Mitigating Risk: Why Andamara partners with Smart Currency Exchange for seamless property purchase

Monika
Nov 15
3 min read

At Andamara Partners, our commitment is to provide a 360° secure pathway for our clients relocating, investing, and buying property in Almería and Southern Spain. A crucial, yet often overlooked, element of this process is managing international currency transfers.

That’s why we partnered with Smart Currency Exchange, a company we trust for their extensive experience with foreign buyers, honesty, trust, and proven results in navigating volatile markets. Their service ensures that the financial stability our clients achieve through savvy property selection is not undermined by unpredictable exchange rate fluctuations.

The Current Market: Why Locking in Rates is Essential

Recent currency movements highlight the immediate need for protection against sudden shifts, especially when dealing with significant property down payments and closing costs (which typically range from 10% to 12%).

The past week saw only tepid movement, but we are now entering a period of high-level data releases for the UK economy:

Bank of England (BoE) Decisions: Last week, the BoE narrowly voted to keep interest rates at 4% (a majority of five to four). The BoE explicitly stated that more evidence was needed that inflation is coming down before a reduction could be priced in. This uncertainty keeps the market volatile.
UK Fiscal Warning: Following the Chancellor Rachel Reeves' clear warning that tax rises are coming in the Budget (now just over two weeks away), speculation regarding the political blowback is high, suggesting a potentially "febrile fortnight ahead".
Upcoming Data Risks: The pound is highly susceptible to economic news, with key data releases this week on unemployment and earnings (with analysts expecting unemployment, already the highest since the pandemic, to worsen) and GDP.

🛡️ Smart Currency Exchange: Protecting International Budgets

Smart Currency Exchange is authorized by the Financial Conduct Authority (FCA) and serves tens of thousands of satisfied clients, offering customized solutions for global property purchases.

They support clients transferring any amount (small or large), whether it's £250 or £500,000, and specialize in buying and selling currency on behalf of clients from various countries and currencies.

Core Transfer Options to Secure Your Funds:

Forward Contract (Securing the Rate Now for Future Transfers): This is the ideal solution if you are buying a property overseas and need to protect your budget.
- It allows you to secure the exchange rate up to 12 months in advance.
- To secure the rate, you only pay a 5% to 10% deposit within two days of booking.
- This mitigates the real threat of market volatility, which could result in losses of thousands of pounds on a large international payment.
Spot Contract (Immediate Transfer): If you need to make a single payment today or within the next 48 hours, a Spot Contract is used.
Limit Order (Targeting a Specific Rate): You can discuss an achievable, beneficial rate with your Personal Trader. Once the market hits that pre-determined rate, Smart will buy the currency for you.
Regular Payments Plan: Ideal for making regular currency transfers, such as for overseas mortgages or sending UK pensions abroad, offering locked-in rates and removing the risk of missed payments.

Why Choose Smart Currency?

Personalized Service: Each client is assigned a dedicated Personal Trader.
No Commission: Traders are not paid on commission, ensuring unbiased advice.
Free Transfers: Transfers over £3,000 are free of any charges, commissions, and fees.
Speed: They offer same-day transfers for major currencies like the Euro and US Dollar. They can transfer funds directly to your solicitor.