Since the UK voted to leave the European Union in June’s EU Referendum, many EU nationals have been considering repatriating back to the United Kingdom. Even expats living outside the EU are likely to be considering repatriating in light of the Brexit vote due to the value of the Pound plummeting.
Because you can now get more Pounds for your foreign currency than you could earlier in the year, selling an overseas property is more lucrative. Sterling’s value against the Euro, for example, has plummeted from around €1.31 to a low of €1.19 since the EU Referendum result while the EUR/GBP exchange rate has climbed from £0.76 to £0.86. Similarly, the Pound’s value against the US Dollar has dropped from $1.45 to around $1.31 while USD/GBP has rallied from £0.67 to £0.77.
Regardless of where you are, selling a property abroad and converting the earnings into Pounds in the height of Brexit uncertainty could see you end up with a tidy profit. For example, if you’d had €300,000 to transfer back to the UK before the referendum you would have achieved £228,000 but that same €300,000 would be worth £258,000 after the result, £30,000 more.
How to maximise the return on your currency transfer
There is another way to maximise the profit you get from transferring funds back to the UK from overseas – take a little time to look into the international money transfer provider you use.
While using your bank may seem like the simplest solution, banks rarely offer the most competitive exchange rates available and often charge a transfer fee for managing the transaction.
The result of this is that, you, the customer, could see your Pound-profit diminished somewhat.
If you want to make your money go further, consider using a professional money transfer or brokering company – a company that, unlike banks, specialises specifically in currency transfers. As banks offer a wide variety of services their attention is often split and they rarely have a range of currency experts on hand to support their customers. However, money transfer companies offer competitive services in a number of areas that can benefit customers in several ways.
Variety of transfer options
As well as doing away with transfer fees, and thus allowing the customer to keep more of their money, currency broking companies usually offer a wide variety of transfer options that can make the foreign exchange process far more convenient for the customer.
These include being able to make an immediate transfer with a ‘spot contract’, which allows the customer access to a highly competitive exchange rate on an on-the-spot transfer.
Other popular options include ‘forward contracts’ – particularly useful if you need to budget for a foreign property sale or purchase. With a forward contract customers are able to fix a rate for up to two years, meaning they’ll know exactly how much they’ll get for their transfer in advance while their funds are protected from adverse movements in the currency market.
Other possibilities include using a ‘limit order’ to target an exchange rate higher than the current market level or employing a ‘stop loss’ order to set a worst-case transfer rate. With both of these methods, your currency transfer is executed automatically as soon as the market moves to that level. You can even use them together in order to keep your transfer within a certain range.
Additionally, if you’ve got recurrent currency transfers to manage – paying mortgage payments or transferring a pension for example – you can automate and streamline your transfers with a Regular Overseas Payments (ROPs) plan. With a ROPs account transfers are conducted automatically on a data of your choosing at an excellent exchange rate and without transfer fees.
Is your money safe with a currency broker?
Managing your international money transfers with a currency broker is just as safe and secure as using your bank.
Some currency brokers assign their customers dedicated Account Managers to look after all their foreign exchange requirements – providing a constant point of contact and an industry expert they can turn to for support and guidance whenever it’s needed.
For additional peace of mind, pick a currency transfer provider that’s authorised by the Financial Conduct Authority (FCA), operates segregated client accounts and holds the highest credit rating.
When verifying a company’s credentials it’s also a good idea to check out online reviews and see what other customers have to say about the service they received.
The month since the UK voted to leave the EU may have caused panic in currency markets and triggered a Pound slump, but for those selling a foreign property and converting the funds into GBP, you really could get more for your money with the right support.