BOEAll mortgage transactions on hold as BoE hit by technical problems

UK borrowers cannot access a mortgage right now as the Bank of England confirmed a key payments system has been hit by technical problems.

The Boe says it identified a technical issue this morning related to some routine maintenance of the real time gross settlement system payment system and has paused settlement while it resolves it.

The RTGS system allows money to be transferred between banks in real time to fund investment banking and consumer loans.

The fault has affected the Clearing House Automated Payment System, which processes high value same-day transfers, used by solicitors to transfer the mortgage during the house-buying process.

The Boe says it is working to address the issue as quickly as possible and plans to restart the RTGS payment system in a controlled manner.

It says the most important payments are being made manually and says all payments made today will be processed.

It is unclear whether house purchases are being included in the important manual transactions. The Council of Mortgage Lenders says it has yet to be alerted to problems by its members.

The Chaps system moves billions of pounds every day between Britain’s main banks and building societies.

In September 2014, Chaps processed 3.2 million payments worth £5.8trn with an average volume of 145,638 a day.

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