CURRENCY EXCHANGE TIPS
Don’t leave it until the last minute. Rates can fluctuate enormously so give yourself enough time to discuss your currency exchange needs and secure the best exchange rate.
Sign up for regular exchange rate updates as soon as you decide to buy a property so that you can keep track of how the markets are performing and get an idea of how far your budget will go.
Set a realistic budget based on the current market and stick to it.
Some sites will show the Interbank rate – the rate at which banks trade – but this is not the rate that you will receive.
A forward contract removes the risk of currency fluctuations by allowing you to fix an exchange rate at a specific value for a set period of time. Once you agree the forward contract exchange rate, you will know exactly how much you’ll pay for the property.
A stop-loss order allows you to protect your losses if the exchange rate works against you. You can set a limit of the minimum and maximum rate you require to make the transaction.
A regular payment plan is suitable for making regular transfers, such as paying an overseas mortgage or moving UK pension payments abroad. The exchange rate can be fixed for two years.