Brexit bumps up the cost of an overseas wedding
- Sterling falls have pushed up the cost of an overseas wedding and honeymoon
- 5 tips to help you make the most of your overseas wedding budget
The dramatic fall in the pound since the Brexit vote has pushed the cost of an overseas wedding and honeymoon significantly - £10,000 worth of venue, wedding breakfast, accommodation and honeymoon, at popular destinations will now cost up to £2,519 more than in June 2016.
|Currency||£10,000 in foreign currency at June 2016 rates||Today’s cost in sterling for the same amount of foreign currency||Increase in sterling cost|
|South African Rand||215,416||£12,519||£2,519|
|Hong Kong Dollar||114,805||£11,411||£1,411|
Chris Saint, Senior Currency Analyst, Hargreaves Lansdown;
“With the average cost of a UK wedding now north of £25,000, its understandable that couples often look abroad to cut the costs of the big day, with the added bonus of more reliable weather, luxurious venues and exotic cuisine. Even those who stick to the UK for the big day face bigger honeymoon costs if travelling overseas. The exception is Turkey where political unrest has weakened the Lira relative to the pound.
Planning a wedding can take an average of 14 months and a lot can happen in currency markets during that time. Sterling has been dominated by key events such as elections on both sides of the Atlantic and the Brexit referendum. The next 14 months could bring further volatility as the details of our exit from the European Union become clear.”
5 Tips to help you make the most of your overseas wedding budget.
There is lots to take into consideration when planning a dream wedding overseas. From paying for venue hire to catering and accommodation, there are a number of suppliers which often need to be paid in foreign currencies and these costs can quickly add up. Here are our tips to make the most of your overseas wedding and honeymoon budget:
1) Choose your destination carefully
Exchange rates and local costs can make a big difference to the overall cost.
2) Beat the banks’ exchange rates
Banks are typically uncompetitive when it comes to exchange rates and using specialist currency brokers can typically save up to 3%, a £225 saving on a transfer of £7,500.
3) Watch out for transfer fees
Banks will often add extra fees regardless of the amount being transferred. If you are transferring small amounts or making regular payments, such as to multiple wedding suppliers, this can make a big difference.
4) Keep to your budget – fix your exchange rate
Many currency brokers will allow you to fix an exchange rate for up to two years. This is called a forward contract and will help you to stick to your budget, especially if you don’t have room for your costs to increase. A forward contract is useful if you want to guard against volatility in the currency markets, giving you certainty over the amount you will be paying and allowing you to focus on the wedding itself.
5) Make sure your money is safe
Firms who have been authorised by the Financial Conduct Authority (FCA) are normally considered safer than firms who are just registered firms. This is because authorised firms are legally required by the FCA to safeguard the assets of individuals and businesses making international payments. This means they must separate any payments they receive from their own company funds and demonstrate they are financially stable. Registered currency brokers are not subject to the same strict regulations.