Sending money overseas in 2021? Three things to consider before you do

The coronavirus has had varying impacts on people’s lives—you might have considered emigrating or buying a holiday property before, and suddenly found your 2020 plans challenging to continue with. If you’re hoping to be able to spend time overseas for work, study, or leisure in 2021, we're discussing three things to consider before you do. 

 

For property: Prices could be higher, consider locking in a rate 

Despite the Covid pandemic, property prices have been increasing in some countries. It’s worth doing your research when hunting for a home, to make sure you’re getting a fair deal, and always double-check the rules of property ownership in your country of purchase to ensure you’re not taking on any additional debts against the property. When buying overseas, using a currency broker could be useful for locking-in an exchange rate for up to two years for your property purchase. There were some significant market shifts in 2020, so speaking to a currency specialist can help you minimise the effect of market fluctuations. 

While you may not have considered the significance a market shift could create, it’s worth thinking about as it can have a dramatic impact on the amount you pay for your currency. For instance, on the 19th February 2020, the interbank GBP/EUR exchange rate was in the region of 1.20. By the 19th March, the same currency pair sat at 1.06. Just to illustrate, had you made a £200,000 currency transfer with a rate of 1.20* you may have received in the region of, €240,000. Meanwhile, the same transfer a month later with a rate of 1.06 would only have seen you receive around €212,000, a difference of as much as €28,000. We can offer a Forward Contract to lock a rate in place for up to two years, so you can protect your funds from an adverse market shift. While rates move constantly and can fluctuate in both directions, which could result in the rate moving against you, a Forward Contract can help to give your transfer some certainty, so you'll know exactly how much currency you'll get for your money and precisely how much your new property will cost. 

For pensions and salaries: Make cost-effective regular transfers 

If you’re looking to make a series of regular payments for pensions and salaries, using a currency specialist can help to make them cost-effective. We can set up regular payments, and offer an award-winning online platform to give you more flexibility in your transfers. 

For one-off payments: Make informed decisions 

It might be that you need to make a one-off payment overseas, but it’s important to get a competitive rate to really maximise your currency transfer. We can help you make quick and simple international payments, whenever you need. You’ll be offered a tailored transfer designed around your needs and timescales—so whether you’re planning for a year ahead or you want to make a transfer right away, you’ll get a service designed around you. 

Global Reach is a winner of Feefo’s Platinum Trusted Service Award, an independent seal of excellence that recognises businesses for delivering exceptional experiences, as rated for by customers. 

If you need to make an overseas money transfer and want to discuss how to protect or make the most of your funds, contact our Dealers, on +44 (0)20 7989 0000. 

 

*Interbank rates used for illustrative purposes and aren't achievable for clients.