Property purchasers receiving non-competitive exchange rates from greedy banks.
Suspicions that banks are clawing in every penny they can are confirmed by statistics which indicate that British overseas property buyers were not given decent service by banks and other currency providers, such as bureaux de change offices, to the tune of hundreds of millions of pounds each year, by not being transparent enough with how their foreign exchange charges are calculated, according to estimates.
The chief culprits are banks, many of whom are not complying with UK Consumer Protection Regulations introduced in May 2008, which require companies to openly tell buyers how a price will be calculated and thinks the problem will grow as more and more British people buy overseas.
Banks tend not to give the most competitive currency rates and specialist currency providers can often save around 1% or more of the value of the transaction. Banks often wrap up these transactions in apparently commission free exchanges, but make their money back again by offering a worse rate of exchange.
One of the respected currency exchange companies said, “In some cases, we are managing to save clients literally thousands of pounds. It’s tragic to think that so many people still use the traditional banks to move currencies.”
Further investigation by the Office of fair Trading is likely, but until then anyone moving currencies abroad, whether it be smaller regular sums for mortgage repayments or larger sums for the sale or purchase of a property, should consider using a currency company.
“Although anyone buying a property today through Tenerife Property Shop will be advised to use a currency company and be recommended one that best suits their needs at the time” said Mary Spencer, a Director, “There are people transferring their purchase money receiving an exchange rate that could be much better and there are thousands of people who are still paying their mortgages every month and losing money in the transaction”.
If you are still using the banks for your foreign exchange, click here to start saving money now!