There are two main charges when looking at buying property in Euros.
Most people are aware of the transfer fees but not so educated on the exchange rate costs.
Banks tend to charge a range of fees when transferring your Pounds to Euros.
A transfer fee is a standard fee that is charged per every transfer abroad.
Below I will show you what the main banks within the UK charge:
Santander charge £25.
NatWest charge £15 if the amount is under £5k or 0.3% if it is over £5k, with a maximum of £40.
Lloyds charge £9.50 and the receiver is charged £12.
Barclays charge £25 for a normal transfer or £40 for a priority transfer.
It is common for banks to also charge the recipient a fee, this might mean that you need to send more money to cover this fee!
An additional charge to look out for is a priority payment fee.
This is if you want your payment to go across faster.
If you make a mistake or want to change something involving your transfer then you will be charged for that too!
To avoid these fees, avoid using the banks.
Money transfer companies can do all the work for you and most of them do not charge fees!
The cost of the service provided is in the exchange rate that they offer you.
With larger amounts of money, the exchange rate is a very important factor as it could cost you thousands or save you thousands.
The better the exchange rate is, the more money you will save!
Exchange rates are never standard! Money transfer companies and banks will set their own rates.
The main banks in the UK have an exchange rate margin of 2 to 4%.
For example, if you are purchasing a property in Spain for €240,000, if the bank adds a 3% charge when you want to transfer your Pounds into
Euros then that would cost you £6,400!
Banks do not offer competitive rates.
A lot of people still do not realise that there are other options out there for transferring money internationally rather than using the bank!
Money transfer specialists can offer competitive rates and provide excellent service throughout the process.
Timing of the transfer is more unknown
There is more waiting around with property sales and purchases as you have to wait for the legal side of things to go through correctly.
The more time that you are waiting around for, the riskier it is as the rates could dramatically change.
To put it simply, the price of the property, when it is changed back to Pounds, is changing everyday as the rate is moving.
It is the same when you are looking at buying a property as changes in the rate can alter the price you will have to pay for the property.
Over the last few decades, the rates have moved significantly.
They can move drastically even over a matter of days, weeks or months.
Imagine agreeing to buy a property, then the rates move dramatically and it ends up costing thousands more!
Money transfer specialists will watch the rates for you so you don’t have to, if the rate moves in your favour, then they can notify you!
With money transfer specialists you can lock-in an exchange rate for up to 12 months! This is called a forward rate.
This will ensure the safety of your money.
Bear in mind that services like this are not available with online-only operators.
Obviously, when looking at purchasing or selling property the amount of money you will need to convert will be a large sum.
The bigger the amount of money, the better the exchange rate.
Furthermore, the better the exchange rate, the more money you save!
Most companies will offer you a better rate when transferring large amounts of money.
Make sure to use a company that is regulated!
When transferring large amounts of money, it is important to make sure that your money is safe.
Make sure that the company you use is regulated by the FCA.
The FCA is the Financial Conduct Authority.
If a company is regulated by the FCA then it means that they are required to keep your funds in a separate, safeguarded client account, away from the company’s funds.
You can check to see if a company is regulated by the FCA by checking the FCA register online.
There are many differences between banks and money transfer specialists.
Many people feel that their bank is the more familiar option as their money is already in their bank account.
However, banks do not offer competitive rates and they have added fees!
Banks are best for small, irregular payments.
Money transfer specialists offer competitive exchange rates and have lower costs. They specialise in large amounts of money.
They also offer a much more helpful service.
You need to watch out for daily limits set by companies.
Many banks have daily payment limits.
In the UK, the main banks have an online limit of £50,000 to £100,000 daily; there is no limit when using a branch however, this can be costly and time consuming!
Banks have created these limits as the UK does not have any limits in place.
Most money transfer companies do not have limits on the amount you transfer!
For transfers such as a property purchase, this can be very handy.
No, they are not the same.
Many money transfer companies are online-only.
This basically means that you have to do everything yourself.
Companies that are online-only are companies such as PayPal, TransferWise, CurrencyFair and Revolut.
These companies are better when it comes to small payments to friends or family.
With a property purchase you need to ensure that the company you use is secure, regulated and are able to transfer large amounts of money straight to a bank account.
You also need to make sure that they offer competitive exchange rates.
There are a lot of factors to consider when transferring money internationally.
Getting all the information right can be difficult.
IBAN numbers are used to identify foreign banks, and they can be very long and easy to get wrong.
Online-only platforms will leave you to sort all of this out yourself, this leaves a lot of room for mistakes especially if you are uneducated with money transfers.
Mistakes are not cheap either, they can cost you a lot of money.
Some money transfer specialists like ourselves at Regency FX, can check all the information over for you to ensure it is all correct before starting the transfer.
Many people like having someone to speak to when sending large sums on money internationally.
This gives people the reassurance that they need to ensure their money is safe.
Most money transfer companies will be in contact with you during the whole process so you know what is going on with your money without you having to check all the time.
Regency FX are a UK based independent currency broker, specialising in high volume transfers.
We pride ourselves on our premium level of customer service, you will be allocated your own personal account manager whom you will have direct access to.
All funds transferred through Regency FX are made using client segregated accounts in accordance with the FCA (Financial Conduct Authority) guidelines.
The important thing is the comparison, online rates shown on Google and other search engines are not always accurate for the consumer.
They can often refer to the rates that banks exchange at rather than what is available to you, the customer.
Even if you are just looking for property at this stage it is worth getting in touch to discuss your options.
We can monitor the market on your behalf enabling you to budget more effectively.
As a first-class currency transfer service, here at Regency FX we endeavour to get the best available rate regardless of how much you are transacting.
Get a quote and see how we stack up.
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