Help! Transferring monthly mortgage payments

[Storrsy]

Hello

I have just purchased a property in France and I am now down to the nitty gritty of sorting out monthly mortgage payment to my French bank account.

Is there a good way which people can recommend?  I don't want to end up paying huge fees every month!

Any help gratefully received - this is all rather new to me so I am feeling a bit in the deep end!

Many thanks

Anna

[Will]

The easy and reliable (in our experience) way is to set up a regular euro payment with your British bank. The one we use, with NatWest, doesn't cost much and gives a pretty good exchange rate. Some other banks are less attractive though.

Alternatively, if you want to avoid fees altogether and still get a decent exchange rate most of the currency exchange companies will do something similar, though they seem a bit less easy to operate. Here's an example: http://www.currencies.co.uk/personal/regular-payments.aspx

[La_Panthère_Rose]

Hi

If it's any help I do this regularly from my English bank account (Halifax) to my French bank account (Credit Agricole) via the online banking and it works very well and is very easy.

From the RIB (given to you by the french bank with all the details of your account) I set up online all the details of the transfer and then each month I choose how much i wish to transfer and with a couple of clicks it's done.

It usually arrives two to three working days later.

With the Halifax it costs £9.50 and then 2.7 Euros from the Credit Agricole.

Kev

[Bob T]

You could also do it through someone like HIFX for free.

[mint]

It's not exactly free, Bob.  They give you a slightly worse exchange rate so that this is in effect their fee for transferring your money.

[tom.daniel]

There will be 2 costs involved when sending money abroad monthly:

1)the charge ie £10 fomr the bank or 'free' from some brokers

2) The exchaneg rate. This is the hidden cost and how all brokers and bank make their money on foreign exchange. You should find that a broker is still cheaper as the chances are you bank will give you a worse rate than you broker but still charge you a fee as well

[Clarkkent]

Would I be right in thinking that your regular income is in the UK and that you are trying to service a loan from Credit Agricole?

If you had borrowed in sterling you would only have had to pay commission and transfer costs once and you would be able service your loan without any of the additional costs you now describe. Nor would you be subject to a fluctuating interest rate.

Borrow where your income is, it reduces uncertainty.

[mint]

To be fair, Clarkkent, some do advise to borrow where the asset (which the borrowing is for) is, so I can see where the confusion might have arisen?

[Clarkkent]

[quote user="sweet 17"]To be fair, Clarkkent, some do advise to borrow where the asset (which the borrowing is for) is, so I can see where the confusion might have arisen?[/quote]

Yes, I too have heard this advice - including once on the BBC's Moneybox phone in. But I still don't think that it is good advice - too much uncertainty.

Who would have predicted an exchange rate of one euro = 91 pence three years ago?

[AnOther]

Depending on if you or someone is there to actually draw it out of an ATM and pay it into the bank the good old Nationwide debit card option takes some beating [;-)]

[mary]

I transfer money each month from the Uk with Moneycorp. I have the same amount in sterling sent over in Euro's each Month as a 'regular payment 'transfer. The rate I get with them seems very good when I check it each time. Over the tourist rate each time. It costs me £4 with Moneycorp and 1.55E with Credit Agricole.

[Storrsy]

HI All

This is all very useful - many thanks indeed for your help and suggestions - makes things a lot clearer.

I just used Rational FX to transfer a house deposit amount over but I'm still on the look out for the best monthly payment option. I do have a Nationwide Flex account but unfortunately I won't be going to France every month.

[dragonrouge]

Some time ago I posed a similar question but not for mortgage purposes simply to fund the overheads on the house +day to day needs.

Have been a Nat West customer for over 40 years and then followed what Bill has said and every month it just goes out without any problem. Good rate and the charge is £10.

Yes I may be able to get better than £10 but also believe in relationships and NW look after other things for us so just tend to take an overall position in all of this.