Assetz® News - Making the Most of Your Pound Abroad

Making the Most of Your Pound Abroad

15th April 2008 |

Assetz launches currency service to safeguard property investors

As the strength of the British Pound continues to waver against the euro, Assetz Finance, the UK and Overseas mortgage arm of the Assetz group, urges overseas property investors to act quickly and consider securing a competitive exchange rate to safe guard against future fluctuations.

In partnership with Hargreaves Lansdown Stockbrokers, Assetz Finance has launched a new commission and transfer fee free currency exchange service designed to protect investors in overseas property against the falling value of the pound, and any other adverse currency movements that might impact on their future cost management.

Foreign exchange risk management

With shifting exchange rates often leading to short-term fluctuations in prices, buyers purchasing a home overseas can now benefit significantly from being able to secure a fixed exchange rate from the outset – allowing them to manage their future costs with increased certainty. The Assetz Currency Service gives the client the facility to fix the exchange rate from the moment a property is chosen, providing buyers with the certainty of knowing exactly how much their future transactions will cost.

Katy Hepworth, Overseas Mortgage Manager for Assetz Finance, comments:

“The European Central Bank (ECB) has kept interest rates unchanged at 4% since June 2007, while the Bank of England has reduced UK interest rates by 0.5%, to 5% over the same time period, with future rate cuts imminent. As a result, the euro’s strength against the pound has surged.

“Fluctuating exchange rates can lead to buyers being hit with higher than expected costs if they are not paying the full price for their purchase upfront. Prices can rise by £1,000s in a month as a result of adverse exchange rate movements and this can come as a serious blow to a buyer’s calculations for their new property.

“This service is absolutely essential for our clients and ensures that Assetz Finance is able to provide a complete financial package for property purchases abroad, without extra cost to the purchaser.”

EXAMPLE
A property costing €200,000

On 25th January 2008 this would have cost £148,104 (€1.3504)
On 28th March 2008, the same property would have cost £158,440 (€1.2623) – over £10,000 more

Paul Dimambro, Head of Currency Service at Hargreaves Lansdown said:

“We have seen a 33% increase in the level of currency transactions since the beginning of the year, as clients are clearly fearful that the sterling/euro exchange rate will drop even further.

“It is at times like these that clients rely on our Currency Service not just as protection against currency movements but also because we provide up-to-date information about what is happening in the currency market.”

For full details of the Assetz Currency Service visit:

http://finance.assetz.co.uk/currency-exchange-new.htm