Insuring your overseas property and currency exchange Article Published: 10:57 10/10/2006 Article Classification: Tuscany Hills, Scansano
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Olive Tree can help you to insure the building and contents of your overseas property. As well as ensuring that your currency is exchanged at the best rates, commission free.

BENEFITS OF USING HIFX 

·         ZERO commission, ZERO transfer and receiving charges

·         Regular Payments Abroad service for pensions and mortgages

·         Protection against adverse currency market movements

·         Access to jargon-free expert analysis of developing trends and market sentiment

·         Faster payments, automated processing and enhanced security using SWIFT

·         Best rates of exchange  

Why is understanding about currency volatility so important?

At HIFX, they understand that buying or selling large amounts of currency can often be very daunting. It is important to understand that if you are buying abroad, you are exposing yourself to “currency risk”. Currency movements can make a big difference to the final amount you end up paying for your property because of the time it takes to complete the purchase and subsequently, this could cost you thousands of pounds.  

For example, if you had agreed to buy a property, priced at €200,000 on 1 September 2006 (when the GBP/EUR exchange rate was 1.488) it would have cost you £134,409. Had you neglected to fix the exchange rate at the time, that same property would have cost £136,333 by the 11 September 2006 (based on a rate of 1.4670), an increase of £1,924 or 1.43 % in just 1 week!

 'Spot' and 'Forward' currency contracts – Remove the risk. 

If you have all the money available to purchase your property abroad you may prefer to fix an exchange rate to secure your costs. You have a number of options. You can do a “spot” trade. This is where you buy all the currency now and your HIFX dealer will hold it on your behalf and transfer the funds abroad when you need them.  However, if you do not have all the funds available yet to buy currency on a Spot contract but you are worried that future exchange rates might increase your costs, you can still play it safe and buy a “forward” contract. To do this you only need to have access to 10% of the funds initially. It is simply a mechanism to “buy now, pay later” where you are no longer exposed to currency movements. 

Making Regular Payments Abroad?  

Once you have bought your property abroad, like many people, you may still need to buy and transfer money on a regular basis. Whether for mortgage payments, property running costs or living expenses, you can save time and money with HIFX’s Regular Payments Abroad (RPA) service. You can fix an exchange rate for up to 2 years, establish a direct debit with your UK bank and send the currency abroad for no charge. 

 HIFX - 'Best Foreign Exchange Rate Provider' - The Sunday Times, 2006 

Overseas Property Insurance*  

As an overseas property owner, or someone who is about to invest in a holiday home you will know that arranging suitable insurance cover is an essential part of protecting your investment. Many UK residents however, often choose a policy offered by a foreign insurer that offers limited protection, is written in a foreign language, and as a result is not suitable for the special requirements of overseas property ownership. HIFX Insurance Services provides tailored insurance policies designed to meet the specific needs of overseas property owners.

HIFX is the UK’s leading independent provider of foreign exchange services to private individuals and businesses around the globe.  Every year they help over 25,000 private individuals buy and sell currency for a variety of reasons including overseas property acquisition, emigration and regular payments abroad (for pensions, mortgages, salary payments, school fees etc.). You could potentially make huge savings by using a foreign currency specialist like HIFX who can offer you a better exchange rate and a more specialised service. 

For a quotation, call 0845 2570227 to speak to a member of our overseas property insurance team or +44 (0)1753 271500 if calling from outside of the UK and mention Olive Tree.

 * HIFX Insurance Services Ltd - Authorised and regulated by the Financial Services Authority