The collapse has started or is it the shut down drill ??
Bank of England’s real time payment system is down — business live
Bank of England crash will have ‘cascading effect’ on house movers
The collapse of the Chaps system will have a knock-on effect on people trying to move house today, experts are warning.
Mark Hayward, managing director of the National Association of Estate Agents, fears a ‘cascade effect’, if payments due to be processed today are delayed until Tuesday.
This could mess up hiring a removals firm, or switching telephone, water, electricity and gas supplies.
“Whilst Monday is not the busiest day in terms of completions, the failure of the payments system for UK house purchases will have a cascading effect and it is likely any payments will now be held up for a day or more as money takes time to transfer, which also means a delay for those hoping to move. This week is half term for many, so it will be a time when a lot of people are trying to move house – no doubt it will be a frustration for those that are now delayed.
“The one part of a sale which is fixed is the completion date – with payments not being able to be processed today, this will not only have an effect in terms of the completion date moving, but also accompanying arrangements which may have been scheduled, such as moving support or van hire and the transfer of utilities to the new address.”
It’s pretty rare for a vital systems such as the Chaps payment service, which handles hundreds of billions of pounds each day, to crash in this way.
Technical glitches are inevitable, which is why there should be a back-up system in place, points out Izzy Kaminska of the Financial Times:
The Telegraph reports…
From Bix Weir:
Here’s the statement:
Euroclear is monitoring the current technical issue with the RTGS system at the Bank of England.
We are working closely with the BoE and if necessary will extend our own operational deadlines, to ensure that all settlement and payment instructions will be processed today.