Foreign currency exchange
When purchasing a home overseas, you'll almost certainly be required to pay for it in the local currency. However, the conversion of your funds is one of the least considered aspects of buying a property. By using an independent currency firm rather than your bank, you could potentially save yourselves thousands of pounds.
If you're buying a property overseas for any reason – holiday home, retirement, or property investment, a specialist currency company will be able to guide you through a simple process which will help you save money - often beating the rates offered by high-street banks by up to 4%. There are two methods to consider when moving currency, and a good FX broker will advise you how and when to utilize them for the most benefit.
When buying property, you’ll typically need to make a deposit payment to secure the purchase of the property. At this stage, a spot contract would most likely be used, allowing you to move currency based on the current price – so effectively, "on the spot".
Where you have payments due months later (either for completion, or staged payments) you might want to use a forward contract to secure a rate at the time, for up to two years. This means you are protected from the risk that your property might end up costing more than you originally planned because of movements in the exchange rate.
Email firstname.lastname@example.org for more information about how to save money when buying your new home!