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Brexit: Singapore Bank Uob Suspends London Property Loans

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Merits its own thread IMO

BBC front page news - so is this supposed to be more negative news about Brexit?


Brexit: Singapore bank UOB suspends London property loans

Singapore's third largest lender UOB said it has suspended its loan programme for London properties.
The decision comes in response to uncertainty caused by the UK's decision to leave the European Union, the bank said.
The vote on 23 June caused global market turmoil and pushed the pound to record lows. The Singapore dollar has gained about 10% since the referendum.
Singaporeans were among the top buyers of London property in 2015.
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."
Exchange rate risks
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.
"With foreign exchange risks, even if the value of the overseas property rises, any gains will be eroded if the country's currency depreciates against the Singapore dollar," Mr Tok explained.
Singapore's other big lender, OCBC bank, told the BBC it had not made any changes to its advisory policy.
Head of Consumer Secured Lending Phang Lah Hwa told the BBC that OCBC was "still availing financing for London properties and monitoring the situation closely".

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Or they have over extended themselves and have a nice cover story.

Despite operating in this market for years, now that Sterling has weakened they chose to act sensibly and stop lending into the London bubble. If the market wasn't crashing they'd be talking things up because ot the favourable exchange rates. They are reacting to the HPC. Maybe they're in time maybe not.

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Perhaps the depreciation of sterling has resulted in a few of their loans (likely in SGD) entering negative equity.

Could it be that the "overseas wealthy cash buyer" types flooding into London property were actually buyers with mortgages arranged back home?

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One of Singapore's largest lenders, UOB, says it has suspended its loan programme for London properties.

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

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 UK commercial 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."

Edited by Bruce Banner

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They're expecting currency to be volatile. QE ? Drop interest rates? Increase interest rates? Euro gets trashed? Who knows?

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And how's this for a complete 'non' answer from the editor:

A You are not alone in feeling nervous about post-Brexit house prices but I don’t think the answer to your worries is to jump ship and move to Germany. The real trouble is that nobody knows what’s going to happen to house prices nor when any changes will take effect.

What a complete **** of ***** that paper has become.

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So this reveals the true nature of the wealthy Asian cash buyer (or at last some)? If they stop dishing out the loans, aren't their expectations for London price risk going to become self-fulfilling?

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And how's this for a complete 'non' answer from the editor:

What a complete **** of ***** that paper has become.

The real trouble is that nobody knows what’s going to happen to house prices nor when any changes will take effect.

Financial instability has been there for years, bubble fuellers were just in denial .

Have the Chinese banks just stopped lending £2k deposits on London flats ?

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The report I read on the BBC said something like SIngapore buyers ( ex pats I would bet ) were the biggest buyeres last year according to Knight Frank

Looks like it's good night Frank to the mega bubble

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won't most this lending be for commercial property acquisitions and development, commercial and resi are often conflated on this website.

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http://news.sky.com/story/1719585/london-home-loans-suspended-by-singapore-bank

A bank in Singapore has become the first in the world to suspend loans for the purchase of homes in London, citing uncertainty over the UK's vote to leave the EU.

United Overseas Bank (UOB) said: "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".

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HTBF. Help to buy for foreign millionaire investors?

But....but.... I thought they were all CASH buyers?!!!

...let's face it ...lending to a market which is held up by international money laundering is a stupid gamble in the first place..... :rolleyes:

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