If you are planning to move to Spain or to purchase a property in Spain, in the not too distant future, you should seriously consider securing the best exchange rate you can, by signing up for a Forward Contract or Forward Buying Option.
The exchange rate for sterling to euros is currently at its highest for a long time. But how long will it last? Nobody can answer that question for you, however, you can secure the best exchange rate if you take action when the time is right.
Question: So what is the best way to secure the best exchange rate for your move to Spain or property purchase?
Answer: A Forward Contract or Forward Buying Option
A Forward Contract or Forward Buying Option is used to fix and guarantee an exchange rate now, for a purchase in the future, for up to one year ahead.
This sort of contract is used by many people who are buying an overseas property. A Forward Contract can be secured with a small deposit, usually 10% of the total of the currency you’re selling, followed by the balance of the remaining 90% on or before an agreed date.
The buying currency is then transferred by Foreign Currency Direct to your designated account at the pre-agreed rate. Please note that the pre-agreed rate is respected, no matter what happens to the exchange rates in the meantime.
Why are Forward Contracts or Forward Buying options a great idea when buying property in Spain?
When purchasing a property abroad, a small deposit will be payable to your solicitor, with a completion payment of the bulk of funds required some months later.
Exchange rates can fluctuate meanwhile, making the purchase price of your property in Sterling change constantly. To avoid the risk of a falling exchange rate increasing the cost of your completion payment, you can use a Forward Contract. This will ensure your costs are fixed and you can budget correctly.
You wouldn’t buy a property in your home country without knowing the cost, so why do it for your overseas purchase?
Please be advised that we are approached by many currency transfer companies, wanting us to promote their services. However, we have worked with our selected currency partner for several years now. We believe that they offer the best service and this is what we want for you, our readers and our customers.
To save money on your currency transfers, from any country, and for any further questions then contact us today!