Do you plan to buy a property in Malta? If so, it may interest you to learn that the pound recently hit 1.2373 versus the euro, its highest since December 12th 2012.
What does this mean if you’re buying a property in Malta?
If you’re buying a property in Malta, what this means is that you’ll now receive a higher euro total. For instance, a £250,000 transfer to Malta would now be worth +€25,050 than March 12th 2013.
Why has the pound strengthened versus the euro?
Sterling has risen versus the euro, because the UK economy is doing very well. For example, sales in the UK’s shops jumped +6.9% in April compared to a year ago, the most since January 2012.
Will the pound continue to climb against the euro?
It might. This is because the Bank of England is forecast to become the first major central bank to raise interest rates since the financial crash, which will make the pound more attractive.
How can you get the best exchange rate when you buy a property in Malta?
1. Check the exchange rate as far in advance as possible. This is because it gives you a bigger window to seek guidance, and for a good exchange rate to become available.
2. Compare the exchange rate you’re offered. A currency dealer will offer you an exchange rate up to 4% better than your bank, which may add thousands to your euro total.
3. Don’t get greedy. If a good exchange rate becomes available, take it. This is because the foreign exchange market is volatile, and the exchange rate can very quickly fall.
4. Use a forward contact. This lets you freeze the exchange rate where it is without transferring your money, so that if the exchange rate falls later on, you’re protected.
5. Check that your currency dealer is authorised by the UK’s Financial Conduct Authority. This will ensure they adhere to all legal and regulatory requirements, so your money is safe.
About the author
Peter Lavelle is a currency dealer at foreign exchange broker Pure FX. To get free expert foreign exchange advice, call him on +44 (0) 1494 671800 or email [email protected]. He’ll be delighted to help.