Are you thinking of taking out a mortgage in Spain? If so, you’ll probably be aware that the exchange rate can make a big difference to your cost. For instance, just this week the pound has hit 1.39 versus the euro, a full +19 cents than higher than at the start of 2014. Were you to transfer £250,000 to Spain for a mortgage, you’d hence receive +€47,500 more than 21 months ago!
With this in mind, how can you ensure you get the best possible exchange rate for your Spanish mortgage? Well, here are 5 top tips from Pure Fx to help you on your way. Enjoy the sun, sand and sangria of Spain!
1. Don’t blindly accept the exchange rate your bank offers you. This is because the high street banks don’t specialise in foreign exchange, meaning you’ll receive an exchange rate far worse than that available elsewhere. To be specific, were you to exchange currencies with a foreign currency specialist, you’d get an exchange rate up to 4% better than the bank, adding thousands to euro total!
2. When a good exchange rate becomes available, take it. By this I mean, don’t wait and see how high the exchange rate goes. This is because the foreign exchange market is volatile, and can quickly reverse, so that while it looked like the pound was rising versus the euro, it can quickly fall again. Hence, it’s better to avoid taking risks, and transfer your money to Spain while a good rate is available!
3. Seek advice from a professional currency dealer. A qualified currency dealer will be able to tell what’s currently affecting the exchange rate, and whether the pound is liable to strengthen. Moreover, they’ll also be able to answer any questions you have about transferring your money to Spain, and walk you through the process. Hence, you’ll be in safe hands when you contract your mortgage!
4. Use Google to keep an eye on the exchange rate. To find out how the exchange rate is doing, you don’t have to make any calls, you can just use Google. Enter “pound to euro” into the search engine, and it’ll tell you today’s rate. Hence, over time you’ll be able to see if the exchange rate is rising, whether it’s hit your target rate, and whether it’s a good time to transfer your money!
5. Don’t transfer your money to Spain at the last minute. This is because you’ll have to accept whatever exchange rate is available at that time, whether it’s good or bad! Instead, if you start to look at the exchange rate as far in advance as you can, you’ll give yourself a bigger window for a really good exchange rate to become available, which will of course add to your euro total!
With these tips in mind, getting the best exchange rate for your Spanish mortgage should be a cinch.
By Peter Lavelle