Are you considering buying a property on the Costa del Sol? 

Whether you're searching for a villa in Marbella or a cosy countryside home in Monda, the journey is sure to be an exciting experience. However, navigating the complexities of currency exchange can be daunting. That is where we come in, aided by our trusted currency partner, Lumon.

Our team do not just help you secure competitive exchange rates, but also guides you through local processes and regulations, allowing you to concentrate on finding your dream home.

If you are contemplating a move to Spain or purchasing property there, securing the best exchange rate is essential. This can result in substantial savings. One effective strategy to consider is a Forward Contract or Forward Buying Option.

Currently, the exchange rate from sterling to euros is advantageous, but who knows how long this will last? 

While it is impossible to predict future rates, taking decisive action at the right moment can help safeguard your finances.

What is the Best Way to Lock in a Great Exchange Rate?

The answer lies in a Forward Contract or Forward Buying Option. This type of agreement allows you to secure an exchange rate for a future transaction, covering up to a year in advance. Such contracts are particularly popular among those purchasing property abroad.

You can secure a Forward Contract with a modest deposit—typically around 10% of the currency you wish to exchange. The remaining 90% is payable on or before an agreed date. Once established, the currency is transferred to your designated account at the agreed rate, unaffected by subsequent market fluctuations.

To obtain even more competitive rates, do reach out to us.

Why Use Forward Contracts When Buying Property in Spain?

When purchasing property overseas, a small deposit is usually required by your solicitor shortly after your offer is accepted, with the full payment due several months later. In this interim period, exchange rates can fluctuate significantly, impacting the closing price you pay for your property in sterling.

By using a Forward Contract, you can avoid the anxiety of potential rate increases that could inflate your total payment, allowing you to budget confidently. However, keep in mind that if the exchange rate moves in your favour, you will not be able to take advantage of it, as you are locked into the agreed rate.

After all, you would not purchase property in your home country without first knowing the cost—so why treat your overseas purchase differently?

While we often receive enquiries from various currency transfer companies, we have partnered with a reputable currency provider, Lumon, for several years. Regulated by the Financial Conduct Authority, they have an excellent reputation for service and offer competitive rates. We are confident in their ability to provide you with a remarkable experience, and we want you to benefit from the same.

Key Tips for Choosing a Dependable Foreign Currency Provider

When purchasing foreign currency—particularly for a significant investment like property—it’s crucial to select the right provider. 

Here are some useful tips:

1. Compare Exchange Rates:

- Don't accept the first rate you find! Shop around, as even a small difference can impact your final amount.

- Be cautious of hidden fees that could diminish what you receive.

2. Understand Fees:

- Always ask about additional fees. Some providers may present appealing rates but then add substantial service charges. Make sure you know all costs involved.

3. Research the Provider:

- Take the time to read reviews and gather feedback about the company. A solid reputation can help you avoid future issues.

- opt for providers regulated by financial authorities for added peace of mind.

4. Value Good Customer Service:

- Responsive and friendly customer service is invaluable, particularly if you have questions. Check if they offer support in your preferred language and through multiple channels.

5. Consider Transaction Speed:

- Think about how quickly you need the currency—some providers are faster than others. Choose one that meets your requirements if timing is crucial.

6. Online and Mobile Availability:

- Look for providers that offer a secure, user-friendly online platform or app for managing your transactions.

7. Flexibility with Rates:

- If you anticipate rate fluctuations, ask if the provider allows you to lock in a rate for future transactions. Some even provide alerts for favourable rate movements.

8. Be Aware of Transaction Limits:

- Understand any minimum or maximum exchange limits, especially if you plan to transfer a large sum.

9. Payment Methods:

- Check what payment options they accept (bank transfers, credit cards, etc.) to ensure they meet your needs.

10. Evaluate Contract Options:

- Discover whether the provider offers various contract types, such as forward contracts or regular payment plans, which can be beneficial for long-term property expenses.

11. Verify Credentials:

- Ensure the provider is licensed and regulated to protect your money and comply with industry standards.

If you are interested in buying a property on the Costa del Sol, we are here to assist you every step of the way.

Selling a property on the Costa del Sol.

Securing the right exchange rate is vital for maximising your returns. Even minor fluctuations can significantly affect the final amount you receive after currency conversion.

Together with our partner Lumon, Mediterranean Home can help you lock in a favourable exchange rate to protect your earnings, especially in volatile markets. By securing a competitive rate, you can safeguard the value of your funds and ensure a seamless international property transaction.

Safe and Secure

As an experienced and highly regulated provider, safeguarding your hard-earned money and personal information is our top priority. Our services are backed by robust security measures, ensuring that transferring money with Lumon is not only simple but secure as well.

If you have any questions or wish to save on currency transfers from any country, please contact us today!

Our knowledgeable team are eager to assist you in making your move to southern Spain a smooth and enjoyable experience.

To get started, please fill out our contact form, which will request your name, email, and a brief description of your currency transfer needs. We will then reach out to arrange an initial consultation tailored to your requirements.