Singapore’s UOB suspends London property loans following Brexit
Singapore’s UOB suspends London property loans following Brexit
United Overseas Bank (UOB) in Singapore has suspended its loan programme for London properties in the aftermath of Brexit.
The vote in favor of Britain leaving the EU has caused global market uncertainty and seen a severe devaluation of the pound.
UOB told the BBC in a statement: “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.”
More: Will Brexit trigger a ‘buying spree’ for Asian investors?
Singapore has so far seen positive effects since the referendum, with the Singapore dollar rising by about 10%.
According to Knight Frank, Singaporeans were the top Asian buyers of UK commercial property in 2015.
UOB is Singapores third biggest lender. The biggest, DBS, is continuing with financing as normal but is advising customers to be cautious.
Read next: Brexit could have major repercussions on UK real estate
Source: Property Report