Whether purchasing second homes, luxury goods, or services such as education abroad, a dedicated foreign exchange dealer can help manage currency fluctuations and boost the efficiency of a transaction. In a recent Investec survey, half of all clients said personalised service was the leading benefit of our foreign exchange service.
“International payments are part of everyday life for the individuals we work with,” says Head of Private Client Foreign Exchange David Bimpson. “This means we have a refreshingly human approach, whether we need to set an exchange rate in advance, plan for regular overseas payments, or help tackle complicated payment systems. It all starts with a straightforward telephone call.”
Read on to find out more.
1) Buying a holiday home in foreign currency
When it comes to purchasing a second home overseas, the exchange rate can have a significant impact on the final cost of the property.
“Many of our clients who travel or work overseas have second homes. Once a client has an offer accepted, we can help them secure an exchange rate up to two years in advance using a Forward contract,” explains David. “This allows them to capitalise on potentially favourable movements in the exchange rate and protect their budget.”
Once purchased, the maintenance of these properties often generates expenses in the local currency too. “There may be managing agents, household bills and staff that require ongoing payment, so we make a long-term plan to make sure clients have the funds they need on account.”
The service can also help to reduce the administration that comes with managing multiple international payments. “Our role is to support their cashflow. We execute the payments they need so they can concentrate on enjoying their free time,” says David.
2) Purchasing luxury goods overseas
It’s very common for private clients to purchase luxury goods in a foreign currency. “Watches and cars are frequently bought in dollars, while high-end fashion typically requires Euros,” says David. “We have clients who want to purchase couture clothing for glamorous events, but we also have those who collect limited-edition watches or classic cars as a store of value,” he adds.
With high-value purchases, security is paramount. “Our clients appreciate that Investec is a global bank with robust procedures,” says David. “Our understanding of our client’s behaviours and physical oversight of a transfer can add protection.”
3) Paying university and school fees
In recent years, Investec has also seen an increase in requests to pay international education fees. “With many of our clients’ children attending American universities, the team is regularly asked to help navigate the Flywire payment system used by some overseas institutions. Some high-street banks can struggle to process the payment, but we’re familiar with the platform,” says David.
A client can plan a payment schedule alongside their other financial goals. “A client’s private banker can look at how to fund long-term costs through borrowing and savings plans, before we convert currency.”
Let’s talk about your personal and business foreign exchange needs
If you’re ready to have a conversation about how our foreign exchange services can help meet your needs, get in touch.
Important Information:
You can only book an FX Forward which is for an underlying personal or commercial spending purpose. You cannot book an FX Forward for investment or speculative purposes, for example in order to achieve a gain based on movements in exchange rates. Also, you cannot book an FX Forward on behalf of any other person. Additional terms and eligibility criteria apply for FX Forwards.
Investec residential mortgages are only available for residential properties in England or Wales and are primarily available to UK residents and subject to eligibility. Your home may be repossessed if you do not keep up repayments on your mortgage.
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