Foreign Exchange Firm Helps Brits Make the Most of their Savings

TorFX is helping foreign property buyers save money on their foreign exchange transactions, offering bank busting exchange rates and practical advice to help buyers avoid the risks of market movements.

(PRWEB) May 2, 2006 -- More Brits than ever are buying second homes abroad says the latest data from the Office of National Statistics. The value of foreign property owned by UK residents has grown from £7 billion to £23 billion in the last decade, and has doubled in the past five years alone. Spain and France are the most popular destinations, with over 70% of European investment. Close behind comes the USA, and then Portugal.

With the staggering growth of this market, it is not surprising that a host of companies are now competing to provide services to individuals looking to make the leap. Moving house has long been described as the "second most stressful event after bereavement". However, with the added complications involved in making a foreign property purchase, simply "moving" has been relegated to third place. Issues such as local regulation, language barriers and the inevitable differences in the buying process can be unnerving for British buyers who are often bewildered by the extra research and planning required.

One of the most complex aspects of the move, and potentially the most costly, has been the exchange of sterling into foreign currency. Buyers have previously been at the mercy of the high street banks when it came to fixing an exchange rate for their transaction. One company that is helping clients save themselves money and stress is TorFX. As an independent foreign exchange broker, TorFX is able to offer significant savings over the rates offered by the banks, often saving clients thousands of pounds. Expert dealers are able to offer practical support and advice, as well as providing regular updates on currency market movements, ensuring that clients optimise the timing of their transaction to gain the best exchange rate possible.

On a transaction of £200,000, the average saving by using TorFX is around £2,000.

TorFX also offer "forward" contracts, allowing clients to reserve their currency at a guaranteed exchange rate. Clients only need to pay 10% of the currency value initially, with the balance payable on the settlement date. This can be a valuable facility for property purchases, as the purchase price is usually agreed several months before the property is paid for. Forward contracts eliminate the risk of the exchange rate fluctuating during the buying process. When you consider that the Sterling/Euro rate fell by over 5% between June 2005 and July 2005, you can see why currency risk is an important consideration for anyone buying abroad. By agreeing to purchase a property priced in Euros in June and buying the currency to settle the deal in July, the exchange rate movements would have cost the buyer an extra 5%. On a property priced at €200,000 this amounts to a £7,000 cost increase.

By using TorFX to secure advantageous exchange rates, buyers of foreign property can fix their purchase price and ensure that they are not at the mercy of volatile markets.

About TorFX
http://www.torfx.com
Tel: 01736 752142

TorFX is a leading foreign exchange broker, offering ultra competitive exchange rates and risk management tools to foreign property buyers. TorFX is regulated by HM Revenue & Customs, and is also a member of the UK Money Transmitters Association.

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