The Pound hit a 19-month high against the Euro last week. Is it time to lock in good rates against the Euro and get your holiday travel money now or your mortgage if you are buying a property in the eurozone?
The Pound hit €1.22 during trading on Friday, a 19 month high exchange rate against the Euro.
If you are due to travel or go on holiday in Europe this summer or if you are buying a property in the eurozone for example, it may well be a good time to lock into the good exchange rate.
Whilst in the longer term most analysts believe that Sterling is likely to strengthen, concern is over what will happen in the shorter term. In particular the emergency Budget scheduled for 22 June is expected to see the Chancellor announce some severe and extensive public spending cuts. This could weaken the Pound and see the exchange rate against the Euro (and other major currencies) fall.
Holiday Travel Money
For your holiday money, consider a prepaid currency card. These are becoming ever more popular and a good way to get the best deal on your travel money. They are more secure than such as cash, easy to carry and use. A number of providers now offer them, including FairFX and CaxtonFX.
With a prepaid currency card your exchange rate is locked in at the time you add funds to your card – meaning you can do so now and take advantage of the strenghtened Pound. In contrast if you use such as a credit card, the exchange rate is the rate prevailing at the time of the transaction – plus invariably there are other charges such as a foreign exchange transaction fee.
Eurozone Property Purchase
If you are buying a property in the Eurozone with a mortgage and are looking to complete in the near future, you may want to consider buying at least some of your Euros now.
Specialist foreign exchange brokers can help you with this. Torfx for example deal directly with the currency markets, meaning they can offer highly competitive exchange rates on all major currencies, including the Euro. You can also fix your exchange rate for up to one year ahead. See the Torfx website for more details and if you like get a free no obligation quote.
Don’t forget once you have a property overseas you will no doubt need to make regular payments – for such as ground rent and maintenance fees. You’ll want to set these payments up so that you don’t need to worry about remembering them. Torfx for example have their ‘Regular Overseas Payment Scheme (ROPS) which is designed specifically to take the stress out of making regular overseas payments.