Halifax provides Euro protection

Forward contracts are not a prediction of where the exchange rate will be in future months, but a way of giving peace of mind now, by confirming the rate that will be available on a certain date in the future. It is an ideal service for those individuals who have to meet stage payments and are concerned about the likely exchange rate on future dates.

At the start of 2003, £1 equalled €1.516. Since then, the value of the British pound has declined against the euro, making property purchase for people buying abroad, in real terms, more expensive.

For those buying a new property abroad, this is an important issue, explained Ian Smith, head of European operations for Halifax: “As more and more British people look to buy property overseas, particularly in Spain, there is an ever-increasing interest in euro exchange rates. Most Spanish developers require an initial deposit and three further instalments, with the last being payable on completion of the property, which could be as long as 12 to 18 months away. We believe our new service will allow customers to more accurately predict their building costs, thereby saving them money.”

For Halifax and Bank of Scotland current account customers there is also the added benefit of being able to transfer funds from the UK to Banco Halifax Hispania, free of charge. The amount of telegraphic fees depend on the amount being transferred, but can often be as high as £49 per transaction.