |
1.4868 |
1.4860 |
1.4990 |
£
3,195 |
Enquiry Form
As a result of extensive research and close collaboration
with Currency Solutions we are pleased to offer
preferential rates for all Blaney Homes '
clients and visitors. Please complete this simply enquiry
form and a currency specialist will contact you at your
convenience.
- Preferential exchange rates
- Simple and friendly service
- Individually assigned specialist
- Real-time market evaluation
- Express service (receive your funds overseas between
3-24hr)
- Protection against market volatility
- No commission
- No transfer fee (for amounts over £20,000)
- Total security of funds
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