Currency matters: thinking about exchange rates when moving back to the UK

Thursday, August 07, 2014

Currency matters: thinking about exchange rates when moving back to the UK

You'll often hear us singing the praises of foreign exchange specialists, like our partner Smart Currency Exchange, who are able to help overseas property buyers ensure a smooth purchase process - and save money by getting the best possible rates when transferring funds into foreign bank accounts. (Download their useful free guide to saving money here).

Hopefully, by now we've been able to drum home the message that leaving it to your bank to organise your currency transfers could mean you lose out on big money savings - as unlike exchange specialists, banks aren't able to prepare in advance for currency fluctuations.

However, what we haven't mentioned until now is that these savings can work both ways, as people selling their properties and returning to the UK could also save money on their exchange. Selling a house overseas and moving back to the UK also requires exchanging foreign currency into pounds and transferring this to a UK bank account.

Smart Currency Exchange has over 30,000 active clients who have used their exchange service - the following case study showcases a couple who saved money by employing Smart to help secure them the best rates of exchange when moving back to UK.

Case study: Mr and Mrs Johnson saved over £20,000 when they moved back to the UK from Cyprus

When Mr and Mrs Johnson first contacted Smart Currency - wanting to transfer €425,750 (the amount from the sale of their Cypriot home plus their life savings) from Cyprus to the UK, their trader was able to offer them a better-than-bank exchange rate on selling Euros that would have directly saved the couple £14,477 on the day. However, the trader advised them that even though no one can be absolutely certain what the market will do at any time - it was likely that exchange rates might improve in a week or so, and advised the Johnsons that it might be worthwhile if they waited to see if this happened.

Fortunately for them, because they had signed up with Smart early on, the couple had sufficient time to be able to wait for any favourable rate fluctuations - and within three weeks the rate improved and they were able to get £5,740 more than if they had simply sold the Euros on the day first contacted Smart Currency Exchange. By choosing to seek the help of a foreign exchange specialist, Mr and Mrs Johnson were able to save an impressive £20,217.

Fluctuating exchange rates can have a dramatic effect on the cost of your dream home, or as the Johnsons illustrate - the sale of one too. As rates change on a minute-by-minute basis, so too will the price of your property - so it's important to bear this in mind when organising any international currency transfer.

Download this free guide: A Currency Specialist's Guide to Buying Overseas Property >>

Author

A Place In The Sun