Olive Tree Mortgages Planned Foreign Exchange programmes can reduce your FX costs by over 4% per transaction

If you have taken a French Equity Release Mortgage you will need to make Euro Payments or Euro Repayments on a regular basis. Using your bank or High Street institution to do this could cost you a small fortune in bank commission charges and bank transfer fees. Here's how to save money.

If you presently make your French Equity Release payments and repayments by individual funds transfer using your bank or other High Street financial institution you will probably be paying up to 4% or more for the service than you need pay.

Their charges will be a composite of three elements, SPREAD, COMMISSION and TRANSFER CHARGE.

The SPREAD is the difference between the rate at which they buy from you and the rate at which they sell to you.

The COMMISSION is the charge for providing the service to you.

The TRANSFER CHARGE is the charge they levy for moving the funds to where you want them to go.

In all these charges will typically add up to a cost to you of around 4% higher than you could or should be paying. Over the life of a 20 year €200,000 Euro Mortgage you will waste around a staggering €11,433.60 paying unnecessary bank charges and commissions.

The good news is, there is another way - a Planned Foreign Exchange programme.

In general terms this is how it works. Using a solid and secure FSA regulated foreign exchange broker you enter into a arrangement to transfer a regular variable sum into Euros that matches your payments and repayments plus a small additional margin which is paid into a Euro deposit account in your name with your own European bank.

You get three significant benefits:

1. Because the agreement is not transaction by transaction you can get better foreign exchange rate from a foreign exchange broker.

2. You gain from the phenomena of "pound cost averaging" which will have the effect of smoothing the fluctuations of the cross currency foreign exchange rates.

3. You trade at lower cost because a reputable foreign exchange broker will have a lower spread, charge no commission and make no transfer charge thus your Euro foreign exchange will be cheaper.

For a free no nonsense discussion as to how our services can save you money on your Euro foreign exchange contact us here or give us a call on +44 (0)20 7193 7843.