Exchanging currency from pound to euros

It sounds simple and easy when you are exchanging currency from pound to euro, but if you are not using proper precautions, you could lose out your valuable money by a poor exchange rate and lose as much as £10,000 per £100,000 exchanged.

The high street banks have dominated the currency exchange market since the 1960’s. They have been doing a very good business over the past four decades as people have been buying property abroad. These banks have earned their reputation far and beyond any other organizations.

Nowadays, building societies have been holding a more dominant role over the high street banks in the exchange market. As far as economics, these competitions have been making the market more competitive. Thinking from the currency point, they are beginning to lose money when the money is transferred abroad while purchasing property.

Here are some case studies to prove currency getting holding a stronger value from pounds to euros.

In the year 2008, there was a person from Southampton who wished to buy property in Almeria, Spain. Her transfer was for a villa at £325,000; a superb 5 bedroom villa with sea views. She got very scared when the bank gave her the exchange rate so she decided to look elsewhere. She found a currency broker’s website and was offered an exchange rate of US ¬1.39 / £1. After some negotiations, she was offered 1.41 / £1. This meant had she continued with the bank she would have realised ¬451,750 - however fortunately the broker service could manage ¬458,250; saving Jayne ¬6,500 (£4,600)

There is another case study where Margaret and her husband Roy were buying an apartment in Majorca in December last year. It was a three bedroom apartment in a top class complex with added facilities like swimming pool, bar, shops etc. The property in Majorca is expensive. She was quoted a price of £265,000 for the three bedroom apartment. Since they recently retired, they were looking for the best deal on their currency exchange and fits to their budget. Their bank quoted 1.31 / £1 but the broker was able to secure at deal at ¬1.33 / £1. Margaret and Roy were able to save 5,300 (£3,900) in this deal.

It is very important to know the current exchange rate when you are taking a financial decision outside your country.