The buying off plan process can be stressful at times and one of the major areas that we are often unsure about it is the transfer of sterling to Euros.
If you are buying off plan, the likelihood is that you will be required to send regular payments during the construction process. Once the property is built, you will still need to exchange currency for mortgage payments and maintenance expenditure.
Your money exchange requirements will be ongoing so you really must do this in the most economical way as possible.
Although, your familiar high street bank might seem the easiest and less hassle option, you will be offered a tourist rate as opposed to a much needed commercial rate when dealing with large quantities of money frequently. It is a good idea to use a specialised foreign currency exchange broker as the rates will be more favourable.
We know that exchange rates vary from day to day so foreign currency exchange brokers offer customers different options to ensure that they get a much better rate than had they used the more traditional bank method.
These include:
Spot transactions are for people who need their currency straight away as the currency is purchased at today’s current rate. If you are not in a hurry and there is time before the payment is due you may wish to consider another option.
Forward Transactions are for those who wish to secure a rate for up to 18 months in advance to protect themselves against the fluctuations in the market.
Limit orders allow you to place an order in the market for your own desired exchange rate. Once your request has been entered into the system, it automatically purchases your currency once the market hits your desired rate.
To check up-to-the-minute exchange rates use our currency converter at Eye on Worldwide.
If you would like to talk to someone about currency exchange then please visit our specific page for currency exchange in Spain.
Written by
Susan Pedalino