The Bank of England is currently facing a “global payments issue” which is causing delays in high value and time-sensitive payments, including house purchases. The issue is with the CHAPS system, used by traditional High Street banks as well as international lenders. The Bank is working to resolve the problem as quickly as possible and has advised those concerned to contact their bank.
The problem is not impacting ordinary debit and credit payments, cash points, or bank transfers. Approximately 200,000 payments are made through CHAPS every day in the UK, totaling £363 billion.
Financial institutions rely on the CHAPS system for transferring money between them, with high-value transactions such as house completions and car purchases being affected. This could potentially lead to complications for home buyers on the day of completion, leaving them stranded with packed belongings and nowhere to go.
Experts are urging individuals involved in house purchases to stay in close contact with their conveyancers to ensure everything is in order. Andrew Montlake, from mortgage broker Coreco, warns that the home buying process heavily relies on the CHAPS system and any issues could result in significant disruptions.
The Bank of England is working with third-party suppliers, industry partners, and other authorities to address the problem promptly. Those affected by the issue are encouraged to share their experiences to better understand the impact and assist in finding a resolution.
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Photo credit www.bbc.co.uk