EXCHANGE RATES NOW!

[Jan]

Hello, I'm about to buy a property using sterling - how do I go about getting the best exchange rate and, get your crystal balls out - which way is the £/Euro going to go?

[idun]

Tis the silly season apparently, not one soul on here knows which way the exchange rate will go, and if they say they do, do not believe them!!!

Plenty of FX companies about to use to exchange, check their rates, as a house purchase is a lot, call them up and ask.

[napoleon]

Agree! Nobody knows precisely which way the rates will go. There are well informed opinions about how to get the best rates. I have only recently discovered the excellent rates provided by CurrencyFair compared with my high street bank. You will certainly need to check what is being offered by several companies.

Alistair

[minnie]

The only thing I would say is that sterling is stronger against the euro than it has been for at least 7 or 8 years. Of course, as everyone says, anything could happen after tomorrow's referendum. My policy of this is that there's a danger of being too greedy and waiting too long....

Good luck

[mint]

[quote user="minnie"]The only thing I would say is that sterling is stronger against the euro than it has been for at least 7 or 8 years. Of course, as everyone says, anything could happen after tomorrow's referendum. My policy of this is that there's a danger of being too greedy and waiting too long....

Good luck[/quote]

minnie, I agree entirely with your comment.

I put a sum (largish) into my Currency Fair account as I had a budget in mind for my new kitchen.  Lo, and behold, as I waited to source the kitchen I wanted, the exchange rate got better and better.

Just as well as eventually the kitchen I settled on cost roughly twice the price of an Ikea one which was my original choice.

So, I left the money in CF and I changed chunks of it whenever I thought the rate was good and I would hit my budget.  In the end, after 4 or 5 exchanges, I hit my budget in euros.  Without hesitation, I changed all the rest of the money.

Now, I know the cost of a kitchen is nowhere near the cost of a house but I think the principle stands.  Set aside the money, have a rate in mind, change in chunks if you need to, keep the lot somewhere and then, at completion time, you have the money all ready to pay over.

As minnie says, no being too greedy and waiting but also no rushing to change unless you have a deadline.  Change different amounts to spread the risk and, when you have enough for your purchase, secure the funds so then you can rester tranquille[:)]

[Kong]

Currencyfair is the best for changing relatively small amounts (ie 5 figures or less as per minnie). But for house buying you should contact the bigger FX people. You won't get sensible quotes on line for house buying sums.

[mint]

When we bought our present house, I didn't know about CF then.

I think I used Moneycorp and Caxton.  Still changed in 3 lots rather than all at once to spread the risk of the rate moving significantly up or down.

Anyway, Kong, "small amounts" of 5 figures or less could be 99 000 each time and, after I don't know say 5 exchanges, you'd be able to buy a nice little pad, non?[;-)]

[AnOther]

Who knows.

The two best times to exchange currency are yesterday and tomorrow !

[Gardengirl]

Having just returned from France, I'm sitting here opening mail from the last few weeks while we've been away.

One letter that might interest you is from John Lewis; they say they'll give a better deal than banks; not really of interest to us, as we usually have sufficient from a pension paid directly into CA by the government, which is at an excellent rate, but we have used Caxton over a number of years and found them very good.

Anyway, in case you'd be interested in John Lewis arranging your money transfers:

johnlewis.com/internationalpayments

The blurb mentions that if the receiving bank charges for transactions, they will reimburse them, and exchange rates are checked every 6 seconds.

[andyh4]

Minnie wrote

The only thing I would say is that sterling is stronger against the euro than it has been for at least 7 or 8 years. Of course, as everyone says, anything could happen after tomorrow's referendum. My policy of this is that there's a danger of being too greedy and waiting too long....

Good luck

Unquote

Absolutely Minnie.

The only thing I would say about the Greek referendum is that there will be one of two outcomes (and it is too close to call just now):

1. The Greeks say "Yes". The EU offer is accepted, but is no longer on the table. The senior members of the Greek government resign. There is a period of instability while new offers and new negotiators are arranged and the Euro should slip in value due to the uncertainty.

2. The Greeks say "No". This creates chaos among the lenders, who argue whether to provide a new offer or not. The Greek banks remain closed with limited withdrawal facilities. There are debates over whether Greece should leave the Eurozone or maybe even the EU. The instability should cause the euro to slip in value due to the uncertainty.

In reality I think the markets have already factored in both scenarios - and probably a hundred more.

So on Monday, will the pound be stronger or weaker? If I knew, then I would not be wasting my time here and would be moving my assets accordingly.

[Rabbie]

The pound seems to be stronger at present. I don't think the euro will recover much until there is some sort of deal. Of course if I really knew the answer I would be rich