temptininnit

As our move draws nearer I'm starting to look at exchanging our money, it's all a bit bewildering. At the moment the exchange rate seem quite good, I understand that it is possible to fix a good rate with a deposit ready for when you get all your funds from the house sale etc.

Can anyone offer advice on this process or comment on the current rate and whether it's actually worth fixing?

TIA

Brisben

It isn't as complex as you may think/ It is possible to fix a good rate with a 10% deposit of the total funds you want to convert. This is called a forward buy. Where the agent buys at the rate you wish to achieve and holds the funds until you have the money available to pay for it. Ie waiting on house sale.

You should talk to a broker regarding the current rate to get a professional opinion as this is a very complex subjest and there are so many variable to consider. In my opinion the rate is very good at the moment at 2.52 ish. If I had the 10% deposit now I would deffo fix the rate.

Try looking on the web for Forex.

Hope this helps.

temptininnit

Thank you, is there any difference between Hi fx and UKforex? They seem pretty much the same, or would they offer different rates?

Brisben

I am sure they have some small differences, They will both offer much better rates than your high street bank that is for sure.

I am using Hi-FIX and have already set up an account with them.

They are both very highly recommended so the choice is yours buddy.

Call them both and they will send you information packs...

molloymj

Gday,

We have always found Tranzfers the best. Don't get stressed as you can't control the exchange rate you just have to bite the bullet and change the money when you can....everything happens for a reason.

Use this link! http://www.tranzfers.com/refer.asp?r=molloymj

OzTennis

The strength of the pound has been in the news (here in the UK) over the last few days. It has just about hit the psychological barrier of US$2 which hasn't been seen since 1992. It has been put down mainly to the unexpected 0.25% increase in interest rates last month (and because of the current state of the US economy and their 'lame duck' President committing more troops to Iraq). Masses of funds have been moved from US$ dollar investments to £stg (pushing up the price of stg). The link between stg and AUS$ is not as direct (stronger link between greenback and AUS$) but surely the current levels are going to hold for a while.

The interest rate outlook in UK and Australia is not clear cut. Further increases are not expected for a little while in the UK and previous talk of further rises in Australia seems to have dampened down a bit of late with lower inflation figures.

I agree that the current rate is pretty good (historically over the last 3 years) and I think it is going to remain around what is now also a psychological barrier of $2.50.

On the mechanics of transfer, we've used Commonwealth Bank in London and HIFX many times - very satisfied with both and as you say it's a very simple process that the helpful dealers at both these and other firms will guide one through.

OzTennis

mbike

If you've got a lump sum to change (>50,000ukp) it's worth calling them up directly. I phoned Ozforex today and they have closed the gap between the quoted rate and the interbank rate on my account- seems to be worth about 500 dollars extra straight away- not bad for the price of a call.

Mark

temptininnit

We have enough for the deposit, the balance will be after we find a buyer and complete on our house sale.

Jimclevs

Hi

If you opt for a forward contract you should be able to roll forward paying the balance to another agreed date with the exchange company you are using if, for example, your house sale is delayed etc. They will be happy, of course, as they have your deposit in their account for longer making money for themselves.

This is one question to ask each of the companies you may be thinking of using.

Regards

Jim

ps and, yes - the rate is currently very good - the mid-market rate as I type this is $2.54+ which means you should be able to negotiate a rate in excess of $2.51

mbike

I just sealed a deal with Ozforex at 2.5304. Jim on the phone there said he had already had 50 transactions this morning. Happy Australia Day, everyone

Mark

temptininnit

Should I be able to achieve this rate tomorrow on a sum of £140,000 ish?

mbike

Their rate has just dipped below 2.53 again (maybe because people are changing?) Make sure you call them before you exchange as 140k is what they call a large transaction and they will close the gap between the interbank rate and your rate in your favour. Personally I have had a target of 2.53 for 15 months now. When I woke up this morning it was there, so I changed. Compared 4 months ago we have made 11k and 15 months 18k.

Not certain what effect Australia Day bank holiday will have on trading but now seems a good time to change.

Also, bear in mind Ozforex is shut weekends so, if you do, you should aim to exchange before 7.00pm London-time

Mark

Buzzy--Bee

Any thoughts on which way the reat is going to go short term anyone?

It's quite hard holding out at 2.53+.



Buzzy

chrispy

Hi,
Just out of interest, supposing you pay the 10% and fix a buy date of three months in advance based on the expected sale of a house and it then falls through and you can't provide the other 90%? do they just then change the 10% and that is the end of the transaction? Also supposeing the rates improve, can you hold back the 90% and just get the 10% changed?

Cheers

Buzzy--Bee

Ring up Ozforex (www.ozforex.com) - they will talk you through this eventuality.



Buzzy