Currency exchange when buying a Rent To Buy property
Below is an interesting article from Foreign Currency Direct regarding the currency exchange aspects of buying a property with a Rent To Buy contract.
HOW FOREIGN CURRENCY DIRECT CAN HELP YOU WITH YOUR RENT TO BUY
When exchanging currencies, it is always best to use a currency exchange company, like Foreign Currency Direct, as there are financial savings, as well as a superior service compared to high street banks.
With all regulated financial companies, you must register as a client for a no-obligation account. This is a simple process and Foreign Currency Direct has a specialist onboarding team to assist you. Once registered you will be allocated a dedicated Account Manager who will go through all the options.
For “rent to buy” purchases, it starts off with an initial payment which would normally be conducted as a standard spot trade – when you need your currency transmitted quickly and at the current rate. After the initial payment has been made, until the final payment, you may need regular funds to cover your rent, living expenses, etc, and your Account Manager at Foreign Currency Direct will be able to help you work out what is the best way forward for your requirements.
Our Regular Payment Plan (RPP) service is free; there are no fees, we simply take a small margin on the conversion. And our Euro payments on the service are sent via the SEPA network to help avoid and foreign bank receiving charges. You can send funds as little or as often as you like, on any amount between £100 up to a maximum of £5,000 per month. Best of all, we process payments every single working day of the month.
At the end of the “rent to buy” period there may be a final amount to pay, this will depend on individual circumstances, and your Account Manager will assist you with that. You may decide to lock the exchange rate for this final payment up to a year in advance for peace of mind. For this option you could look at limit orders or a forward contract.
Moving forward, you may still be sending funds from the UK to Spain to cover living expenses, mortgage payments, one off purchases etc. and we will make sure that we give you all the options, so that the correct package for you is put in place.
Learn more about the benefits of transferring currency with Foreign Currency Direct by setting up a free, no-obligation account here www.currencies.co.uk