Thursday, September 19, 2024

House payments delayed by ‘global payments issue’

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The Bank of England has said a “global payments issue” is delaying some high value and time sensitive payments, including house purchases.

The Bank said it was working to resolve the issue with the CHAPS system, which is used by traditional High Street banks as well as international lenders, as quickly as possible.

The Bank of England has advised anyone who is worried about a CHAPS payment to contact their bank.

The problem is not affecting ordinary debit and credit payments, cash points or bank transfers.

“A global payments issue is affecting the Bank’s CHAPS service and delaying some high value and time-sensitive payments, including some house purchases,” the Bank of England said in a statement

“We are mindful of the impact this is likely to have and are working closely with a third party supplier, industry and other authorities to resolve the issue as promptly as possible.”

Overall, there are 200,000 payments via CHAPs every day in the UK, at a value of £363bn.

Financial institutions use the CHAPS system to transfer money between them, accounting for the majority of payments.

However, individuals could be affected as it is used for high-value transfers such as house completions and the purchase of cars.

“This has the potential to be a nightmare scenario for home buyers on the day of completion, potentially leaving them and their removal vans all packed up with nowhere to go,” said Andrew Montlake, from mortgage broker Coreco.

“The home buying process relies on this system so for any buyers looking to complete, it is worth a call to their conveyancers to make sure all is in order.”

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