Singapore’s United Overseas Bank (UOB) has suspended its loans programme for London properties citing uncertainties caused by UK’s decision to exit the European Union.
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"We will temporarily stop receiving foreign property loan applications for London properties. As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments," a UOB spokeswoman said.
The lender said that it was now monitoring the market closely to determine when the property loan offering would be reinstated.
The vote for Brexit on 23 June created turmoil in the global financial markets, with the pound pushing to a 31-year low.
The Singapore dollar gained nearly 10% against the British pound following the referendum.
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By GlobalDataSingapore’s DBS Group Holdings too asked its customers to be cautious following the Brexit but said that it would continue with its property financing programme for London purchases.
DBS executive director of secured lending Tok Geok Peng said: "For customers interested in buying properties in London, we would advise them to assess the situation carefully before committing to their purchases as there could be potential foreign exchange and sovereign risks."
