Singapore Bank Suspends Loans for London Properties After Brexit

A top Singapore bank said on Thursday it has suspended loans to anyone wanting to buy property in London, citing uncertainty from Britain's vote to quit the EU but dealing a blow to investors looking to make the most of the weak pound.

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.

Singapore's biggest bank Development Bank of Singapore (DBS) said it would continue to provide financing for property purchases in London but gave customers the option of borrowing in Singapore dollars or pounds.

"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," DBS said in a statement.