You will come into contact with numerous people during the home-buying process. Yet, in addition to an estate agent, attorney, accountant and other providers, it is equally important to retain the services of a foreign exchange specialist.
Working with a currency broker instead of your bank can give you a far more beneficial rate, without the inflated bank fees. Imagine you are sending Pounds to pay for a €500,000 property. The current exchange rate the bank will offer is around €1.15 (based on rates in May 2017). Add on a transfer fee of up to £25, and the amount in Pounds will be £434.807. Using a currency broker on that same day (at €1.1775 to the Pound) would give you £424,628. This is a saving of £10,179.
Another important thing to know is that working with a currency broker early in the property-bidding process, can help you avoid adverse currency fluctuations. In the past, rates were fairly simple to predict. In recent years, however, economic volatility has created fluctuations in the value of the pound and euro. Not paying attention could mean the bid you make today, could cost you more in your home currency later. A currency specialist can lock in a favourable rate with a Forward Contract.
Once the deed is signed and the keys are handed over, there are still many situations in which currency transfer will play a role in your payment process. Your child’s international school may ask for one full amount or spread annual tuition across three payments. Here, the currency specialist saves you money in the lump transfer, and can plan the best rates for the long-term commitment.
You will likely want to furnish your home, update your kitchen or buy a new car. Here too, you can transfer money out of your home account, exchange at a favourable rate, and pay directly to the retailer.
Most currency specialists have online trading portals. So, monthly expenses, such as homeowners’ fees, utility bills, and gardening and pool services, can also be paid by you at your convenience, and still allow for cost savings.
Your dream life awaits you on Mallorca. But, as long as you have a presence in your home currency, there will always be a need for money transfer services. Identify a personable and trustworthy specialist, ideally one that is regulated by the UK’s Financial Conduct Authority.
Photos: One Mallorca reference no: OM-1102.