Gloomy economic outlook sends Brits packing

While the city is waiting with baited breath to see whether the Monetary Policy Committee cut UK interest rates this Thursday, for many Britons it could be a case of too little, too late.

After years of escalating house prices, 12 months of rising mortgage costs and a month of uncertainty following the credit crunch, the prospect of a life abroad and no mortgage left to pay off is becoming all the more appealing, according to new research from currency specialists HiFX.

The HiFX research reveals that more than a third (37%) of Brits are thinking about the possibility of moving abroad, as a direct result of the current economic climate in the UK. This figure rises among mortgage payers, with four out of ten considering selling up and moving overseas, if it meant that they could buy a property outright and live mortgage free. One in ten (11%) of those surveyed said that they are struggling to meet mortgage repayments after recent rate rises and just 28% say they are happy with the current economic climate in the UK and would not move abroad.

Mark Bodega, Director at HiFX comments, “The results of our research paint a stark picture of UK consumer confidence at the moment. While moving overseas has long been a tradition for those seeking sunnier climes, a different career path or a peaceful retirement, it would now seems that more and more people are no longer considering emigration as a luxury but a necessity. With the current uncertainly in the global economy people need to do their homework when considering a move abroad and work out if the grass really is greener on the other side of the fence.”

23% of people seriously considering moving abroad are struggling to meet their mortgage repayments

People in London and the North are most likely to consider selling up in the UK and purchasing a property abroad outright in order to become mortgage free

25-34 year olds are the age group most likely to consider selling up in the UK and purchasing a property abroad outright in order to become mortgage free

On average, a UK family emigrates abroad with assets of £250,000 from the sale of a house, car and some savings. While they carefully plan their new lives in minute detail, what many overlook is the potential cost of leaving their currency exchange in the wrong hands. By transferring their worldly goods to their new country via a high street bank, the average family risks losing up to a staggering £10,000 of their assets. According to research from HiFX, banks typically charge 4% more than currency specialists in unfavourable exchange rates.

Bodega continues, “Making the decision to move to a new country is a big undertaking, both emotionally and financially. The last thing that any family taking the leap would want to do is unnecessarily lose as much as £10,000 in the process – especially if one of their aims of moving is to lighten their financial burdens. Unfortunately though, this is exactly the case for the many people who entrust the transfer of their assets from old to new country to their regular high street bank. This huge loss could be avoided simply by people being aware of the alternatives and making sure they get the best rate for their money, early on in the process.”

For Brits who live overseas or go abroad for long periods of time, HiFX has a regular payments plan allowing them to manage regular currency payments such as pensions, salary and mortgage transfers and because HiFX do not charge to send money overseas and have eliminated all receiving charges, they save their customers up to £300 each year.

Top ten most popular emigration destinations

Australia
Canada
Cyprus
France
Germany
Italy
New Zealand
South Africa
Spain
USA