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Serious Brexit hit: Singapore bank suspends loans for London

Staff writer |
A top Singapore bank has suspended loans to anyone wanting to buy property in London, citing uncertainty from Britain's vote to quit the EU.

United Overseas Bank (UOB), one of the city-state's three homegrown lenders, said it was monitoring the market closely to determine when the loans would resume.

"We will temporarily stop receiving foreign property loan applications for London properties," it said in a statement.

"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," it added.

"We are monitoring the market environment closely and will assess regularly to determine when we will re-instate our London property loan offering."

Financial markets were plunged into turmoil following last week's Brexit vote and while they have enjoyed a recovery over the past few days, analysts warn there could be repercussions well beyond Britain and Europe.

Market watchers said property prices in Britain are expected to plummet as the pound takes a beating, and foreign investors, especially those from Asia, are already poised for a buying spree.