Case study: Buying property abroad

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Since we launched, we’ve helped nearly 200,000 clients send their money around the world. One of the main challenges these clients have faced involve international transfers for property purchases. Here is just one example of how we helped a client secure their dream home and save thousands of pounds in the process.

The client

A UK resident looking to buy their family a dream holiday home in Spain.

The challenge

Having found their holiday home, the family wanted to take advantage of a six month high GBP/EUR exchange rate. They were able to do this for their deposit payment, however, the Spanish property buying process meant they wouldn’t have to transfer the remaining payment until further down the line. This raised concerns that any negative drops for GBP/EUR could increase the cost between paying the deposit and their final payment.

The solution

Their account manager proposed a Forward Contract. This type of foreign exchange contract allows you to secure a rate for up to two years. That means you can take advantage of a great rate even if you don’t need to make the international transfer straight away. The client accepted the proposal and their account manager locked in the rate.

This meant that when the pound dropped before the payment date, they were left unaffected and saved thousands of pounds. Plus, as the rate was secured for two years they were able to take advantage of it again when it came time to refurbish their property.