Congratulations on buying a new home in Portugal! It is all very exciting; however there are lots of things to think about now, especially regarding the payment for your new property.

A deposit is always expected in advance, usually payable on the day the contract is signed, and this can range from 10% to 70%, depending on the area and who is selling the property. The deposit can also vary, depending on whether you are buying from a private advertiser, or directly from the developer of a new build. If you decide to buy a new property, the offer can be made directly to the developer; however, offers must be made through an estate agent if you are buying a privately advertised property.

The process of transferring your money overseas to your solicitors account is just as easy as making a transfer in the UK. However, if you use a bank to do the transfer, it can end up costing a lot more and taking almost twice as long. If you choose to use a currency specialist, not only will they be able to get you a better rate, nearly 4% better than bank rates, but they are also quicker, taking just 1-2 days compared to the banks 5-10 days.. Once you have registered with a specialist, all they will need from you is the account details of your solicitor and also the reference title for the transfer to appear as (ask your solicitor what this should be). With a currency specialist, funds will reach their destination much quicker than they would using a bank service. Where a bank can take 5-10 days, a specialist will only take around 2 days.

To put into perspective the amount of savings you can expect; the banks usually charge up to 4% more on currency exchange than independent specialists do. For example, you will pay an extra £4000 per £100,000 you convert, if you use a bank. When purchasing a property, you will often be moving a large sum of money, so using a specialist can save you thousands.

A currency specialist will also be able to offer several different options, whereas a bank does not do this. By using a specialist you can choose an option that suits your needs. You may wish to choose an ‘order to buy’ if you do not need to transfer your money straight away. This means that you will agree a rate that you are happy to pay for your currency; the trader will then wait for the rate to hit the right level. If and when it does hit the agreed level, they will call you and ask if you would like them to purchase the money on your behalf.

A ‘forward’ contract is ideal if you have a tight budget but again, do not need the money moved right away. The ‘Forward’ contract allows you to fix your currency at the current rate (if it suits you) and then you can purchase the currency a few months later, for the same fixed rate. This means if the rate takes a turn for the worse, instead of losing money, you will pay the better rate and save money.