When purchasing your property abroad you will need to pay for it in the foreign currency of that country e.g. for Spain this will be in euros.
Your traditional high street bank may seem the obvious choice for where you change your savings, due to ease and tradition, but they are likely offer you the tourist rate on the exchange of your hard earned cash, as opposed to the Commercial Rate that a specialised foreign exchange company will offer.
By using a foreign exchange company the rates will be more favourable so you can get more for your pound.
Due to the volatility of the currency market exchange rates are constantly changing, so can vary from one day to the next (as shown in the graph below). However, there are various options available to help customers get a great rate.
Buy now, pay now. These are ideal for anyone who needs their currency straight away as the currency is purchased today at the current rate. However, if you have time to spare before your payments are due it may be wiser to consider a Forward Transaction.
Buy now, pay later. These allow you to secure a rate for up to 18 months in advance to protect yourself against any movements in the market. A small deposit holds the rate until the balance becomes due when the currency contract matures. This option not only protects against possible drops in the exchange rate but also gives you the security of the currency you need at a guaranteed cost, regardless of fluctuations in the market.
Allow you to place an order in the market for a desired exchange rate. This has the advantage of protecting you against negative exchange movements whilst still allowing you to gain from a positive movement. Your request is entered into the system and an automatic currency purchase is triggered once the market hits your specified rate. Using the options above clients can save thousands of pounds on their currency transfers - what better way to kick start your life abroad?
Once you have become the owner of your dream property, it is highly likely that you will need to send regular monthly payments from home whether for mortgage payments, maintenance expenditure or transferring pensions or salary. Using a reputable foreign exchange company can make this process hassle free and they are likely to offer you better terms than your high street bank. By setting up regular monthly direct debit payments you can benefit from extremely competitive rates without the monthly worry.
If you haven't had to deal with these sort of transactions before it can seem a little daunting, but Currencies Direct, the market leader in foreign exchange, can help give you an exciting and cost-effective start to your life abroad.