DHAKA: Singapore’s third largest lender UOB says it has suspended its loan program for London properties.

The decision comes in response to uncertainty caused by the UK’s decision to leave the EU, the bank said, reports the BBC.

The vote on 23 June caused global market turmoil and pushed the pound to 31-year lows. The Singapore dollar has gained about 10% since the referendum.

Singaporeans were the top Asian buyers of London property in 2015, according to consultancy Knight Frank.

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.’

Singapore’s biggest lender, DBS, is continuing to provide financing, but is advising its customers to be cautious.

‘For customers interested in buying properties in London, we would advise them to assess the situation carefully,’ DBS executive director of secured lending, Tok Geok Peng, told the BBC.

BDST: 1400 HRS, JUN 30, 2016
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