Brits leave overseas payments to chance

25th September 2009

Almost one in four Brits make international payments, yet only one in six of them proactively look to get the best deal

Nearly a quarter (23.75%) of Brits make overseas payments on a regular basis; but, rather worryingly, they do not conduct research to get the best deal. A recent survey commissioned by Moneycorp highlights that, on average, people in the UK transfer £593 overseas every six months – but only one in six (17.2%) proactively search for currency market information to help them get the best deal.

Almost half (46%) of respondents looking to move money overseas turn to the Internet for the latest information and 14.5% would normally consult their bank. More people (9.5%) choose to rely on the TV for latest currency information, rather than speak to a currency specialist to discuss their options (6.7%). This means Brits stand to lose out on thousands of pounds when transferring large sums of money overseas – to cover a property purchase, for example. People making smaller, regular transfers (such as mortgage payments) could also lose out on hundreds of pounds every year.

Favourable exchange rates

Michael Gregory, who moved his family to Perth saved $80,000 (AUD) by using Moneycorp to lock into favourable exchange rates: “I probably made the biggest transaction I’ll ever do in my life. People need to understand the repercussions of foreign exchange. Emigration is an expensive process – you’ve got to put some thought into any costs you can avoid, to help hold onto what you’ve got.”

David Kerns, Head of Private Clients at Moneycorp, said: “Our research shows that the majority of British people making overseas payments are leaving it to chance. At a time when people are trying to make the most of their investments, it is vital that they take some simple steps to ensure they are not wasting their hard-earned cash. A little bit of research can go a long way.

David Kerns, Head of Private Clients at Moneycorp

“Of the Brits that make regular overseas payments, one in four (25.36%) transfer money for property abroad; nearly one in five (18.39%) are splashing out on luxury items; and over one in ten (13.1%) are splurging on overseas weddings“

David Kerns continued: “The majority of Brits who make regular international payments do so to cover overseas property costs – and they really should be planning ahead. For example, forward contracts would allow them to lock into the best exchange rates available and be sure of their outgoings.

“Our automated Regular Payment Plan would be ideal for their regular transfers, as they could set up a plan once and receive currency in their overseas bank account every month – or pick from a range of alternative frequencies. It is clear consumers need more guidance about overseas payments, to help them make the most of their money. They can get this guidance from a currency specialist like Moneycorp.”

Regional trends

The research reveals some interesting trends across the UK regarding people’s reasons for making overseas transfers:

Wales:

• Of those people living in UK making international payments.  The Welsh are the biggest overseas spenders in the UK – of those that make international payments, the Welsh transfer, on average, £1,299 each month
• People living in Wales are most likely to be planning a foreign wedding – one in five (21.36%) of those making overseas payments are spending the money on their big day abroad
• Of those making international payments, almost one in three (32.13%) are transferring funds for property overseas

East Midlands:

• People in the East Midlands are the second biggest overseas spenders – of those that make international payments, they move, on average, £1,243 each month
• Of those making international payments, over a quarter (26.16%) are financing property abroad and almost one in five (18.11%) are paying for a foreign wedding

West Midlands:

• People in the West Midlands are buying the most luxury items – almost one in five (18.63%) of those that make overseas payments are splashing out on expensive treats
• On average, people in  the West Midlands that make overseas payments spend £600 each month

East of England:

• People in the East of England are least likely to be planning a foreign wedding – with fewer than one in ten (9%) of those transferring money abroad doing so for this purpose
• The East of England is the only region where no foreign payments were made for luxury items and, on average, respondents who make international payments spend just £390 each month

North East of England:

• People in the North East of England are most likely to transfer money overseas for property.  Of those that make international payments, almost one in 10 (9%) of those transferring money abroad for this reason

For more information, go on-line at: www.moneycorp.com

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.