Ulster Bank Tracker - Timing of passing on ECB rate decreases

Firstly, I'm a newb to the forum so please forgive if I'm duplicating an existing thread, my searches so far haven't hit on precisely what I'm hoping to discuss.

I currently have a tracker Home Loan with ULB and with the high frequency of the ECB movements of late, I've become particularly aware of precisely when the reductions in the rate are being applied to my account. At the moment I'm right in the middle of query on the matter with ULB though its been tedious and stressful to say the least.

Our intial queries were taken by customer service officials who seemed to know even less than I did about mortgages and they kept referring me to the T&Cs of my mortgage - which I had, and was familiar with in detail. Eventually I ended up requesting a copy of what they claim were our T&Cs a process which took follow up phone calls and an escalation to a higher level, but it eventually rewarded me with a copy of our original signed Offer of Advance and a very polite, detailed and thorough explaination which hinges upon a condition of their tracker borrowings which allows ULB a 10 day time frame to adjust the rate.

This is precisely what I was hoping for - a definate answer and confirmation that the Offer of Advance which they supplied is identical to my original (particularly to note if there was any appendix or some such tagged on to theirs which was not included in my own.) I have read the Offer of Advance literally word for word, both copies just to be sure. I've gone over the Special Conditions which quote a rate of ECB + 1.15% and the General conditions which specifies the method for calculation and charging of interest on the Home Loan. Not in the entire document is there a mention of a ten day period - and the opening paragraph states the document is legally binding according to the special and general conditions which are contained in the document.... no appendix or referenced additional lending conditions quoted anywhere.

I've formulated my written responce to Ulster Bank and its a waiting game for me now - although given what I've been reading here I'm not feeling too confident!
My mortgage is hovering about the e200k mark so the effect of 0.5% ECB cut is e2.75 per day or 27 quid each time it moves by a half percent and they wait ten days. Since November when this kicked off, it has in real terms cost me e150. Obviously these are volatile times and the ECB decreases are exceptionally frequent, but all the same this mystical 10day rule could cost me signifigantly over the full term of the borrowing.

So, why the wall of text? I am just curious if anyone else has encountered similiar and if they have had any positive results with raising a query along these lines.

Thanks for your patient reading

Provided delays in passing on rate increases have been similar, I don't think you have much cause for complaint. I realise this isn't the question you asked!

This was sort of discussed as part of the linked thread last year: http://www.askaboutmoney.com/showthread.php?t=95757
Some people suggested that 30days was the period UB had to apply reductions in rate, so your 10 day delay is an improvement.

Had a grievance late in October 2008 with Ulster bank when rates began to tumble. At that time UB had delayed passing the rate decrease on citing their '30 day rule' thereby saving themselves the decrease on one mortgage payment. Funnily enough when the rate had increased in July 08 the rate was passed on sharply. After many letters and calls together with public anger they passed on the rate within the month the rate was reduced.

I see your problem but I think just be happy you re on a tracker rate. Spare a thought for the multitude on fixed rates, a friend of mine is on 5.69% and has a further 2 years to run.

Oh I'm absolutely relieved in the current climate to have a Tracker Mortgage, however it was something I was very certain about when making the leap to purchase our first home and specifically choose a Tracker Mortgage Product for fear of a worst case scenario (never expecting it this bad though). I see my younger brother struggling with shocking fixed rates and with a home now in negative equity - so believe me I know I'm doing alright by comparission.

That being siad, I dont think anyone should be willing to roll over and take it just because the economic climate is harsher now or because others happen to be in a worse position. I find it incredulious to have recieved a letter which actually enclosed the T&Cs of my borrowing, but then goes on to quote something supporting their position which doesn't appear in the T&Cs in the first place.

I intend to stand my ground and dig my heels in with them, and I will escalate it as far as I can, even if it is in the end purely a matter of principle. My own career is in the financial services industry, so I know the game from the inside, and the extent that banks will leave something which gives a greater margin in their favour until it eventually gets blown out into the public.

You can bet that if I had defaulted a payment that the interest would be accruing immediately on the arrears and it wouldn't take them ten or thirty days to implement it. Or if I withdrew a million euro deposit that the credit interest wouldn't continue to build up until they had time to catch up. Banking systems are a hell of a lot more advanced than they claim in pathetic excuses for their tardiness and profiteering. So until I see in black and white text on a document I signed, that there is a ten day clause, I simply won't buy it.

I've had a letter from ULB again this morning about this issue. They confirmed that my mortgage was drawn down before the introduction of a waiting period for the implementation of ECB base rate changes to mortgage accounts. However they say;

Due to the increased frequency changes to the ECB base rate particularly in the last few months it was decided that changes in relation to the ECB base rate would be applied to all Tracker Mortgages within 10 days.

Still not a single mention from them how they are doing this within the T&Cs of our mortgage. It's basically giving themselves the oppertunity to increase the margin on our borrowing for ten days after the ECB movement becomes effective. Have asked them to explain how they can justify this in the context of our T&Cs and why its been done without a single piece of correspondence to us, including asking how come it takes an extensive complaint process to find out they have tagged this 10day clause onto our borrowing.

Grrrrrrr!