Normally in April, you can expect changeable, squally weather but relatively stable sterling. However, the pound was far from steady in April 2021. So, when the pound moves unpredictably, how can you prepare for buying a property overseas?
Get a quote from us today by completing our simple form. We’ll take a look at your requirements and arrange to speak to you at a suitable time to offer the best possible solution for all of your upcoming currency transfers.
Where next for sterling?
Sterling has swung by 3% against the euro since the beginning of April. That means a €300,000 property has varied in price by £9,000, or a £2,000 pension income received abroad by around £70.
Where will the pound go next? See what the experts say in our brand-new Quarterly Forecast, which includes predictions of the leading banks’ financial analysts.
The truth is, no one can predict with any real confidence where exchange rates will go as this depends on the future of the pandemic, the global economy and much else. Nevertheless, the Quarterly Forecast makes for a fascinating read.
With the end of lockdown in sight and talk of international travel, you’re probably eager to get going with your plans to buy or move abroad!
One of the first things to consider is your currency. It’s wise to ensure that currency fluctuations, like the swings we saw in April, don’t affect the value of your property-buying budget.
However, it’s not every day that you exchange sufficient money to buy a house and some buyers might be nervous. So, we’ve outlined exactly how a currency trade works, step-by-step.
Smart has helped thousands of people prepare for a property purchase and it’s part of our service to help you through the process.
7 simple steps to make a large currency transaction
When you have found your ideal property, the mechanics of your currency transfer are simple. It can all be organised online or over the phone in a few minutes. Here is how:
1. A chat with you
To start, we’ll have a chat about your requirements and work out a transfer solution that is right for you.
2. Spot or forward?
You might be making the trade now and require what we call a “spot trade”. Or you might be committing to a purchase now but paying later. In that case, a “forward contract” may be safer.
3. How much is your money worth?
We will quote the exchange rate and how much your funds will be worth in the destination currency.
4. We purchase the currency
When you agree to the quote, we will purchase the currency on your behalf. At this point, the transaction is legally binding.
5. Choose your payment option
You then have several options for making payment. Most clients pay via internet banking, which goes straight into their dedicated client account. This option is free, instant and safe. You can also do a same-day bank transfer, although your bank (not us!) may make a charge of around £15 to £30 for this. Finally, some clients still like to send a cheque, and that’s fine too. It only costs the price of a stamp but will take up to five days.
6. Which account?
You tell us (by email, fax or post) which account you want your funds paid into.
7. We send the currency
We send the euros, dollars or any of 35 other currencies to your beneficiary.
And it’s all done! You can then either close your account or keep it open to trade in the future. It doesn’t cost anything to keep your account open.
Gain access to one of our dedicated currency traders and get expert guidance on the best way to manage your transfers. All guidance is provided for free, no payment details are needed and there is no obligation to use us. Register for an account online or call us on +44 20 7898 0541.