International Money Transfers

Ease stress by planning your overseas payments in 2021

While we've made it through 2020, the road ahead is still paved with uncertainty, whether in the form of the pandemic, vaccination efforts or the UK's new relationship with the EU. If you need to send money abroad, here's what to look out for and how to protect your finances from the often volatile currency markets.

What can affect exchange rates?

Foreign exchange rates fluctuate and, on recent form, you might well have to pay more if you plan to send money abroad in the future. Both economic and political factors can greatly influence the currency markets and push the rates one way or the other, a trend often felt by the pound throughout a turbulent 2020. How the economy copes with Brexit, plus the continuing ravages of Covid-19 and the battle to vaccinate populations are just some of the known factors that can influence exchange rates. And then there's the unknown ones...

How exchange rates can affect your payments

Exchange rate change every second increasing or decreasing the value of your money when it's sent abroad. This uncertainty makes it almost impossible to plan and could cause a shock when the time comes to make your payment.

For example, if you were buying a property in Europe worth €500,000, and the exchange rate was €1.16, then the cost of the property in British sterling is £431,034. However, if you were completing in three months’ time, and the exchange moved to €1.10, then the property would now cost £454,545. In other words, you could lose £23,510, through no fault of your own.

How to protect your payments from market movements

Fortunately, by working with a foreign exchange provider such as Mail Finance International Money Transfers, you can protect your payments from market movements and make the most of your money.

If you’re happy with the current exchange rate, whether you’re making a payment now or in the future, you can fix the rate for up to two years with a forward contract (this may require a deposit). Or, if your sights are set higher, you can set a target for your ideal exchange rate, which means that we’ll alert you if and when your rate is achieved so you can make your payment without missing out.

In addition, our team of dedicated foreign exchange managers is here to help you navigate the fast-moving currency markets. On top of this, you’ll enjoy great exchange rates and low transfer fees, saving you time and money on each and every payment. Speak to one of our specialists today to open an account or discuss how Mail Finance Money Transfers can assist with your international payment needs.