If you commute to work, isn’t it bliss at this time of year? Empty trains, warm sunshine and a game of rounders after work – if we lived abroad, life could always be like this. Fortunately, most of you are further ahead with that plan, and, if you’re buying in the year ahead, we have some tips especially for you, before and after Brexit.
Buying in next few weeks
Congratulations, what an exciting time! But beware; we know from past experience that clients leaving their payments to the last minute risk running into trouble. Many European and US banks effectively close in August. Lawyers may also close, making it hard to get a confirmation of receipt of funds.
Action: If you’re due to complete on a purchase in August or early September, call me as soon as possible so we can lock in your rate (if you haven’t already done so) and ensure the payment process goes smoothly.
Buying in next few months
You can probably work out what the problem might this October and November. The potential for a no deal Brexit has weakened the pound for three months straight. The closer we get to 31 October the higher the potential of either no deal or an October general election, with potentially devastating effects on your buying budget. If you are holding onto pounds to make a property purchase overseas you will be very brave to gamble that on the outcome of Brexit. As Barney, our Senior Trader, said recently, clients who fixed their rates in April are now 5-6% better off.
Action: You need to fix your costs with a forward contract. Call us asap on 020 7898 0541 to discuss your options.
Buying later in 2020
Do you remember when “normal” for the pound was over $2.10 and €1.50? It’s all too possible for the pound to enter a long-lasting period of weakness. Even the most ardent fans of Brexit understand that the pound will probably fall. Indeed it was reported this week that the Prime Minister’s team is pleased to see the pound falling as it “shows business is taking Brexit seriously”. A forward contract last for up to a year, and we have other schemes and ways of helping clients with longer term plans.
Action: A call to discuss your plans will only take a few moments. Please make that call!
P.S. We are here all summer long. Just call us on 020 7898 0541. And if you’re in Spain or the Algarve, you can pop into our local offices. We don’t even stop for a siesta!