Singapore bank suspends loans on London homes

Barclays-HSBC-Canary-Wharf-London-700.jpg

The third-largest bank in Southeast Asia has suspended loans on London properties following the Brexit vote.

Singaporean lender United Overseas Bank said it would temporarily halt loans for properties in the capital as a result of in uncertainty caused by the UK vote to leave the European Union, according to Bloomberg.

In an email, a spokesperson for the bank reportedly said: “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. We are monitoring the market environment closely and will assess regularly to determine when we will re-instate our London property loan offering.”

Other Singapore lenders DBS Group Holdings Ltd and Oversea-Chinese Banking Corp., said they continue to lend money for London purchases but urged buyers to proceed with caution.

Tok Geok Peng, DBS’s executive director of secured lending, said in an email: “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.”