The Benefits of Using a Currency Specialist for Your Second Home Purchase, Mortgage Payments & Rental Fees

When purchasing a second home abroad and managing monthly mortgage payments in a different currency, it’s essential to consider the exchange rate to ensure your budget remains intact.  

Many people unfamiliar with international payments might default to using their bank for currency exchange. However, a currency specialist can provide significant advantages by helping you plan the best time to exchange funds and offering a cost-effective process, especially for the initial larger transactions and ongoing payments back and forth.  

How Currency Specialists Add Value  

While using your bank might feel secure and familiar, it may not always be the most cost-effective option. Banks often lack the expertise to help you plan your payments and may charge additional fees for transferring funds.  

Benefits of Using a Currency Specialist:  

Planning and Expert Guidance  

• With a significant portion of the private client currency market consisting of property buyers, currency specialists have extensive experience in this field. They support expats and second home buyers through each stage of their purchase and beyond.  

• A currency specialist will assess your situation, timeframe, and budget to help plan your payments and provide complete transparency over market behaviour.  

Competitive Exchange Rates  

Currency specialists, focusing solely on currency exchange, have access to a panel of liquidity providers, offering very competitive rates. This allows them to provide attractive rates to customers, saving money compared to banks.  

Ease and Speed  

Currency specialists are often more accessible than banks, whether by phone or online, and are supported by faster and more transparent processes.  

Choosing a company that offers phone assistance can be reassuring when you need to check bank details or seek guidance about a payment.  

Currency Tools  

Banks typically offer only one way to buy currency—a spot contract. Some high street banks don’t provide live rates, meaning you might miss out on favourable fluctuations during the day.  

Currency specialists offer various tools to help you plan ahead, mitigate risks, and maximize your budget. 

Here are a few products available to you when using a market specialist. 

Spot Contracts  

• A spot contract is the current market price for exchanging one currency for another for immediate delivery. This is ideal for taking advantage of favourable exchange rate swings.  

Forward Contracts  

• Forward contracts allow you to lock in a favourable exchange rate for a future date, up to two years ahead. This is beneficial for property buyers as it fixes your budget and removes the risk of fluctuating exchange rates. A 10% deposit is required to lock in the rate.  

Rate Tracking and Market Orders  

• If you have a flexible timeline or budget, you can set up a market order to track a desired exchange rate. When the rate is reached, your funds are automatically purchased. A stop limit order can prevent you from exceeding your budget if the rate falls below a certain point.  

Regular Payment Plans  

• Ideal for monthly mortgage repayments or receiving income from overseas, regular payment plans automate transfers and offer options to fix the exchange rate for added security.  

Regular and Repetitive Payments 

Using the tools provided by a market specialist, you can automate your ongoing payments for monthly mortgage payments and receival of rental fees. This makes your incomings and outgoings a lot easier to manage. You can even manage your exposure to up to two years by locking your ongoing payments in advance using a forward contract.  

In a nutshell, using a currency specialist can provide significant advantages, from better rates to expert guidance, making your second home purchase and ongoing mortgage payments smoother and more cost-effective .