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House payments delayed by ‘global payments issue’

Banks and lenders use the CHAPS system to transfer money between them.

Several thousand financial institutions in the UK could have been affected, either directly or indirectly.

However, individuals use it for high-value transfers such as house completions and the purchase of cars. On average there are around 4,000 housing transactions a day.

“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.”

Solicitors can agree to complete property transactions with an understanding that the funds will be transferred later, but chains could be affected.


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