Brits thinking of buying abroad advised to start saving
01 May 2003
Alliance and Leicester has released advice for Britons thinking of buying a house in the sun - open a euro savings account.
Alliance & Leicester International Limited suggests that Brits considering purchasing a sunny retreat via staged payments should open a euro savings account at the time of the initial agreement to enable them to have the property price available in cash to protect themselves against subsequent fluctuations in euro exchange rates.
The financial house's offshore banking arm points out that initial house deposits in Spain can be as high as 75 per cent but are most likely to be in the region of 35 - 50 per cent.
The company adds that buyers often fail to exchange the remainder of the balance into euros at the time of paying the deposit and put themselves at risk to fluctuations in currency exchange rates, resulting in the property costing more than budgeted at the time of completion.
By opening a euro savings account, it suggests, buyers can earn a good level of interest on their savings and avoid any possible deficits.
Alliance & Leicester International offers a Euro Savings Account as do many other high street and offshore banking companies.
Consumers are advised to be aware of changes in euro - sterling rates and to shop around before selecting an account.
Simon Hull, Managing Director at Alliance & Leicester International commented, 'By purchasing the necessary euros at the outset, buyers can avoid being hit by volatile changes in the exchange rate and ensure they are not faced with a shortfall in euros when the remaining balance needs to be paid.'