Britons missing out on £101million each year on international money transfers

May 28, 2010 – 8:22 pm

Poor bank rates and high charges for foreign exchange transactions mean
individuals need to be savvier when transferring money overseas. Research
by Moneycorp reveals that Brits are potentially losing over £101m a year
by not shopping around for the best deals when transferring money abroad.
Furthermore, uncompetitive exchange rates and high bank charges are costing individuals a lot of money, despite a concerted effort by most to reduce their outgoings on luxury and even staple items.

Britons missing out on cash when they transfer money to and from Tenerife

Britons missing out on cash when they transfer money to and from Tenerife

 

David Kerns, Head of Personal Clients at Moneycorp, comments: “While many individuals are visiting comparison websites more frequently, checking voucher code sites and consulting online consumer forums before
purchasing goods in order to save money, this mindset doesn’t seem to have extended to foreign exchange. As a result, individuals are missing out on a very large sum of money they could be saving, by transferring funds
overseas through a foreign exchange specialist rather than a bank. Not surprisingly, high street banks are cashing in as a result of this surprisingly apathetic approach.”

People buying or selling property overseas and people emigrating or repatriating will be particularly affected, though this issue will affect all Brits who are transferring money overseas. People who own additional properties abroad and make regular mortgage and/or utilities payments will also be badly affected, as every transfer is open to individual transfer charges, in addition to exchange rates.

Data from the UK’s number one property website, Rightmove Overseas, reveals that the average house price in the Costa del Sol in Spain is currently €369,860.68. With a deposit of 10% , using a high street bank rather than Moneycorp would cost an individual, on average, an extra  £558 on their deposit alone.

An individual who wants to transfer a lump sum of £100,000 to an account in Europe would lose out on an average of 1,690 by using their bank for the transfer into euros.

David Kerns concludes: “Despite the UK coming out of recession recently, individuals shouldn’t be lining the pockets of their bank managers and it’s in their best interest to maximise their investments. Prior to making any overseas payments, we always advocate that people shop around to get the best rates possible.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , , | Comments (0)

Latest interest rates and mortgage news from Spain and the Islands

January 2, 2010 – 12:21 pm

The latest news from Spain and Tenerife's Euribor and mortgage situation

The latest news from Spain and Tenerife's Euribor and mortgage situation

 Euribor (12 months), the interest rate normally used to calculate mortgage payments in Spain, fell 1 % in November to a new record low of 1.231%. - Euribor has now fallen for 14 consecutive months, and is 72% lower than it was a year ago. - As a consequence of the latest reduction in Euribor, repayments on a typical annually-resetting mortgage (140,000 Euros, 25 years, Euribor +0.5%) will fall by around 240 Euros a month, or 2,800 Euros a year.  Economic analysts expect Euribor to stay around current low levels in the months to come. Both Jean Claude Trichet, President of the ECB and Miguel Ángel Fernández Ordóñez, Governor of the Bank of Spain, have said that current base rates are at the “appropriate level”.

 The volume of new residential mortgages signed in September was 62,411, down 4.2% compared to the same month last year. In value terms new residential mortgages were down 16% to 7.3 billion Euros.  The good news is the decline in new mortgage lending has been bottoming out in the last few months. It fell 31% in June, 19% in July, 7% in August, and 4.% in September. If the trend continues new mortgage lending will soon be growing again year-on-year in volume terms. That will give some support to the housing market and if you have a good relationship with your estate agent, they will be able to point you in the right direction, particularly in Tenerife for the best deals available.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , | Comments (0)

Sterling sellers can sell cheaper and still end up with the same money!

November 7, 2009 – 12:26 pm

A drop in sale price yet still the same Sterling to take back to the UK thanks to the exchange rate!

A drop in sale price yet still the same amount of sterling to take back to the UK thanks to the exchange rate!

The Spanish see that the property market has been abandoned by many UK buyers due to the poor strength of the pound. However, sterling sellers can sell at 20% below what the property was marketed at a year ago and still end up with the same amount of sterling to take back the UK with them.
Also,  the stock of B-money, which  comes out at this time for cash purchases will also support the economy for sometime, although it is foreseen that the recession will be sufficiently long in Spain and Tenerife as to draw out most of this ‘resource’. Maybe this is the Bank of Spain’s cunning plan to remove the alternative economy. Unfortunately, the raising of taxes may just encourage it even more.

By Angela | Posted in Uncategorized | Tagged , , , , , , , , , , | Comments (0)

Bank repossessions in Spain and Tenerife

August 22, 2009 – 9:39 pm

Bank repossessions provide great bargains for those with cash in Tenerife

Bank repossessions provide great bargains for those with cash in Tenerife

There was an interesting  article this week in the Spanish daily ‘El Mundo’ about bank repossessions in Spain, and what the 10 biggest lenders are offering investors. It  pointed that Spain’s banks and savings banks – known as cajas – are now the country’s biggest real estate companies. “Nobody knows how many properties they own, not even the banks themselves,” one expert told El Mundo. Their stock of repossessions is growing fast, and is expected to keep on doing so. All thanks to foolish lending in the past.

Banks aren’t, or shouldn’t be, in the property business, so this is a big headache for them. To liquidate their growing stock of property banks start by classifying property as ‘A’ or ‘B’.

‘A’ is new build from developers who can’t repay their loans, good quality, in good condition, and easier to selld, in theory at least. This is reported to make up 70% of the stock the banks now hold. Banks are using their own property divisions – recently set up in most cases - and branch networks to sell this ‘A’ property, offering discounts and preferential financing terms.

‘B’ is made up of repossessions from home owners who can’t pay the mortgage. There are forecast to be 74,000 foreclosures this year, and banks already have 9 billion Euros of bad debts from private owners on books.

Once again if you have cash available then you can bag  great property bargains  in Spain and Tenerife.

 

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By Angela | Posted in Economy, General, Inspirational, Miscellaneous Articles, Property, Tenerife, Uncategorized | Tagged , , , , , , , , , , , , , , , , , | Comments (0)

European property prices to improve?

August 14, 2009 – 2:51 pm

European property prices set to improve?

European property prices set to improve?

Property prices across Europe are expected to fall at a slower rate as the economy starts to level out, according to a report released by Invista Real Estate Investment Management. Conditions for the economy in the eurozone during the first half of this year were the worst since it was formed, although signs are that things are starting to improve.

The European Central Bank reports that more European banks have increased their lending, while the cost of borrowing has fallen sharply. The report says that improving property yields could increase the long-term attractiveness of  investing in property.

Tim Francis, director, Continental European strategy and research at Invista, says: “With improved visibility on bottom-of-the-cycle valuations, we are in a better position to judge market pricing against fair value. This will assist in identifying attractive investment opportunities across these markets, some of which are experiencing distressed selling.”  We expect deal flow to improve during H2 2009 as the other mature continental European markets including Spain and Tenerife catch up.

By Angela | Posted in Economy, General, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , , , | Comments (0)

Exchange rates favour some ex- pats

March 20, 2009 – 10:41 am

Exchange rates may favour ex pats

Exchange rates may favour ex pats

With increasing numbers of ex-pats taking advantage of the weak pound to move money or themselves back to the UK, obtaining the best exchange rate on exchanging to sterling from a foreign currency is something more and more people are asking about…

Firstly, foreign banks are something of an unknown quantity. Sometimes they offer good exchange rates but load in a hidden commission, or excessive charges for the money transfer to the UK.

In most cases, sellers of overseas property will be best off bringing their Euros or Dollars back to the UK and carrying out the exchange here.

Not only will this eliminate any communication problems, but it returns control of the transaction to the individual, rather than being at the behest of an overseas bank.

Shopping around between different banks and currency companies should then yield the best rate on the actual transaction.

Register with a couple of experienced brokers and see what rates are on offer. A reputable company will also be able to tell you what is happening on the markets to help you make an educated decision on the best moment to sell.

While the Pound is so weak, it is also worth considering fixing your exchange rate in advance. For example, if you are selling a property in the Eurozone, once you have exchanged contracts you can secure an exchange rate for your completion.

As generally the Pound is expected to get stronger over the coming months, this could mean your Euros are sold at fantastic rates before you even have them in your bank account.

Again, make sure all the options are explained to you - it could literally make a difference of thousands of pounds on your property sale.

Robin Haynes, Managing Director at Currency Index, said, “We are seeing more and more enquiries where clients are selling their overseas property and repatriating funds to the UK.

“This can be a tricky area for people to negotiate, so it’s vital they contact an experienced currency broker to make sure they don’t lose out due to high charges or poor exchange rates,” added Mr Haynes.

By Angela | Posted in Economy, General, Miscellaneous Articles, Property, Tenerife | Tagged , , , , , , , , , , , | Comments (0)

Buying Overseas? Ensure you obtain the best rate for your money.

March 7, 2009 – 12:32 pm

Make the most of your money when changing currencies

Make the most of your money when changing currencies

As the financial turmoil around the world continues, it is more important than ever to make sure you get the best exchange rate when buying overseas. There are two ways to achieve this: timing your purchase; and getting the best deal on the day.

Timing your purchase

If you are buying overseas, you will usually have a window of a couple of months before a completion payment is due - or a longer period to consider if you are buying off-plan and sending stage payments over the course of a build.

Whatever currency you need, the exchange rate will fluctuate over this period of time - so how do you know what the sterling cost is going to be? When is the best time to buy your currency?

An experienced currency dealer like Moneycorp will be able to tell you what’s happening in the market in simple English. If you need to send money to Tenerife, for example, which way is the Euro heading and why?

For these money transfers in Euros, when is the next announcement regarding European interest rates and how might it affect the exchange rate?

While there is no crystal ball and nobody can see into the future, it can pay to have an idea of what is moving the markets. This is how your currency broker can help you to make an educated decision as to when the time is right for you.

Furthermore, if exchange rates are good (or you’re worried about them getting any worse), you can also lock into a “Forward Contract” to guarantee your rate for up to two years in advance.

The beauty of buying currency in this way is that you have a definite sterling equivalent for a future currency requirement, but you only need about 10 per cent of your Pounds available to secure the rate. The balance is due when the money needs to be sent.

Currency companies watch rates all the time, so if you have a target budget in mind, they can let you know if the market moves in your favour. All in all, you are likely to end up more in control of your finances and with a better deal than just by buying your currency at the last minute when it is required.

Getting the best deal

When you decide to make a currency purchase, it’s not usually your high street bank that will get you the best rate. An independent broker such as Moneycorp will save you up to four per cent compared to a bank’s exchange rate - or £6,000 on a £150,000 purchase!

Currency brokers are registered with HMRC as money service businesses, and as they don’t use credit or speculate on the markets, the system is incredibly safe.

Because currency companies deal only in foreign exchange, you should also expect a first class personal service and your own dedicated dealer to guide you through the process. It is also less confusing to speak to an experienced broker, rather than the call centre environments presented these days by the banks.

Good currency brokers won’t charge you any commission and should have minimal or zero transfer charges - so you can save money right across the board. You can find more information on this and property related matters on the Tenerife Property Guide site.

By Angela | Posted in Economy, General, Miscellaneous Articles, Property, Tenerife | Tagged , , , , , , , , , , , , , | Comments (0)

Britons escaping to Tenerife

January 16, 2009 – 4:58 pm

Las Americas beach

Las Americas beach

A new survey from Sainsbury’s Bank reveals that 1.41 million British people are planning to take a break from the UK to escape the dismal weather and slowing economy…

The research also discovered that 4.79 million Britons will enjoy an extended holiday from the country over the next 12 months, spending more than one month away from home.

According to the survey, visiting family and friends is the most common reason for people to travel overseas, with 38 per cent citing this as their motivation, while 30per cent said they wanted to get away from the British weather.

Older UK residents were found to be the most likely to head abroad for a long period, with 1.72 million people in the over-55 age group revealing plans to spend at least 30 days in another country.

The findings suggest that many retirees may be planning to spend some time at their overseas property, with countries such as France, Spain and Turkey still popular with the retiree market and the Canary Islands having good winter sunshine is always a good bet for holiday makers and second home owners alike.

Last month, property expert George Glen said that Spain is an attractive location for retired homeowners due to the high quality of its healthcare services.

By Angela | Posted in Economy, General, Holiday, Property, Tenerife | Tagged , , , , , , , , , , | Comments (0)