Document:

EXHIBIT 4.3

                                 25 June 2004
                                 ------------

                               NORTHERN ROCK PLC
                               as Administrator

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                               NORTHERN ROCK PLC
                           as Seller and Beneficiary

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

                    _______________________________________

                           ADMINISTRATION AGREEMENT
                    FIFTH DEED OF AMENDMENT AND RESTATEMENT
                    _______________________________________

                           SIDLEY AUSTIN BROWN & WOOD
                                WOOLGATE EXCHANGE
                              25 BASINGHALL STREET
                                 LONDON EC2V 5HA
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937

<PAGE>

THIS DEED is made on 25 June 2004

BETWEEN:

(1)  NORTHERN ROCK PLC (registered number 3273685), a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
     capacity as Administrator;

(2)  GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
     limited company incorporated under the laws of Jersey, Channel Islands
     whose registered office is at 22 Grenville Street, St. Helier, Jersey JE4
     8PX, Channel Islands in its capacity as Mortgages Trustee;

(3)  NORTHERN ROCK PLC (registered number 3273685), a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
     capacity as Seller and in its capacity as a Beneficiary;

(4)  GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
     limited company incorporated under the laws of Jersey, Channel Islands
     but acting out of its offices established in England (registered overseas
     company number FC022999 and branch number BR005916) at 69 Park Lane,
     Croydon CR9 1TQ in its capacity as a Beneficiary; and

(5)  THE BANK OF NEW YORK a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL in its
     capacity as Security Trustee.

WHEREAS:

(A)  The Administrator carries on the business of, inter alia, administering
     mortgage loans secured on residential properties within the United
     Kingdom.

(B)  The Seller has sold and assigned to the Mortgages Trustee certain
     Mortgage Loans, together with the benefit of Related Security for the
     same on the terms and subject to the conditions set out in the Mortgages
     Sale Agreement among the parties hereto.

(C)  The Administrator has agreed to administer the Mortgage Loans on behalf
     of the Mortgages Trustee (for and on behalf of the Seller and Funding)
     and to provide certain other administration and management services to
     the Mortgages Trustee, the Seller and Funding on the terms and subject to
     the conditions contained in the Administration Agreement dated 26 March
     2001 (as amended, varied, novated or supplemented from time to time, the
     "Administration Agreement").

(D)  The parties have agreed to amend and restate the Administration Agreement
     (the "First Amended and Restated Administration Agreement") pursuant to
     the provisions set out in a deed of amendment and restatement dated 28
     September 2001 (the "First Deed of Amendment and Restatement").

(E)  The parties have agreed to amend and restate the First Amended and
     Restated Administration Agreement (the "Second Amended and Restated
     Administration

<PAGE>

     Agreement") pursuant to the provisions set out in a deed of amendment and
     restatement dated 27 January 2003 (the "Second Deed of Amendment and
     Restatement").

(F)  The parties have agreed to amend and restate the Second Amended and
     Restated Administration Agreement (the "Third Amended and Restated
     Administration Agreement") pursuant to the provisions set out in a deed
     of amendment and restatement dated 24 September 2003 (the "Third Deed of
     Amendment and Restatement").

(G)  The parties have agreed to amend and restate the Third Amended and
     Restated Administration Agreement (the "Fourth Amended and Restated
     Administration Agreement") pursuant to the provisions set out in a deed
     of amendment and restatement dated 28 January 2004 (the "Fourth Deed of
     Amendment and Restatement").

(H)  The parties now wish to amend and restate the Fourth Amended and Restated
     Administration Agreement pursuant to the provisions set out herein.

(I)  With effect from the date hereof, the provisions of the Administration
     Agreement, the First Amended and Restated Administration Agreement, the
     Second Amended and Restated Administration Agreement, the Third Amended
     and Restated Administration Agreement, the Fourth Amended and Restated
     Administration Agreement and this Deed shall be read and construed as
     follows.

NOW IT IS HEREBY AGREED as follows:

1.   INTERPRETATION

1.1  The provisions of the Master Definitions Schedule as amended and restated
     by (and appearing in Appendix 1 to) the Master Definitions Schedule
     Eighth Deed of Amendment made on 26 May 2004 between, among others, the
     parties hereto (as the same have been and may be amended, varied or
     supplemented from time to time with the consent of the parties hereto)
     are expressly and specifically incorporated into and shall apply to this
     Deed.

1.2  The Administration Agreement as amended and restated pursuant to the
     First Deed of Amendment and Restatement, the Second Deed of Amendment and
     Restatement, the Third Deed of Amendment and Restatement, the Fourth Deed
     of Amendment and Restatement and pursuant hereto shall be referred to
     herein as the "Amended and Restated Administration Agreement".

1.3  As used in the Amended and Restated Administration Agreement the terms
     "Administration Agreement", "this Administration Agreement", "Agreement",
     "this Agreement", "herein", "hereinafter", "hereof", "hereto" and other
     words of similar import shall mean or refer to the Amended and Restated
     Administration Agreement, unless the context otherwise specifically
     requires.

                                      2
<PAGE>

2.   AMENDMENTS TO THE FOURTH AMENDED ADMINISTRATION AGREEMENT

     Upon execution of this Deed by the parties hereto, the Fourth Amended and
     Restated Administration Agreement shall be and hereby is amended and
     restated in the form of Appendix I hereto.

3.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

     No person shall have any right to enforce any provision of this Deed or
     any provision of the Amended and Restated Administration Agreement under
     the Contract (Rights of Third Parties) Act 1999 but this shall not affect
     any right or remedy of a third party which exists or is available apart
     from that Act.

4.   COUNTERPARTS

     This Deed may be executed in any number of counterparts, and has the same
     effect as if the signatures and/or seals on the counterparts were on a
     single copy of this Deed.

5.   GOVERNING LAW

5.1  This Deed is governed by, and shall be construed in accordance with,
     English law.

5.2  Each of the parties hereto irrevocably agrees that the courts of England
     shall have jurisdiction to hear and determine any suit, action or
     proceeding, and to settle any disputes, which may arise out of or in
     connection with this Deed and, for such purposes, irrevocably submits to
     the jurisdiction of such courts.

                                      3
<PAGE>

                                 EXECUTION PAGE

IN WITNESS WHEREOF this Deed has been executed as a deed and delivered by the
parties hereto on the day and year first above written.

as Administrator, Seller and Beneficiary

EXECUTED AS A DEED by               )
NORTHERN ROCK PLC                   )
by:                                 )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

as Mortgages Trustee

EXECUTED AS A DEED by               )
GRANITE FINANCE TRUSTEES LIMITED    )
by:                                 )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

                                      4

<PAGE>

as Beneficiary

EXECUTED AS A DEED by              )
GRANITE FINANCE FUNDING LIMITED    )
by:                                )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

as Security Trustee

EXECUTED AS A DEED by              )
THE BANK OF NEW YORK               )
acting by:                         )

Authorised Signatory

Name:

Title:

                                      5
<PAGE>

                                  Appendix I

                 Amended and Restated Administration Agreement

                                      6

<PAGE>

                              Dated 25 June 2004
                              ------------------

                               NORTHERN ROCK PLC
                               as Administrator

                                    - and -

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                                    - and -

                               NORTHERN ROCK PLC
                                   as Seller

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

                    _______________________________________

                          FIFTH AMENDED AND RESTATED
                           ADMINISTRATION AGREEMENT
                    _______________________________________

                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937
                              REF: 30507-2/662691

<PAGE>

                                   CONTENTS

Clause                                                                  Page No.

1.   Definitions and Interpretation...........................................2

2.   Appointment of Administrator.............................................2

3.   The Administration Services..............................................3

4.   Interest Rates...........................................................6

5.   Administration of Mortgages..............................................9

6.   No Liability............................................................14

7.   New Mortgage Loans......................................................14

8.   Product Switching and Further Advances..................................14

9.   Redemption of Mortgages.................................................15

10.  Powers of Attorney......................................................15

11.  Costs and Expenses......................................................16

12.  Information.............................................................16

13.  Remuneration............................................................19

14.  Insurances..............................................................19

15.  Title Deeds.............................................................21

16.  Data Protection.........................................................22

17.  Covenants and Representations and Warranties of Administrator...........23

18.  Services Non-exclusive..................................................24

19.  Termination.............................................................24

20.  Further Assurances......................................................27

21.  Miscellaneous...........................................................27

22.  Confidentiality.........................................................29

23.  No Partnership..........................................................30

24.  Assignment..............................................................30

25.  Security Trustee; Authorised Third Party................................30

<PAGE>

26.  New Intercompany Loan Agreements........................................31

27.  Non Petition Covenant; Limited Recourse.................................31

28.  Amendments and Waiver...................................................32

29.  Notices.................................................................32

30.  Third Party Rights......................................................33

31.  Execution in Counterparts; Severability.................................33

32.  Governing Law and Submission to Jurisdiction............................34

33.  Process Agent...........................................................34

34.  Appropriate Forum.......................................................34

SCHEDULE 1  THE SERVICES.....................................................35

SCHEDULE 2  FORM OF INVESTORS' QUARTERLY REPORT..............................36

SCHEDULE 3  ADMINISTRATOR REPRESENTATIONS AND WARRANTIES.....................40

SCHEDULE 4  AUTHORISED THIRD PARTY...........................................42

SCHEDULE 5  MINIMUM SERVICING STANDARDS......................................45

<PAGE>

THIS FIFTH AMENDED AND RESTATED ADMINISTRATION AGREEMENT DATED 25 JUNE 2004
AMENDS AND RESTATES THE ADMINISTRATION AGREEMENT DATED 26 MARCH 2001 BETWEEN:

(1)  NORTHERN ROCK PLC (registered number 3273685), a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
     capacity as Administrator;

(2)  GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
     limited company incorporated under the laws of Jersey whose registered
     office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
     Islands in its capacity as Mortgages Trustee;

(3)  NORTHERN ROCK PLC (registered number 3273685), a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
     capacity as Seller and its capacity as a Beneficiary;

(4)  GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
     limited company incorporated under the laws of Jersey but acting out of
     its branch office established in England (registered overseas company
     number FC022999 and branch number BR0051916) at 69 Park Lane, Croydon CR9
     1TQ in its capacity as a Beneficiary; and

(5)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL, in its
     capacity as Security Trustee;

WHEREAS:

(A)  The Administrator carries on the business of, inter alia, administering
     mortgage loans secured on residential properties within the United
     Kingdom.

(B)  By the Mortgage Sale Agreement, the Seller has agreed to sell and assign
     the Mortgage Loans and Related Security comprised in the Mortgage
     Portfolio to the Mortgages Trustee. The Mortgages Trustee shall hold the
     Mortgage Portfolio together with any New Mortgage Portfolio on trust for
     Funding and the Seller pursuant to the terms of the Mortgages Trust Deed.

(C)  The Administrator is willing to administer the Mortgage Loans on behalf
     of the Mortgages Trustee and to provide certain other administration and
     management services to the Mortgages Trustee, the Seller and Funding on
     the terms and subject to the conditions contained in this Agreement in
     relation to, inter alia, the Mortgage Loans and Related Security sold and
     assigned to the Mortgages Trustee by the Seller.

<PAGE>

IT IS HEREBY AGREED as follows:

1.   Definitions and Interpretation

1.1  Definitions: The provisions of the Master Definitions Schedule as amended
     and restated by (and appearing in Appendix 1 to) the Master Definitions
     Schedule Eighth Amendment and Restatement Deed made on 26 May 2004
     between, among others, the Seller, Funding and the Mortgages Trustee (as
     the same have been and may be amended, varied or supplemented from time
     to time with the consent of the parties hereto) are expressly and
     specifically incorporated into and shall apply to this Agreement.

1.2  Exercise of Discretion: Any reference in this Agreement to any
     discretion, power or right on the part of the Mortgages Trustee shall be
     as exercised by the Mortgages Trustee only as directed by the
     Beneficiaries but subject in each case to the provisions of the Mortgages
     Trust Deed.

1.3  Schedules: For the avoidance of doubt, the parties hereto agree that the
     Schedules attached to this Agreement shall form a part of this Agreement,
     and the provisions of this Agreement shall be construed in accordance
     with such Schedules.

2.   Appointment of Administrator

2.1  Appointment: Subject to Clause 4.5 herein, and until termination pursuant
     to Clause 19 herein (Termination), the Mortgages Trustee hereby appoints
     the Administrator to administer the Mortgages Loans on its behalf, and
     each of the Mortgage Trustee, the Seller and Funding (according to their
     respective estates and interests) each hereby appoints the Administrator
     as its lawful agent on their respective behalves to provide certain other
     administration and management services and to exercise their respective
     rights, powers and discretions, and to perform their respective duties,
     under and in relation to the Mortgage Loans and their Related Security.
     The Administrator in each case hereby accepts such appointment on the
     terms and subject to the conditions of this Agreement. The Security
     Trustee consents to the appointment of the Administrator on the terms of
     and subject to the conditions of this Agreement.

2.2  Power and Authority: For the avoidance of doubt and in connection with
     the rights, powers and discretions conferred under Clause 2.1 herein,
     during the continuance of its appointment hereunder, the Administrator
     shall, subject to the terms and conditions of this Agreement, the
     Mortgage Conditions, the Mortgage Sale Agreement and the Mortgages Trust
     Deed, have the full power, authority and right to do or cause to be done
     any and all things which it reasonably considers necessary, convenient or
     incidental to the administration of the Mortgage Loans and their Related
     Security or the exercise of such rights, powers and discretions, provided
     however that neither the Mortgages Trustee nor Funding nor their
     respective directors shall be required or obliged at any time to enter
     into any transaction or to comply with any directions which the
     Administrator may give with respect to the operating and financial
     policies of the Mortgages Trustee or Funding and the Administrator hereby
     acknowledges that all powers to determine such policies (including the
     determination of whether or not any particular policy is for the benefit
     of the Mortgages Trustee or Funding) are, and shall at all times remain,
     vested, as the case may be, in the Mortgages Trustee and/or

                                      2
<PAGE>

     Funding (and their respective directors) and none of the provisions of
     this Agreement shall be construed in a manner inconsistent with this
     proviso.

2.3  Appointment Conditional: The appointment pursuant to Clause 2.1 herein is
     conditional upon the issue of the First Issuer Notes having taken place
     and shall take effect upon and from the Initial Closing Date
     automatically without any further action on the part of any person
     PROVIDED THAT if the issue of the First Issuer Notes has not occurred by
     30 April 2001, or such later date as the First Issuer and the Lead
     Manager may agree, this Agreement shall cease to be of further effect.

3.   The Administration Services

3.1  General: The duty of the Administrator shall be to provide the services
     set out in this Agreement including Schedule 1 (the "Services").

3.2  Sub-contracts:

     (a)  The Administrator may sub-contract or delegate the performance of
          all or any of its powers and obligations under this Agreement,
          provided that (but subject to Clause 3.2(b) herein):

          (i)  the prior written consent of the Mortgages Trustee and Funding
               to the proposed arrangement (including, if Funding considers it
               necessary after consulting with the Security Trustee, approving
               any contract which sets out the terms on which such
               arrangements are to be made) has been obtained, the Security
               Trustee has been consulted and notification has been given to
               each of the Rating Agencies;

          (ii) where the arrangements involve the custody or control of any
               Mortgage Loan Files and/or Title Deeds relating to the Mortgage
               Portfolio for the purpose of performing any delegated Services,
               the sub-contractor or delegate has executed an acknowledgement
               in writing acceptable to Funding and the Security Trustee to
               the effect that any such Mortgage Loan Files and/or Title Deeds
               are and will be held to the order of the Mortgages Trustee (as
               trustee for the Beneficiaries);

         (iii) where the arrangements involve or may involve the receipt by
               the sub-contractor or delegate of monies belonging to the
               Beneficiaries which, in accordance with this Agreement, are to
               be paid into the relevant Collection Account, the
               sub-contractor or delegate has executed a declaration in
               writing acceptable to the Beneficiaries that any such monies
               held by it or to its order are held on trust for the
               Beneficiaries and will be paid forthwith into the relevant
               Collection Account in accordance with the terms of the
               Mortgages Trust Deed;

          (iv) any such sub-contractor or delegate has executed a written
               waiver of any Security Interest arising in connection with such
               delegated Services (to the extent that such Security Interest
               relates to the Mortgage Portfolio or any amount referred to in
               (iii) above); and

                                      3
<PAGE>

          (v)  neither the Mortgages Trustee, the Security Trustee nor the
               Beneficiaries shall have any liability for any costs, charges
               or expenses payable to or incurred by such sub-contractor or
               delegate or arising from the entering into, the continuance or
               the termination of any such arrangement.

     (b)  The provisos to Clause 3.2(a) (i), (ii) and (iii) herein shall not
          apply:

          (i)  to the engagement by the Administrator of:

               (1)  any receiver, solicitor, insurance broker, valuer,
                    surveyor, accountant, estate agent, insolvency
                    practitioner, auctioneer, bailiff, debt counsellor,
                    tracing agent, property management agent, licensed or
                    qualified conveyancer or other professional adviser acting
                    as such; or

               (2)  any locksmith, builder or other contractor acting as such
                    in relation to a Mortgaged Property, in any such case
                    being a person or persons whom the Administrator would be
                    willing to appoint in respect of its own mortgages in
                    connection with the performance by the Administrator of
                    any of its obligations or functions or in connection with
                    the exercise of its powers under this Agreement; or

          (ii) to any delegation to any wholly-owned subsidiary of the Seller
               from time to time.

     (c)  The Mortgages Trustee and/or Funding and the Security Trustee may
          require the Administrator to assign to the Mortgages Trustee any
          rights which the Administrator may have against any sub-contractor
          or delegate arising from the performance of services by such person
          in association with any matter contemplated by this Agreement and
          the Administrator acknowledges that such rights assigned to the
          Mortgages Trustee will be exercised by the Mortgages Trustee as
          trustee for the Beneficiaries subject to the terms of the Mortgages
          Trust Deed.

     (d)  Notwithstanding any sub-contracting or delegation of the performance
          of the Administrator's obligations under this Agreement:

          (i)  the Administrator shall not thereby be released or discharged
               from any liability hereunder;

          (ii) the Administrator shall remain responsible for the performance
               of the obligations of the Administrator under this Agreement;

          (iii) the performance or non-performance or the manner of
               performance of any sub-contractor or delegate of any of the
               Services shall not affect the Administrator's obligations under
               this Agreement;

          (iv) any breach in the performance of the Services by any
               sub-contractor or delegate shall, subject to the Administrator
               being entitled for a period of twenty (20) Business Days from
               receipt of notice of the breach to

                                      4
<PAGE>

               remedy such breach by any sub-contractor or delegate, be
               treated as a breach of this Agreement by the Administrator; and

          (v)  the Security Trustee shall have no liability for any act or
               omission of the sub-contractor or delegate and shall have no
               responsibility for monitoring or investigating the suitability
               of any such sub-contractor or delegate.

3.3  Notices etc.

     (a)  Within fifteen (15) days after the Initial Closing Date, the
          Administrator will:

          (i)  on behalf of the Mortgages Trustee (at the direction of the
               Beneficiaries or with their consent), give to third parties
               such notices as any of the Beneficiaries are required to give
               pursuant to the Mortgage Sale Agreement; and

          (ii) submit for registration at the Companies Registry a duly
               completed Form 395 and original executed copy of the First
               Issuer Deed of Charge pursuant to Chapter 1 of Part XII of the
               Companies Act 1985,

          and in each case, the Administrator shall take all reasonable steps
          to ensure the return by the relevant recipient of the duplicate
          notices of assignment by way of acknowledgement thereof.

     (b)  Promptly upon request by Funding and the Security Trustee, the
          Administrator shall procure that any notices permitted to be given
          by the Mortgages Trustee under Clause 6.4 (Prior to Perfection) of
          the Mortgage Sale Agreement are so given by the Administrator on the
          Mortgages Trustee's behalf.

3.4  Liability of Administrator:

     (a)  The Administrator shall indemnify each of the Mortgages Trustee and
          the Beneficiaries on demand on an after-tax basis for any loss,
          liability, claim, expense or damage suffered or incurred by either
          of them in respect of the negligence or wilful default of the
          Administrator in carrying out its functions as Administrator under
          this Agreement or the other Transaction Documents or as a result of
          a breach by the Administrator of the terms and provisions of this
          Agreement or the other Transaction Documents in relation to such
          functions.

     (b)  For the avoidance of doubt, the Administrator shall not be liable in
          respect of any loss, liability, claim, expense or damage suffered or
          incurred by the Mortgages Trustee and/or the Beneficiaries and/or
          any other person as a result of the proper performance of the
          Services by the Administrator save where such loss, liability,
          claim, expense or damage is suffered or incurred as a result of any
          negligence or wilful default of the Administrator or as a result of
          a breach by the Administrator of the terms and provisions of this
          Agreement or the other Transaction Documents in relation to such
          functions.

     (c)  Any indemnification under this Clause 3.4 in respect of loss
          suffered by the Beneficiaries shall be paid for by reducing the
          Seller Share of the Trust Property by an amount equal to the
          relevant loss incurred by the Beneficiaries

                                      5
<PAGE>

          in accordance with Clause 8.5 (Adjustments to Trust Property) of the
          Mortgages Trust Deed and Schedule 2 to the Cash Management
          Agreement.

3.5  Perfection of Mortgages Trustee's and Beneficiaries' Title to the
     Mortgage Loans

     Subject to Clause 6 of the Mortgage Sale Agreement:

     (a)  upon the receipt by the Seller of a written request from the
          Mortgages Trustee, Funding or the Security Trustee to execute
          transfers and/or assignments pursuant to Clause 6.2 of the Mortgage
          Sale Agreement, the Administrator shall execute or procure the
          execution of such transfers on behalf of the Seller or shall provide
          sufficient information to enable the Mortgages Trustee, Funding or
          the Security Trustee to do so; and

     (b)  upon the Seller being required to do so by the Mortgages Trustee,
          Funding or the Security Trustee pursuant to Clause 6.1 of the
          Mortgage Sale Agreement, the Administrator shall do all or any of
          the acts, matters or things referred to in Clauses 6.2 and 6.3 of
          the Mortgage Sale Agreement.

4.   Interest Rates

4.1  Determination of Interest Rates: Subject to the provisions of applicable
     law and regulations and any regulatory undertakings binding on the
     Administrator or the Issuer from time to time and subject to the
     following provisions of this Clause 4, the Mortgages Trustee and each of
     the Beneficiaries each hereby grants the Administrator full right,
     liberty and authority from time to time to determine:

     (a)  in accordance with the applicable Mortgage Conditions, Mortgage
          Terms and the Base Rate Pledge, the Standard Variable Rate and any
          other discretionary rates and margins applicable to the Mortgage
          Loans chargeable to Borrowers from time to time; and

     (b)  the Existing Borrowers' Re-Fix Rate in accordance with Clause 4.4
          herein.

     In exercising such right, liberty and authority the Administrator
     undertakes to each of the other parties to this Agreement that it shall
     not at any time set or maintain the Standard Variable Rate and any other
     discretionary rates and margins applicable to the Mortgage Loans at rates
     which are higher than the then prevailing equivalent rates offered by the
     Seller, unless the Administrator is required to do so pursuant to Clause
     4.3 herein, and, subject to that requirement, that it shall not change
     the Standard Variable Rate and any other discretionary rates and margins
     applicable to the Mortgage Loans save for the same reasons as the Seller
     was entitled, under the Mortgage Conditions, to change the then
     prevailing equivalent rates offered by the Seller prior to the sale and
     assignment to the Mortgages Trustee of the Mortgage Loans comprised in
     the Mortgage Portfolio and their Related Security. Each of the Issuer and
     the Security Trustee shall be bound by any Mortgage Rates (including the
     Existing Borrowers' Re-Fix Rate) determined by the Administrator in
     accordance with this Clause 4.

4.2  Notification to Borrowers: The Administrator shall take all steps
     necessary pursuant to the relevant Mortgage Conditions or applicable law
     to bring each change in the

                                      6
<PAGE>

     Standard Variable Rate and any other discretionary rate or margin
     applicable to the Mortgage Loans and any consequent changes in Monthly
     Payments to the attention of the relevant Borrowers and shall, as soon as
     reasonably practicable after any change in such rates, provide details of
     such changes to each of the Mortgages Trustee, the Security Trustee and
     the Beneficiaries, and shall, upon receipt of a request from any of such
     parties, notify such requesting party of any changes in the Monthly
     Payments in relation to the Mortgage Loans.

4.3  Interest Rate Shortfall:

     (a)  On each Payment Date the Administrator shall determine, having
          regard to:

          (i)  the income which Funding would expect to receive during the
               next succeeding Interest Period;

          (ii) the Mortgage Rates in respect of the Mortgage Loans which the
               Administrator proposes to set under this Clause 4; and

         (iii) the other resources available to Funding including the Funding
               Reserve Fund and amounts standing to the credit of any Issuer
               Reserve Fund and/or any Issuer Liquidity Reserve Fund,

          whether Funding would receive an amount of income during that
          Interest Period which when aggregated with the funds otherwise
          available to it is less than the amount which is the aggregate of
          (1) the amount of interest which will be payable by Funding in order
          to fund (whether by payment to a swap provider or otherwise) the
          amount of interest payable in respect of the Class A Notes of the
          First Issuer (and the highest ranking class of notes of any New
          Issuer, if any) and all amounts which rank in priority thereto on
          the Payment Date occurring at the end of such Interest Period, and
          (2) all other amounts payable by Funding which rank in priority to
          or pari passu with interest due on the First Issuer Intercompany
          Loan in respect of interest which is payable on the Class A Notes of
          the First Issuer (and any New Intercompany Loan, if any, in respect
          of interest which is payable by any New Issuer on the highest rated
          class of Notes issued by such New Issuer, if any) (the amount (if
          any) by which it is less being the "Interest Rate Shortfall").

     (b)  If the Administrator determines that there will be an Interest Rate
          Shortfall, it will within one (1) London Business Day of such
          determination give written notice thereof to the Mortgages Trustee,
          Funding and the Security Trustee of such Interest Rate Shortfall and
          of the Standard Variable Rate and other discretionary rates and
          margins applicable to the Mortgage Loans which would, in the
          Administrator's opinion, need to be set in order for no Interest
          Rate Shortfall to arise, having regard to the obligations of Funding
          under all Intercompany Loans.

     (c)  If the Mortgages Trustee, Funding and/or the Security Trustee notify
          the Administrator that, having regard to the obligations of Funding,
          the Standard Variable Rate and other discretionary rates and margins
          should be increased (which shall be the same rates as previously
          notified to the Mortgages Trustee, Funding and the Security Trustee
          in accordance with Clause 4.3(b)), the

                                      7
<PAGE>

          Administrator, as agent for and on behalf of the Mortgages Trustee,
          shall take all steps which are necessary, including publishing any
          notice which is required in accordance with the Mortgage Terms, to
          effect such change in the applicable rates on the date(s) specified
          in the notice referred to in Clause 4.3(b) herein.

4.4  Existing Borrowers' Re-Fix Rate:

     (a)  The Administrator shall, in relation to each Fixed Rate Mortgage
          Loan, serve on the Seller as agent for and on behalf of, inter alia,
          the Mortgages Trustee and the Beneficiaries the notice referred to
          in Clause 8.6(a) of the Mortgage Sale Agreement sixty (60) days
          before the expiry of the initial fixed rate period (as defined in
          Clause 8.6(a) of the Mortgage Sale Agreement) applicable to that
          Fixed Rate Mortgage Loan.

     (b)  If Clause 8.6(b) of the Mortgage Sale Agreement applies to any Fixed
          Rate Mortgage Loan, the Administrator shall take all steps which are
          necessary to perform the obligations of the Seller and exercise the
          rights under such Clause.

     (c)  The Administrator shall, whenever Clause 8.6(c) of the Mortgage Sale
          Agreement applies to a Fixed Rate Mortgage Loan, determine (after
          consultation with the Basis Rate Swap Provider, the Currency Swap
          Provider, and any other swap provider the Administrator (acting
          reasonably) determines appropriate) the rate (and terms) upon which
          the Existing Borrowers' Re-Fix Rate should be set having regard to
          the interests of the Basis Rate Swap Provider and the Currency Swap
          Provider (except to the extent that the Administrator believes that
          the interests of either of the Basis Rate Swap Provider or the
          Currency Swap Provider are materially prejudicial to the interests
          of the Noteholders). The Administrator will give written notice of
          such determination within one Business Day thereof to the Mortgages
          Trustee and the Beneficiaries recommending what the Existing
          Borrowers' Re-Fix Rate should be and the terms at which it should be
          offered, having regard to the interests of the Basis Rate Swap
          Provider and the Currency Swap Provider (except to the extent that
          the Administrator believes that the interests of either of the Basis
          Rate Swap Provider or the Currency Swap Provider are materially
          prejudicial to the interests of the Noteholders). The Administrator
          will solicit quotations on rates from each of (i) the Mortgages
          Trustee, (ii) Funding, and (iii) other trustees for re-fixed
          mortgage loans in relation to other outstanding securitisations of
          the Seller (if any), and shall notify the Mortgages Trustee and the
          Beneficiaries as to the higher of (x) any rate provided by any of
          the parties in (i) through (iii) herein and (y) current rates for
          re-fixed mortgage loans (not included in any Mortgage Portfolio) in
          relation to other Mortgage Loans of the Administrator. If the
          Mortgages Trustee agrees in writing with such recommendation, or
          (whether or not it has received the Administrator's recommendation)
          requires alternative rates and/or terms (such agreement or
          requirement being the "EBRR Determination") the Administrator shall
          immediately notify the Seller and the First Issuer (and any New
          Issuer) of the EBRR Determination, and take all steps which are
          necessary to enable the First Issuer (and any New Issuer) to enter
          into the relevant swap agreement either with the Basis Rate Swap
          Provider or the Currency Swap Provider (or other swap provider whose
          appointment would not adversely affect the then

                                      8
<PAGE>

          current ratings of the Notes) at the rate (and on the terms)
          required in accordance with the EBRR Determination (the "Required
          Rate and Terms"). Nothing in this Clause 4.4(c) shall prevent the
          Mortgages Trustee from setting the Existing Borrowers' Re-Fix Rate
          in accordance with its powers under the Mortgage Sale Agreement.

     (d)  If Clause 8.6 of the Mortgage Sale Agreement applies to any Fixed
          Rate Mortgage Loan, and the Seller fails to set the Existing
          Borrowers' Re-Fix Rate immediately upon being required to do so in
          accordance with the Required Rate and Terms or otherwise to perform
          its obligations under Clause 8.6(c) of the Mortgage Sale Agreement,
          the Administrator as attorney for the Mortgages Trustee and the
          Beneficiaries shall set the Existing Borrowers' Re-Fix Rate on the
          Required Rate and Terms.

4.5  Termination of Authority: The Mortgages Trustee and/or Funding and the
     Security Trustee may terminate the authority of the Administrator under
     Clauses 4.1 and 4.3 herein to determine either of the Mortgage Rate(s) or
     Existing Borrowers' Re-Fix Rate on or after the occurrence of a
     Termination Event pursuant to Clause 19 herein, in which case the
     Mortgages Trustee shall set the Mortgage Rate(s) or Existing Borrowers'
     Re-Fix Rate, as applicable, in accordance with this Clause 4.

5.   Administration of Mortgages

5.1  Collection of Payments:

     (a)  For the purposes of collecting amounts due from any Borrower under a
          Mortgage Loan, where such Borrower makes a Monthly Payment by way of
          Direct Debit the Administrator will, unless otherwise agreed in
          writing with the Beneficiaries:

          (i)  act as collecting agent for the Beneficiaries under the Direct
               Debiting Scheme;

          (ii) comply with the obligations on its part set out in the Bank
               Account Agreement including, without limitation, the specific
               provisions relating to the collection of monies set out in
               Clause 4 of the Bank Account Agreement;

         (iii) comply in all material respects with the requirements from
               time to time of the Direct Debiting Scheme; and;

          (iv) using its reasonable endeavours, credit any Monthly Payment
               made by a Borrower by way of Direct Debit to the relevant
               Collection Account within one (1) London Business Day of
               receipt (and in any event within three (3) London Business Days
               of such receipt) into the relevant Collection Account.

     (b)  The Administrator may agree with a Borrower that the Direct Debiting
          Scheme shall not apply to Monthly Payments to be made by such
          Borrower, provided that (i) alternative payment arrangements are
          made which are intended to ensure the timely making of Monthly
          Payments due from the

                                      9
<PAGE>

          Borrower to the Mortgages Trustee, and (ii) the change in
          arrangements was made at the instigation of the Borrower or by the
          Administrator in accordance with the procedures which would be
          adopted by a reasonable and prudent mortgage lender. The
          Administrator shall, using its reasonable endeavours, credit Monthly
          Payments made by a Borrower under an alternative payment arrangement
          as follows to the relevant Collection Account:

          (i)  by standing order, by close of business on the second (2nd)
               London Business Day following the day on which such amount is
               received or credited by the Administrator;

          (ii) by payment of cash, transfer payment from another account of
               the Seller or check where reference to the relevant Borrower is
               provided or payments made by way of paying-in book, by close of
               business on the London Business Day which immediately follows
               the day on which such amount is received or credited by the
               Administrator; and

         (iii) in the case of any payment by check where a reference to the
               relevant Borrower is not provided, by close of business on the
               next London Business Day after notification from the Operating
               Banks of the identity of the Borrower;

     (c)  provided however, that in any event the Administrator shall credit
          Monthly Payments made by a Borrower under an alternative payment
          arrangement within three (3) London Business Days of such receipt.

     (d)  The Administrator may, notwithstanding the proviso to Clause 5.2(b)
          herein, agree such procedures for the payment by a Borrower of (i)
          overdue amounts and (ii) amounts payable on redemption of a Mortgage
          in whole or in part other than through the Direct Debiting Scheme as
          would be agreed by a reasonable and prudent mortgage lender.

     (e)  Where a Borrower permits a Direct Debit to be made to his bank
          account, the Administrator will endeavour to procure that such
          Borrower maintains a valid and effective mandate relating to such
          Direct Debit in relation to each Monthly Payment due from that
          Borrower, provided that in any case where a Borrower will not permit
          a Direct Debit to be made to his bank account the Administrator will
          endeavour to make alternative arrangements acceptable to a
          reasonable and prudent mortgage lender so that such Borrower
          nevertheless pays each Monthly Payment on the due date.

     (f)  In the event that the Bankers Automated Clearing System ceases to
          operate for any reason the Administrator will use reasonable
          endeavours to make alternative arrangements for the use of the
          back-up systems available to each Account Bank.

5.2  Administration and Enforcement of Mortgages:

     (a)  The Mortgages Trustee as trustee for the Beneficiaries hereby
          directs the Administrator to administer the Mortgage Loans comprised
          in the Mortgage

                                      10
<PAGE>

          Portfolio and carry out its specific obligations under this
          Agreement in accordance with the Administration Procedures.

     (b)  The Administrator will, in relation to any default by a Borrower
          under or in connection with a Mortgage Loan or a Mortgage comprised
          in the Mortgage Portfolio, comply with the Enforcement Procedures
          or, to the extent that the Enforcement Procedures are not applicable
          having regard to the nature of the default in question, take such
          action as is not materially prejudicial to the interests of the
          Mortgages Trustee (as trustee for the Beneficiaries) and the
          Beneficiaries under the relevant MIG Policy, provided that:

          (i)  the Administrator shall only become obliged to comply with the
               Enforcement Procedures (to the extent applicable) or to take
               action as aforesaid after it has become aware of the default;

          (ii) it is acknowledged by the Beneficiaries that mortgage lenders
               generally exercise discretion in pursuing their respective
               enforcement procedures and that the Administrator may exercise
               such discretion as would a reasonable and prudent mortgage
               lender in applying the Enforcement Procedures to any particular
               defaulting Borrower or taking action as aforesaid, provided
               that in exercising such discretion the interest of Funding in
               the Mortgage Portfolio is not materially prejudiced; and

         (iii) in any case where any of the Insurance Policies requires exact
               compliance with certain enforcement procedures, the
               Administrator shall procure the prior written consent of the
               relevant insurance company for any deviation by it from such
               enforcement procedures.

5.3  Records: The Administrator shall keep and maintain records in relation to
     the Mortgage Portfolio, on a Mortgage Loan by Mortgage Loan basis, for
     the purposes of identifying amounts paid by each Borrower, any amount due
     from a Borrower and the balance from time to time outstanding on a
     Borrower's account and such other records as would be kept by a
     reasonable and prudent mortgage lender. Subject always to the
     restrictions and conditions set forth in Clause 16, the Administrator
     will provide such information to the Mortgages Trustee and/or Funding
     and/or the Security Trustee at any time upon reasonable notice, subject
     to the Administrator being reasonably capable of providing such
     information without significant additional cost and subject to the
     provisions of the Data Protection Act 1998 and other applicable
     legislation from time to time, and provided that no duty of confidence
     and no industry code of practice will or may be breached thereby.

5.4  Trust:

     (a)  If the Administrator, in carrying out its functions as Administrator
          under this Agreement, receives (including in its capacity as agent
          for the Mortgages Trustee as trustee for the Beneficiaries) any
          money whatsoever arising from the Mortgage Loans and their Related
          Security, which money belongs to the Mortgages Trustee (as trustee
          for the Beneficiaries) and is to be paid to the relevant Collection
          Account pursuant to this Agreement or any of the other Transaction
          Documents or otherwise, it will hold such monies on trust for the

                                      11
<PAGE>

          Mortgages Trustee and shall keep such money separate from all other
          monies held by the Administrator and shall, as soon as reasonably
          practicable and in any event within three (3) London Business Days
          of receipt of the same, pay the monies into the relevant Collection
          Account.

     (b)  All other sums received by the Administrator in respect of the
          Mortgage Loans and their Related Security shall be held by the
          Administrator for itself.

5.5  Together Connections Mortgage Loans and Connections Mortgage Loans:

     (a)  The Seller shall, upon request, use its reasonable endeavours to:

          (i)  provide the Mortgages Trustee, Funding and the Administrator
               with such information (including, but not limited to
               documentary information) in its possession; and

          (ii) do such other acts and things,

          that the Mortgages Trustee, Funding and the Administrator may
          require in order for such parties to exercise their rights and
          comply with their obligations under the Together Connections
          Mortgage Loans and the Connections Mortgage Loans and under the
          Transaction Documents with respect to the administration of such
          Mortgage Loans.

     (b)  Each of the Mortgages Trustee, Funding and the Administrator shall,
          upon request, use their reasonable endeavours to:

          (i)  provide the Seller with such information (including, but not
               limited to documentary information) in its possession; and

          (ii) do such other acts and things,

          that the Seller may require in order for the Seller to, exercise its
          rights and comply with its obligations under the Together Connection
          Conditions and the Connection Conditions (where such rights and
          obligations are not required to be administered by the Mortgages
          Trustee, Funding or the Administrator under the Transaction
          Documents) and in respect of the products linked to the Together
          Connections Mortgage Loans and Connections Mortgage Loans.

     (c)  Any notice, letter or other communication:

          (i)  received or given by the Seller under the Together Connection
               Conditions or the Connection Conditions shall be copied by the
               Seller to the Administrator; and

          (ii) received or given by the Mortgages Trustee, Funding or the
               Administrator under the Together Connection Conditions or the
               Connection Conditions shall be copied by such parties to the
               Seller.

     (d)  The Administrator shall act in accordance with the instructions of
          the Seller in any matter where the powers, rights, obligations or
          commercial interests of the Seller under the Together Connection
          Conditions or the Connection

                                      12
<PAGE>

          Conditions or with respect to the products linked to the Together
          Connections Mortgage Loan or the Connections Mortgage Loan may be
          affected in a material manner. Such matters may include, but not
          limited to, the following:

          (i)  any request from a Borrower to amend the allocation of the
               Together Connections Benefit or the Connections Benefit that
               may accrue to such Borrower under the terms of the relevant
               Together Connection Conditions or Connection Conditions;

          (ii) any amendment to the Together Connection Conditions or the
               Connection Conditions;

         (iii) except where the Administrator is required to act in
               accordance with Clause 4.3 (Interest Rate Shortfall), the
               determination or variation of the Connection Interest Rate
               (provided that such rate shall not at any time be set at a rate
               which is higher than the equivalent rate offered by the
               Seller);

          (iv) any change to the availability or amendment to the eligibility
               of any product to be linked to a Together Connections Mortgage
               Loan or a Connections Mortgage Loan; and

          (v)  the termination of the Together Connection Conditions or the
               Connection Conditions.

          In all other cases where the Administrator, on behalf of the other
          parties hereto is required to exercise its judgment or discretion in
          the application of the Together Connection Conditions or the
          Connection Conditions, the Administrator shall undertake the same in
          consultation with the Seller.

     (e)  The Seller shall not have any right to provide instructions to the
          Administrator in respect of any amendment to the Together Connection
          Conditions or Connection Conditions where such amendment will result
          in a Product Switch in respect of the applicable Together
          Connections Mortgage Loans or Connections Mortgage Loans unless the
          Seller has given confirmation in accordance with the terms of the
          Mortgage Sale Agreement that it has elected to repurchase such
          Together Connections Mortgage Loans or Connections Mortgage Loans.

5.6  Statement as to Compliance

     The Administrator shall deliver to the Mortgages Trustee not later than
     30th April in each year (or, in the case of 2004, 30 June) commencing in
     2004, an officers' certificate stating, as to each signatory thereof,
     that (i) a review of the activities of the Administrator during the
     preceding year and of its performance under this Agreement has been made
     under such officers' supervision and (ii) to the best of such officers'
     knowledge, based on such review, the Administrator has fulfilled all of
     its obligations under this Agreement throughout such year, or, if there
     has been a default in the fulfilment of any such obligation, specifying
     each such default known to such officers and the nature and status
     thereof.

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<PAGE>

5.7  Independent Auditors' Annual Servicer Compliance Certificate

     The Administrator shall cause an independent auditor to furnish to the
     Administrator and the Mortgages Trustee not later than 30th April in each
     year (or, in the case of 2004, 30 June) commencing in 2004 a report
     addressed to the Board of Directors of the Administrator, substantially
     to the effect that (a) such firm has examined certain documents and
     records of the Administrator relating to the servicing of residential
     Mortgage Loans under this Agreement during the preceding calendar year,
     (b) such examination (i) included such tests and auditing procedures as
     such firm considered necessary in the circumstances, and (ii) was
     conducted in compliance with the attestation standards of the American
     Institute of Certified Public Accountants, (c) management of the
     Administrator has asserted to such firm that the Administrator has
     complied with the minimum servicing standards set out in Schedule 5 and
     (d) in the opinion of such firm, such assertion of the Administrator's
     management is fairly stated in all material respects (or, if such
     assertion of the Administrator's management is not correct, stating why
     such assertion is not correct).

6.   No Liability

6.1  No Guarantee of Mortgage Loan: The Administrator shall have no liability
     for any obligation of a Borrower under any Mortgage Loan comprised in the
     Mortgage Portfolio or any Related Security and nothing herein shall
     constitute a guarantee, or similar obligation, by the Administrator of
     any Mortgage Loan, Mortgage or any Borrower.

6.2  No Guarantee to Mortgages Trustee or Beneficiaries: Save as otherwise
     provided in this Agreement, the Administrator shall have no liability for
     the obligations of the Mortgages Trustee or the Beneficiaries under any
     of the Transaction Documents or otherwise and nothing herein shall
     constitute a guarantee, or similar obligation, by the Administrator of
     the Mortgages Trustee or the Beneficiaries in respect of any of them.

7.   New Mortgage Loans

7.1  New Mortgage Portfolio: The Mortgage Portfolio may be augmented from time
     to time by the sale and assignment to the Mortgages Trustee on any
     Distribution Date of a New Mortgage Portfolio by the Seller.

7.2  Sale and Assignment subject to Terms: The sale and assignment of each New
     Mortgage Portfolio to the Mortgages Trustee will in all cases be subject
     to the terms set out in the Mortgage Sale Agreement including, without
     limitation, the conditions set out in Clause 4 of the Mortgage Sale
     Agreement and the representations and warranties set out in Clause 8 of
     the Mortgage Sale Agreement.

8.   Product Switching and Further Advances

8.1  Acceptance of Application: The Administrator shall not accept an
     application for a Further Advance or a Product Switch without first
     having received confirmation in writing from the Seller that the Seller
     would, if invited to do so by the Mortgages Trustee, purchase the
     relevant Mortgage Loan and its Related Security from the Mortgages
     Trustee.

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<PAGE>

8.2  Notification: Subject to complying with the terms of Clause 8.1 herein,
     where the Administrator accepts a Product Switch or a Further Advance,
     the Administrator shall then promptly notify the Seller and the Mortgages
     Trustee in writing.

8.3  Existing Borrowers Re-Fix Rate: Notwithstanding Clause 8.1 herein,
     whenever Clause 8.6 of the Mortgage Sale Agreement applies to a Fixed
     Rate Mortgage Loan, the Administrator may accept an application from a
     Borrower to set the Existing Borrowers' Re-Fix Rate, subject to the terms
     of Clause 4.4 herein.

8.4  Procedures: Subject to complying with the terms of Clauses 8.1 and 8.3
     herein, the Administrator may accept requests from Borrowers for Product
     Switches and Further Advances provided that the Administrator acts in
     accordance with its then procedure which would be acceptable to a
     reasonable and prudent mortgage lender.

9.   Redemption of Mortgages

9.1  Receipt or Discharge: Upon repayment in full of all sums secured by a
     Mortgage and/or other Related Security comprised in the Mortgage
     Portfolio, the Administrator shall, and is hereby authorised by the
     Mortgages Trustee as trustee for the Beneficiaries to, execute a receipt
     or discharge or relevant Form DS1 (of the H.M. Land Registry) of the
     Mortgage and any such other or further instrument or deed of satisfaction
     regarding such Mortgage and/or the Related Security as it considers to be
     necessary or advisable and to release the relevant Title Deeds to the
     person or persons entitled thereto.

9.2  Title Deeds: The Administrator undertakes that prior to any actual
     release by it of any relevant Title Deeds it will take reasonable and
     appropriate steps to satisfy itself that the relevant Title Deeds are
     being released to the person or persons entitled thereto.

9.3  Payment of Sums Due: The Administrator shall procure that if, upon
     completion of the Enforcement Procedures, an amount in excess of all sums
     due from the relevant Borrower is recovered or received, the balance,
     after discharge of all sums due from the Borrower, is paid to the person
     or persons next entitled thereto.

10.  Powers of Attorney

10.1 Appointment: The Mortgages Trustee hereby appoints the Administrator as
     its attorney on its behalf, and in its own or the attorney's name, for
     the following purposes:

     (a)  executing all documents necessary for the purpose of discharging a
          Mortgage comprised in the Mortgage Portfolio which has been repaid
          in full and any Related Security or for the sale of a Mortgaged
          Property as Mortgagee;

     (b)  executing all documents necessary for the purpose of releasing a
          Borrower in accordance with Clause 9 herein (Redemption of
          Mortgages);

     (c)  executing all documents and doing all acts and things which in the
          reasonable opinion of the Administrator are necessary or desirable
          for the efficient provision of the Services hereunder; and

     (d)  exercising its rights, powers and discretion under the Mortgages
          including the right to fix the rate of interest payable under the
          Mortgage Loans or any

                                      15
<PAGE>

          related rights (but subject, in relation to the right to set the
          interest rate under the Base Rate Pledge and the Existing Borrowers'
          Re-Fix Rate, to the limitations, conditions and qualifications set
          out in the Mortgage Sale Agreement and the powers of attorney
          executed pursuant to it),

     provided that, for the avoidance of doubt, these Powers of Attorney shall
     not authorise the Administrator to sell any of the Mortgage Loans and/or
     their Related Security comprised in the Mortgage Portfolio except as
     specifically authorised in the Transaction Documents. For the avoidance
     of doubt, neither the Mortgages Trustee nor Funding shall be liable or
     responsible for the acts of the Administrator or any failure by the
     Administrator to act under or in respect of these Powers of Attorney.

10.2 Appointments Irrevocable: The appointments contained in Clause 10.1
     herein shall be irrevocable unless and until following a Termination
     Event pursuant to Clause 19 herein (Termination) the Mortgages Trustee
     and/or Funding and the Security Trustee serves notice pursuant to Clause
     19 herein (Termination) to terminate the Administrator's appointment
     under this Agreement upon which the appointments contained in Clause 10.1
     herein shall be automatically revoked.

11.  Costs and Expenses

     The Mortgages Trustee will on each Distribution Date reimburse, in
     accordance with Clause 10.2(b) of the Mortgages Trust Deed, the
     Administrator for all out-of-pocket costs, expenses and charges
     (inclusive of any amounts in respect of Irrecoverable VAT due thereon)
     properly incurred by the Administrator in the performance of the Services
     including any such costs, expenses or charges not reimbursed to the
     Administrator on any previous Distribution Date and the Administrator
     shall supply the Mortgages Trustee with an appropriate VAT invoice issued
     by the person making the supply.

12.  Information

12.1 Maintenance of Records:

     (a)  The Administrator shall keep the Mortgage Loan Files relating to the
          Mortgage Portfolio in safe custody and shall take appropriate
          technical and organisational measures against the unauthorised or
          unlawful processing of personal data and against accidental loss or
          destruction of, or damage to, personal data. The Administrator shall
          maintain in an adequate form such records as are necessary to
          enforce each Mortgage comprised in the Mortgage Portfolio and, where
          relevant, any other Related Security. The Administrator shall keep
          the Mortgage Loan Files in relation to the Mortgage Portfolio in
          such a way that they can be distinguished from information held by
          the Administrator for its own behalf as mortgagee or heritable
          creditor or for other third persons.

     (b)  A duplicate of any computer records held by the Administrator which
          contains information relating to the Mortgage Loans and the Related
          Security shall be lodged by the Administrator on a quarterly basis
          in a location separate from that in which the original computer
          records are stored and in an environment conducive to the safe
          storage of electronic media and which allows the

                                      16
<PAGE>

          information to be stored in an incorruptible form, such records to
          be held to the order of the Mortgages Trustee and to be replaced by
          a revised duplicate as and when the original records are revised.
          The Administrator shall keep the Mortgages Trustee informed of the
          location of the Mortgage Loan Files and duplicate computer records.

12.2 Use of information technology systems:

     (a)  The Administrator will use all reasonable endeavours to negotiate
          with the relevant parties so that any intellectual property rights
          not owned by it but used by it in connection with the performance of
          its obligations under this Agreement and in particular all software
          programmes used in connection with the Mortgage Loans and the
          Related Security therefor and their administration are licensed or
          sub-licensed to the Mortgages Trustee as trustee for the
          Beneficiaries so as to permit the Mortgages Trustee as trustee for
          the Beneficiaries to use such intellectual property rights only in
          connection with the administration of the Mortgage Loans free of
          charge for so long as any of the Mortgage Loans are outstanding. For
          the avoidance of doubt, the Administrator shall not be in breach of
          its obligations under this Agreement if such rights and/or software
          programmes are not so licensed or sub-licensed to the Mortgages
          Trustee as trustee for the Beneficiaries at any time after it has
          ceased to be the Administrator:

     (b)  If this Agreement is terminated, then for a period of six months
          following such termination (or such shorter period as may be
          necessary to allow the administration of the Mortgage Loans to be
          transferred to another person) the Administrator shall use
          reasonable endeavours to assist the Mortgages Trustee and/or the
          Beneficiaries and/or any substitute or successor Administrator to:

          (i)  establish and implement a computer system for administering the
               Mortgage Loans; and

          (ii) load the data held by the Administrator in relation to
               Borrowers and the Mortgage Loans on to such computer system,

          and, prior to (i) and (ii) having taken place, the Administrator
          will provide all necessary access and assistance to the Mortgages
          Trustee and/or the Beneficiaries and/or the substitute Administrator
          in respect of its own intellectual property rights in relation to
          the administration of the Mortgage Loans.

     (c)  Subject always to the restrictions and conditions set forth in
          Clause 16, upon termination of the appointment of the Administrator
          under this Agreement, the Administrator shall forthwith deliver to
          the Mortgages Trustee and/or the Beneficiaries and/or the substitute
          Administrator all computer and data records in its possession or
          under its control relating to the affairs of or belonging to the
          Mortgages Trustee and the Beneficiaries and/or relating to the
          Mortgage Loans and the Related Security in a form agreeable to each
          of the Administrator, the Mortgages Trustee and/or the Beneficiaries
          and/or the substitute Administrator which accords with the standard
          practice of the electronic data processing industry at the time the
          event occurs.

                                      17
<PAGE>

     (d)  The Administrator covenants that it will take no action, nor omit to
          take any action, the effect or likely effect of such action or
          omission will be to terminate any existing licence agreement in
          relation to any such intellectual property rights, provided that a
          licence agreement may be terminated if it is replaced by a
          substitute arrangement under which the intellectual property rights,
          including rights to computer software, are such that the services
          resulting therefrom are equivalent to the previous arrangement.

12.3 Access to Books and Records: Subject to all applicable laws, and subject
     always to the restrictions and conditions set forth in Clause 16, the
     Administrator shall permit the Mortgages Trustee and Funding (and their
     auditors) and the Security Trustee and any other person nominated by the
     Beneficiaries (to whom the Administrator has no reasonable objection)
     upon reasonable notice during normal office hours to have access, or
     procure that such person or persons are granted access, to all books of
     record and account (including, for the avoidance of doubt, the Title
     Deeds and Mortgage Loan Files) relating to the administration of the
     Mortgage Loans and the Related Security comprised in the Mortgage
     Portfolio and related matters in accordance with this Agreement.

12.4 Information Covenants:

     (a)  The Administrator shall, within ten (10) Business Days following
          each Payment Date, provide the Mortgages Trustee, the Beneficiaries,
          the Rating Agencies, the Lead Manager, Bloomberg, L.P. (unless
          otherwise prohibited by law) and any other party as the Mortgages
          Trustee may direct with a report in, or substantially in, the form
          set out in Schedule 2 hereto (or such other form reasonably
          requested by the Mortgages Trustee and approved by the Beneficiaries
          and the Rating Agencies) and shall assist the Cash Manager in the
          production of quarterly reports substantially in the forms set out
          in Schedule 3 of the Cash Management Agreement.

     (b)  The Administrator shall notify the Rating Agencies in writing of the
          details of (i) any material amendment to the Transaction Documents,
          (ii) any proposed material change in the valuation procedures or
          policies applied or to be applied in relation to Mortgaged
          Properties by it in connection with its mortgage business (details
          of which change may be included in a report provided under
          subparagraph (a) above) and (iii) any other information relating to
          its mortgage business and financial condition as the Rating Agencies
          may reasonably request in connection with the ratings of the First
          Issuer Notes and any New Notes and other matters contemplated by the
          Transaction, provided that such request does not adversely interfere
          with the Administrator's day to day provision of the Services under
          the other terms of this Agreement.

     (c)  The Administrator shall, at the request of Funding and the Security
          Trustee (where the Administrator is the Seller) and at the request
          of the Beneficiaries (where the Administrator is no longer the
          Seller), furnish Funding, the Security Trustee and/or the
          Beneficiaries (as appropriate) and the Rating Agencies with such
          other information relating to its business and financial condition
          as it may be reasonable for Funding, the Security Trustee and/or the
          Beneficiaries (as appropriate) to request in connection with the
          ratings of the First Issuer Notes and any New Notes and other
          matters contemplated by the

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<PAGE>

          Transaction, provided that Funding, the Security Trustee or the
          Beneficiaries (as is appropriate) shall not make such a request more
          than once every three months unless, in the belief of Funding, the
          Security Trustee or the Beneficiaries (as appropriate), an
          Intercompany Loan Event of Default or a Termination Event pursuant
          to Clause 19 herein shall have occurred and is continuing or may
          reasonably be expected to occur.

13.  Remuneration

13.1 Administration Fee: The Mortgages Trustee shall pay to the Administrator
     for its Services hereunder an administration fee (the "Administration
     Fee") (inclusive of VAT) which:

     (a)  shall be calculated in relation to each Trust Calculation Period on
          the basis of the number of days elapsed and a 365 day year (or, in
          the case of a Trust Calculation Period ending in a leap year, a 366
          day year) at the Administration Fee Rate, inclusive of VAT, on the
          aggregate amount of the Funding Share of the Trust Property as at
          close of business of such Trust Calculation Period; and

     (b)  shall be paid to the Administrator on each Distribution Date in the
          manner contemplated by and in accordance with the provisions of
          Clause 10 of the Mortgages Trust Deed.

13.2 Substitute or Successor Administrator: If a substitute or successor
     administrator shall be appointed under this Agreement with respect to any
     of the Mortgage Loans, the Mortgages Trustee shall set the Administration
     Fee Rate with such substitute or successor administrator at the time such
     substitute or successor administrator enters into an administration
     agreement.

14.  Insurances

14.1 Administration: The Administrator will administer the arrangements for
     insurance to which the Mortgages Trustee is a party or in which either
     the Seller or the Mortgages Trustee has an interest and which relate to
     the Mortgage Loans and the Mortgages comprised in the Mortgage Portfolio
     or the business of the Mortgages Trustee.

14.2 Action of Administrator: The Administrator shall not knowingly take or
     omit to take any action which would:

     (a)  result in the avoidance or termination of any of the Insurance
          Policies in relation to any Mortgage Loans and Mortgages to which
          any Insurance Policy applies;

     (b)  reduce the amount payable on any claim made on behalf of the
          Mortgages Trustee (as trustee for the Beneficiaries) under any
          Insurance Policy; or

     (c)  invalidate any Insurance Policy.

14.3 Submission of Claims: The Administrator shall prepare and submit any
     claim under the Insurance Policies in accordance with the requirements of
     the relevant Insurance Policy and otherwise with the usual procedures
     undertaken by a reasonable and prudent mortgage lender on behalf of the
     Mortgages Trustee as trustee for the

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<PAGE>

     Beneficiaries and shall comply with the other requirements of the insurer
     under the relevant Insurance Policy.

14.4 Proceeds: The Administrator shall use its reasonable endeavours to credit
     to the relevant Collection Account all proceeds received from any claim
     made under each Insurance Policy in relation to any Mortgage Loan by
     close of business on the London Business Day which immediately follows
     the day on which such amounts are received or credited by the
     Administrator (and in any event within three (3) London Business Days of
     such receipt) and which is applied either in whole or in part in
     repayment of a Mortgage Loan.

14.5 MIG Policies:

     (a)  Without prejudice to Clause 3 herein, the Mortgages Trustee as
          trustee for the Beneficiaries acknowledges that the Administrator
          may settle or compromise claims on a Mortgage Loan by Mortgage Loan
          basis in respect of any MIG Policy in a manner consistent with its
          normal practice in respect of mortgage indemnity polices, provided
          that the Administrator shall not, without the prior written consent
          of the Mortgages Trustee, settle any claims or initiate any legal
          proceedings or other legal process in respect of a group of class of
          mortgages or in respect of the MIG Policies as a whole and provided
          further that each such MIG Policy and all proceeds thereof remains
          subject to the Funding Deed of Charge.

     (b)  If the Enforcement Procedures requires the Administrator to make a
          claim under the relevant MIG Policy and the Administrator has failed
          to make such a claim, then the Beneficiaries may direct the
          Mortgages Trustee on their behalf to direct the Administrator to
          make a claim or, in default thereof by the Administrator, the
          Beneficiaries may direct the Mortgages Trustee to make a claim
          itself under such policy and the Administrator shall, within ten
          (10) London Business Days of receiving a written request from the
          Mortgages Trustee (as trustee for the Beneficiaries), provide the
          Mortgages Trustee with such information as the Mortgages Trustee may
          require to enable it to make a claim under the relevant MIG Policy.

     (c)  Without prejudice to the rights of the Administrator under Clause
          14.5(b) herein, the Administrator shall, in administering the
          Mortgage Loans, ensure that the cover under any MIG Policy relating
          to any Mortgage is not adversely affected.

14.6 Buildings Policies:

(a)  Upon receipt of notice that any Borrower whose Mortgage Loan is secured
     by a mortgage of a leasehold (or, in Scotland, a standard security of a
     long leasehold) Mortgaged Property has failed to make a payment when due
     of any sums due under the relevant lease in respect of the insurance of
     the property, the Administrator may debit such Borrower's account with
     the relevant amount which shall then be paid to the relevant landlord.

(b)  If the Administrator becomes aware that a Borrower has failed to pay
     premiums due under any Buildings Policy, the Administrator shall take
     such

                                      20
<PAGE>

     action as would a reasonable and prudent mortgage lender with a view to
     ensuring that the relevant Mortgaged Property continues to be insured in
     accordance with the applicable Mortgage Terms or the Alternative
     Insurance Requirements.

14.7 Life Policies:

     (a)  The Administrator shall use its reasonable endeavours to ensure that
          upon maturity of a Life Policy or on the death of a Borrower, if
          earlier, all sums which it is agreed between the Seller and the
          relevant Borrower are due to be paid under the Life Policy are paid
          by the relevant insurance company in repayment of the Mortgage for
          which such Life Policy is collateral security and credited to the
          relevant Collection Account.

     (b)  If so requested by a Borrower the Administrator may, on behalf of
          the Beneficiaries, exercise its discretion as a reasonable and
          prudent mortgage lender to agree to the release of a Life Policy
          from the relevant legal or equitable charge granted by the related
          Borrower in favour of the Seller.

15.  Title Deeds

15.1 Custody: The Administrator shall keep the Title Deeds relating to the
     Mortgage Portfolio in safe custody and shall not without the prior
     written consent of the Mortgages Trustee and the Beneficiaries part with
     possession, custody or control of them otherwise than to a sub-contractor
     or delegate appointed pursuant to Clause 3.2 herein (Sub-Contracts) or to
     a solicitor, licensed or qualified conveyancer or authorised
     practitioner, subject to the usual undertaking to hold them to the order
     of the Seller (who in turn will hold them to the order of the Mortgages
     Trustee (as trustee for the Beneficiaries)) or to H.M. Land Registry or
     the Registers of Scotland or, upon redemption of the relevant Mortgage
     Loan, to the order of the Borrower.

15.2 Identification: The Title Deeds relating to the Mortgage Portfolio shall
     be kept in a manner such that a computer record is maintained of their
     location and they are identifiable and retrievable by reference to an
     account number and pool identifier and identifiable and distinguishable
     from the title deeds relating to other properties and mortgages in
     respect of which the Administrator is mortgagee or heritable creditor or
     administrator.

15.3 Access: The Administrator shall provide access, or procure that access is
     provided to, the Title Deeds relating to the Mortgage Portfolio to the
     Mortgages Trustee, the Beneficiaries and their respective agents at all
     reasonable times and upon reasonable notice. The Administrator
     acknowledges that the Title Deeds and Mortgage Loan Files relating to the
     Mortgage Portfolio in its possession, custody or control will be held to
     the order of the Mortgages Trustee (as trustee for the Beneficiaries) and
     that it has, in its capacity as Administrator, no beneficial interest
     therein and the Administrator (in its capacity as such but not in its
     capacity as a Beneficiary) irrevocably waives any rights or any Security
     Interest which it might have therein or to which it might at any time be
     entitled.

15.4 Delivery upon Termination: The Administrator shall, forthwith on the
     termination of the appointment of the Administrator pursuant to Clause 19
     herein (Termination),

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<PAGE>

     deliver the Title Deeds and Mortgage Loan Files to or to the order of the
     Mortgages Trustee or to such person as the Mortgages Trustee elects as a
     substitute administrator in accordance with the terms of this Agreement
     upon written request by the Mortgages Trustee made at any time on or
     after notice of, or on or after, termination of the appointment of the
     Administrator pursuant to Clause 19 herein (Termination).

16.  Data Protection

     The Administrator represents that as at the date hereof the Administrator
     has and hereafter it will maintain on behalf of itself and on behalf of
     the Mortgages Trustee (as trustee for the Beneficiaries) all appropriate
     registrations, licences and authorities (if any) required under the Data
     Protection Act 1998 to enable each of them to perform their respective
     obligations under this Agreement. In addition to the foregoing and
     notwithstanding any of the other provisions of this Agreement, each of
     the Administrator and the Mortgages Trustee hereby agree and covenant as
     follows:

     (a)  that only non-"personal data" (as described in the Data Protection
          Act 1998) may be transferred by the Administrator to the Mortgages
          Trustee or any other entity located in Jersey (unless Jersey is
          declared an "approved state" by the European Commission, in which
          case the Administrator may transfer such personal data to the
          Mortgages Trustee in Jersey);

     (b)  that, to the extent that circumstances enable the Mortgages Trustee
          to exercise its right to demand that the Administrator transfer
          inter alia personal data to the Mortgages Trustee, the Administrator
          shall only transfer such personal data to an agent of the Mortgages
          Trustee that is located in the United Kingdom and maintains all
          appropriate registrations, licences and authorities (if any)
          required under the Data Protection Act 1998 (unless Jersey is
          declared an "approved state" by the European Commission, in which
          case the Administrator may transfer such personal data to the
          Mortgages Trustee in Jersey);

     (c)  that, to the extent that circumstances enable the Mortgages Trustee
          to exercise its right to demand that the Administrator transfer
          inter alia personal data to the Mortgages Trustee, the Administrator
          notify each Borrower that the Mortgages Trustee is a "data
          controller" (as defined in the Data Protection Act 1998) and provide
          each such Borrower with the address of the Mortgages Trustee;

     (d)  that the Administrator and the Mortgages Trustee will only use any
          data in relation to the Mortgage Loans and the related Borrowers for
          the purposes of administering and/or managing the Mortgage
          Portfolio, and will not sell such data to any third party or allow
          any third party to use such data other than in compliance with the
          conditions stated in this Clause 16 and for the sole purpose of
          administering and/or managing the Mortgage Portfolio;

     (e)  that the Mortgages Trustee will comply with the provisions of the
          Data Protection (Jersey) Law 1987 (as amended) and (so long as the
          provisions of the Data Protection Act 1998 do not conflict with the
          provisions of the Data Protection (Jersey) Law 1987) with the
          provisions of the Data Protection Act 1998 (as amended);

                                      22
<PAGE>

     (f)  that, upon the request of a Borrower, the Administrator will inform
          such Borrower that both the Administrator and the Mortgages Trustee
          are "data controllers" as described in the Data Protection Act 1998;
          and

     (g)  that both the Administrator and the Mortgages Trustee shall maintain
          a written record of their reasons for applying the Data Protection
          Order 2000 (as set forth under the Conditions under paragraph 3 of
          Part II of Schedule I of such Order).

17.  Covenants and Representations and Warranties of Administrator

17.1 Covenants: The Administrator hereby covenants with and undertakes to each
     of the Mortgages Trustee, the Beneficiaries and the Security Trustee
     that, without prejudice to any of its specific obligations hereunder, it
     will:

     (a)  administer the Mortgage Loans and their Related Security as if the
          same had not been sold and assigned to the Mortgages Trustee but had
          remained on the books of the Seller;

     (b)  provide the Services in such manner and with the same level of
          skill, care and diligence as would a reasonable and prudent mortgage
          lender;

     (c)  comply with any reasonable directions, orders and instructions which
          the Mortgages Trustee or the Beneficiaries may from time to time
          give to it in accordance with the provisions of this Agreement and,
          in the event of any conflict, those of the Mortgages Trustee shall
          prevail;

     (d)  keep in force all licences, approvals, authorisations and consents
          which may be necessary in connection with the performance of the
          Services and prepare and submit all necessary applications and
          requests for any further approval, authorisation, consent or licence
          required in connection with the performance of the Services and in
          particular any necessary registrations under the Data Protection Act
          1998;

     (e)  not knowingly fail to comply with any legal requirements in the
          performance of the Services;

     (f)  make all payments required to be made by it pursuant to this
          Agreement on the due date for payment thereof in pounds sterling (or
          as otherwise required under the Transaction Documents) in
          immediately available funds for value on such day without set-off
          (including, without limitation, any fees owed to it) or
          counterclaim, but subject to any deductions required by law;

     (g)  not without the prior written consent of the Mortgages Trustee amend
          or terminate any of the Transaction Documents save in accordance
          with their terms;

     (h)  forthwith upon becoming aware of any event which may reasonably give
          rise to an obligation of the Seller to repurchase any Mortgage Loan
          pursuant to Clause 8 of the Mortgage Sale Agreement, notify the
          Mortgages Trustee and the Beneficiaries in writing of such event;

                                      23
<PAGE>

17.2 Covenants to Survive: The covenants of the Administrator in Clause 17.1
     herein shall remain in force until this Agreement is terminated but
     without prejudice to any right or remedy of the Mortgages Trustee and/or
     the Seller and/or Funding arising from breach of any such covenant prior
     to the date of termination of this Agreement.

17.3 Representations and Warranties: The Administrator hereby makes the
     representations and warranties to each of the Mortgages Trustee, Funding
     and the Security Trustee that are specified on Schedule 3 hereto.

18.  Services Non-exclusive

     Nothing in this Agreement shall prevent the Administrator from rendering
     or performing services similar to those provided for in this Agreement to
     or for itself or other persons or from carrying on business similar to or
     in competition with the business of the Mortgages Trustee and the
     Beneficiaries.

19.  Termination

19.1 Termination Event: If any of the following events (each a "Termination
     Event") shall occur:

     (a)  default is made by the Administrator in the payment on the due date
          of any payment due and payable by it under this Agreement and such
          default continues unremedied for a period of five London Business
          Days after the Administrator becoming aware of such default;

     (b)  default is made by the Administrator in the performance or
          observance of any of its other covenants and material obligations
          under this Agreement or any of the other Transaction Documents,
          which , the Security Trustee having been informed thereof as
          specified below in this sub-clause, is materially prejudicial to the
          interests of the holders of the First Issuer Notes and any New Notes
          from time to time and such default continues unremedied for a period
          of twenty (20) days after the Administrator becoming aware of such
          default, provided however that where the relevant default occurs as
          a result of a default by any person to whom the Administrator has
          sub-contracted or delegated part of its obligations hereunder, such
          default shall not constitute a Termination Event if within such
          twenty (20) day period the Administrator replaces the relevant
          sub-contractor or delegate with an entity capable of remedying such
          default or alternatively indemnifies the Mortgages Trustee and the
          Beneficiaries against the consequences of such default;

     (c)  the Administrator at any time fails to obtain the necessary license
          or regulatory approval required by any UK mortgage regulatory regime
          which would be required in order to enable it to continue
          administering the Mortgage Loans; or

     (d)  the Administrator becomes subject to an Insolvency Event,

     then the Mortgages Trustee and/or Funding and the Security Trustee may at
     once or at any time thereafter while such default continues, by notice in
     writing to the Administrator, terminate its appointment as Administrator
     under this Agreement with effect from a date (not earlier than the date
     of the notice) specified in such notice. Upon termination of the
     Administrator, the Security Trustee shall use its reasonable

                                      24
<PAGE>

     endeavours to appoint a substitute Administrator that satisfies the
     conditions set forth in Clause 19.2(c), (d) and (e), provided that in the
     event the Security Trustee has not, having used reasonable endeavours,
     appointed a substitute Administrator, the Security Trustee shall have no
     liability to any person and, notwithstanding any other provision of the
     Transaction Documents, shall not itself be required to perform any duties
     of the Administrator.

19.2 Resignation: The Administrator may resign under this Agreement at any
     time following the expiry of not less than 12 months' notice of
     resignation given by the Administrator to the Mortgages Trustee and the
     Beneficiaries provided that:

     (a)  the Mortgages Trustee and the Beneficiaries consent in writing to
          such termination;

     (b)  a substitute administrator is appointed by the Mortgages Trustee,
          Funding and the Security Trustee (and in the event of failure to
          agree, by the Security Trustee), such appointment to be effective
          not later than the date of such termination (and the Administrator
          shall notify the Rating Agencies in writing of the identity of such
          substitute administrator);

     (c)  if possible, such substitute administrator has experience of
          administering mortgages of residential property in England, Wales
          and Scotland and is approved by the Mortgages Trustee and the
          Beneficiaries;

     (d)  such substitute administrator enters into an agreement on
          substantially the same terms as the relevant provisions of this
          Agreement and the Administrator shall not be released from its
          obligations under the relevant provisions of this Agreement until
          such substitute administrator has entered into such new agreement;
          and

     (e)  the then current ratings (if any) of the First Issuer Notes or any
          New Notes are not adversely affected as a result thereof, unless
          otherwise agreed by an Extraordinary Resolution (as defined in the
          Note Trust Deed) of the holders of the relevant class of Notes.

19.3 Termination of Authority: On and after resignation by, or termination of
     the appointment of, the Administrator under this Agreement pursuant to
     this Clause 19, all authority and power of the Administrator under this
     Agreement shall be terminated and be of no further effect and the
     Administrator shall not thereafter hold itself out in any way as the
     agent of the Mortgages Trustee and/or the Beneficiaries pursuant to this
     Agreement.

19.4 Delivery of Files: Upon resignation by, or termination of the appointment
     of, the Administrator under this Agreement pursuant to this Clause 19,
     the Administrator shall:

     (a)  forthwith deliver to (and in the meantime hold on trust for, and to
          the order of) the Mortgages Trustee or as it shall direct the
          Mortgage Loan Files, the Title Deeds, all books of account, papers,
          records, registers, correspondence and documents in its possession
          or under its control relating to the affairs of, or belonging to,
          the Mortgages Trustee (as trustee for the Beneficiaries) and the

                                      25
<PAGE>

          Mortgages in the Mortgage Portfolio and any other Related Security,
          (if practicable, on the date of receipt) any monies then held by the
          Administrator on behalf of the Mortgages Trustee and any other
          assets of the Mortgages Trustee as trustee for the Beneficiaries;

     (b)  take such further action as the Mortgages Trustee, Funding and the
          Security Trustee may reasonably direct at the expense of the
          Beneficiaries (including in relation to the appointment of a
          substitute administrator) provided that neither the Mortgages
          Trustee nor the Security Trustee shall be required to take or direct
          to be taken such further action unless it has been indemnified to
          its satisfaction;

     (c)  provide all relevant information contained on computer records in
          the form of magnetic tape, together with details of the layout of
          the files encoded on such magnetic tapes; and

     (d)  co-operate and consult with and assist the Mortgages Trustee,
          Funding, the Security Trustee and their nominees (which shall, for
          the avoidance of doubt, include any new administrator appointed by
          any of them) for the purposes of explaining the file layouts and the
          format of the magnetic tapes generally containing such computer
          records on the computer system of the Mortgages Trustee or such
          nominee.

19.5 Notification of Termination Event: The Administrator shall notify the
     Mortgages Trustee, the Security Trustee and the Beneficiaries as soon as
     reasonably practicable but in any event within five (5) days of becoming
     aware of any Termination Event or any event which with the giving of
     notice or lapse of time or certification would constitute the same. Such
     notification shall specify which event in Clause 19 occurred and was the
     cause of such Termination Event (or any event which with the giving of
     notice or lapse of time or certification would constitute a Termination
     Event), a description of the details of such Termination Event, and a
     reference to the provision in this Agreement or the other Transaction
     Documents which the Administrator has breached.

19.6 No Prejudice: Termination of this Agreement or the appointment of the
     Administrator under this Agreement shall be without prejudice to the
     liabilities of the Mortgages Trustee as trustee for the Beneficiaries to
     the Administrator or vice versa incurred before the date of such
     termination. The Administrator shall have no right of set-off or any lien
     in respect of such amounts against amounts held by it on behalf of the
     Mortgages Trustee.

19.7 Automatic Termination: This Agreement shall terminate at such time as the
     Mortgages Trustee has no further interest in any of the Mortgage Loans or
     the Mortgages which have been comprised in the Mortgage Portfolio.

19.8 Further Compensation: Upon resignation by, or termination of the
     appointment of, the Administrator under the provisions of this Clause 19,
     the Administrator shall be entitled to receive all fees and other monies
     accrued up to the date of resignation or termination, as the case may be,
     but shall not be entitled to any other or further compensation. Such
     monies so receivable by the Administrator shall be paid by the Mortgages
     Trustee on the dates on which they would otherwise have fallen due

                                      26
<PAGE>

     hereunder. For the avoidance of doubt, such resignation or termination
     shall not affect the Administrator's rights to receive payment of all
     amounts (if any) due to it from the Mortgages Trustee other than under
     this Agreement.

19.9 Co-operation: Prior to termination of this Agreement, the Administrator,
     the Seller, the Mortgages Trustee and Funding shall co-operate to obtain
     the agreement of the Borrowers to a new bank mandate permitting the
     Mortgages Trustee to operate the Direct Debiting Scheme.

19.10 Survival of Terms: Any provision of this Agreement which is stated to
     continue after termination of the Agreement shall remain in full force
     and effect notwithstanding termination.

19.11 No Supervision: The Security Trustee shall not be obliged to monitor or
     supervise the performance by any substitute Administrator of its duties
     hereunder or in relation to the other Transaction Documents, nor shall
     the Security Trustee be responsible or liable for any act or omission of
     such substitute Administrator or for any loss caused thereby.

20.  Further Assurances

20.1 Co-operation: The parties hereto agree that they will co-operate fully to
     do all such further acts and things and execute any further documents as
     may be necessary or desirable to give full effect to the arrangements
     contemplated by this Agreement.

20.2 Powers of Attorney: Without prejudice to the generality of Clause 20.1
     herein, the Mortgages Trustee as trustee for the Beneficiaries shall upon
     request by the Administrator forthwith give to the Administrator such
     further powers of attorney or other written authorisations, mandates or
     instruments as are necessary to enable the Administrator to perform the
     Services.

20.3 Notice to Rating Agencies: In the event that there is any change in the
     identity of the Mortgages Trustee or an additional Mortgages Trustee is
     appointed, the remaining Mortgages Trustee and/or the retiring Mortgages
     Trustee, as the case may be, shall execute such documents with any other
     parties to this Agreement and take such actions as such new Mortgages
     Trustee may reasonably require for the purposes of vesting in such new
     Mortgages Trustee the rights of the Mortgages Trustee under this
     Agreement and releasing the retiring Mortgages Trustee from further
     obligations thereunder and while any Note remains outstanding shall give
     notice thereof to the Rating Agencies.

20.4 No Obligations: Nothing herein contained shall impose any obligation or
     liability on the Mortgages Trustee to assume or perform any of the
     obligations of the Administrator hereunder or render it liable for any
     breach hereof.

21.  Miscellaneous

21.1 Insufficient Funds: Subject to Clause 21.2 herein, in the event that the
     funds available to the Mortgages Trustee on any Payment Date are not
     sufficient to satisfy in full the aggregate amount payable to the
     Administrator by the Mortgages Trustee on such Payment Date then the
     amount payable to the Administrator on such Payment

                                      27
<PAGE>

     Date shall be reduced by the amount of the shortfall and such shortfall
     shall (subject always to the provisions of this Clause 21) be payable on
     the immediately succeeding Payment Date.

21.2 Reduction of Fees: In the event that:

     (a)  after redemption in full of the Intercompany Loans; or

     (b)  after service of an Intercompany Loan Enforcement Notice and payment
          of all other prior claims,

     the remaining sums available to the Mortgages Trustee or remaining
     proceeds of enforcement are insufficient to satisfy in full the
     outstanding fees or other claims of the Administrator, such fees shall be
     reduced by the amount of the deficiency.

21.3 Set-Off: Each of the Seller and the Administrator agrees that it will
     not:

     (a)  set off or purport to set off any amount which the Mortgages
          Trustee, Funding or each Issuer is or will become obliged to pay to
          it under any of the Transaction Documents against any amount from
          time to time standing to the credit of or to be credited to any
          Collection Account, the Mortgages Trustee Transaction Account, the
          Mortgages Trustee GIC Account, the Funding Transaction Account, the
          Funding GIC Account, any Funding (Issuer) GIC Account, any Issuer
          Transaction Account in any other account prior to transfer to any
          Collection Account, the Mortgages Trustee Transaction Account, the
          Mortgages Trustee GIC Account, the Funding Transaction Account, the
          Funding GIC Account, any Funding (Issuer) GIC Account or any Issuer
          Transaction Account, as appropriate; or

     (b)  make or exercise any claims or demands, any rights of counterclaim
          or any other equities against or withhold payment of any and all
          sums of money which may at any time and from time to time be
          standing to the credit of any Collection Account, the Mortgages
          Trustee Transaction Account, the Mortgages Trustee GIC Account, the
          Funding Transaction Account, the Funding GIC Account, any Funding
          (Issuer) GIC Account or any Issuer Transaction Account.

21.4 No Petition: The Administrator agrees that for so long as any First
     Issuer Notes and New Notes are outstanding it will not petition nor
     commence proceedings for the administration or winding up of the
     Mortgages Trustee or Funding or any Issuer nor participate in any ex
     parte proceedings with regard thereto.

21.5 Limited Recourse: In relation to all sums due and payable by the
     Mortgages Trustee to the Administrator, the Administrator agrees that it
     shall have recourse only to sums paid to or received by (or on behalf of)
     the Mortgages Trustee pursuant to the provisions of the Mortgage Sale
     Agreement, the other Transaction Documents and in relation to the
     Mortgages.

21.6 No Prejudice: For the avoidance of doubt, neither Beneficiary shall be
     liable to pay any amounts due under Clauses 11 or 13 herein without
     prejudice to the obligations of the Mortgages Trustee in respect of such
     amounts.

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<PAGE>

21.7 Termination: Notwithstanding any other provisions of this Agreement, all
     obligations to, and rights of, Funding under or in connection with this
     Agreement (other than its obligations under Clause 22 herein
     (Confidentiality)) shall automatically terminate upon the discharge in
     full of all amounts owing by it under any Intercompany Loan Agreement,
     provided that this shall be without prejudice to any claims in respect of
     such obligations and rights arising on or prior to such date.

22.  Confidentiality

     From the date of this Agreement and notwithstanding its termination, each
     of the Mortgages Trustee and the Beneficiaries shall use its best
     endeavours not to disclose to any person whatsoever any information
     relating to the business, finances or other matters of a confidential
     nature of any other party hereto of which it may by virtue of being party
     to the Transaction Documents have become possessed and shall use all
     reasonable endeavours to prevent any such disclosure as aforesaid,
     provided however that the provisions of this Clause 22 shall not apply:

     (a)  to any information already known to the Mortgages Trustee or the
          Beneficiaries otherwise than as a result of entering into any of the
          Transaction Documents;

     (b)  to any information subsequently received by the Mortgages Trustee or
          the Beneficiaries which it would otherwise be free to disclose;

     (c)  to any information which is or becomes public knowledge otherwise
          than as a result of the conduct of the Mortgages Trustee or the
          Beneficiaries;

     (d)  to any extent that the Mortgages Trustee or the Beneficiaries is
          required to disclose the same pursuant to any Transaction Document,
          pursuant to any law or order of any court or pursuant to any
          direction, request or requirement (whether or not having the force
          of law) of any central bank or any governmental or other authority
          (including, without limitation, any official bank examiners or
          regulators);

     (e)  to the extent that the Mortgages Trustee or the Beneficiaries needs
          to disclose the same for determining the existence of, or declaring,
          an Intercompany Loan Event of Default or a Termination Event, the
          protection or enforcement of any of its rights under any of the
          Transaction Documents or in connection herewith or therewith or for
          the purpose of discharging, in such manner as it thinks fit, its
          duties under or in connection with such agreements in each case to
          such persons as require to be informed of such information for such
          purposes; or

     (f)  in relation to any information disclosed to the professional
          advisers of the Mortgages Trustee or the Beneficiaries or (in
          connection with the review of current ratings of the First Issuer
          Notes or any New Notes or with a prospective rating of any debt to
          be issued by an Issuer) to any credit rating agency or any
          prospective new Administrator or Mortgages Trustee.

                                      29
<PAGE>

23.  No Partnership

     It is hereby acknowledged and agreed by the parties that nothing in this
     Agreement shall be construed as giving rise to any partnership between
     any of the parties.

24.  Assignment

24.1 Consent: The Mortgages Trustee may not assign or transfer any of its
     rights and obligations under this Agreement without the prior written
     consent of each of the Beneficiaries.

24.2 Agreement: The Administrator may not assign or transfer any of its rights
     or obligations under this Agreement (a) without the prior written consent
     of the Mortgages Trustee (as trustee for the Beneficiaries) and each of
     the Beneficiaries and (b) other than to a person who agrees to be bound
     by the provisions contained in Clause 5 of the Funding Deed of Charge as
     if such person had been named as an original party thereto in place of
     Northern Rock but without prejudice to their obligations under such
     Clause.

24.3 Assignment of Rights to Security Trustee: The Administrator acknowledges
     that Funding has assigned its rights under this Agreement to the Security
     Trustee pursuant to the Funding Deed of Charge and acknowledges that
     pursuant to the terms of the Funding Deed of Charge, Funding has, inter
     alia, authorised the Security Trustee, following the Funding Security
     becoming enforceable, to exercise, or refrain from exercising, all of
     Funding's rights, powers, authorities, discretions and remedies under or
     in respect of the Funding Transaction Documents, including this
     Agreement, in such manner as in the Security Trustee's absolute
     discretion it shall think fit.

25.  Security Trustee; Authorised Third Party

25.1 Vesting of Rights: If there is any change in the identity of the security
     trustee in accordance with the Funding Deed of Charge, the Administrator,
     the Seller, Funding and the Mortgages Trustee shall execute such
     documents and take such action as the successor security trustee and the
     outgoing security trustee may reasonably require for the purpose of
     vesting in the successor security trustee the rights and obligations of
     the outgoing security trustee under this Agreement and releasing the
     outgoing security trustee from its future obligations under this
     Agreement.

25.2 No Assumption: It is hereby acknowledged and agreed that by its execution
     of this Agreement the Security Trustee shall not assume or have any of
     the obligations or liabilities of the Administrator, the Seller, Funding
     or the Mortgages Trustee under this Agreement. Furthermore, any liberty
     or power which may be exercised or any determination which may be made
     hereunder by the Security Trustee may be exercised or made in the
     Security Trustee's absolute discretion without any obligation to give
     reasons therefor, but in any event must be exercised or made in
     accordance with the provisions of the Funding Deed of Charge and Schedule
     4 hereto.

25.3 Delegation: The Security Trustee may delegate the performance of all or
     any of its powers and obligations under all or any of the Operating
     Agreements pursuant to the terms of Schedule 4 of this Agreement and
     subject always to the provisions of the Funding Deed of Charge.

                                      30
<PAGE>

26.  New Intercompany Loan Agreements

     If Funding enters into a New Intercompany Loan Agreement, then the
     Administrator, the Seller, Funding, the Security Trustee and the
     Mortgages Trustee shall execute such documents and take such action as
     may be necessary or required by the Rating Agencies for the purpose of
     including the New Issuer, any Basis Rate Swap Provider, any Currency Swap
     Provider, any New Start-up Loan Provider and any other person who has
     executed an Accession Undertaking or any New Intercompany Loan Agreement
     in the Transaction Documents.

27.  Non Petition Covenant; Limited Recourse

27.1 Non Petition Covenant: Each of the parties hereto hereby agrees that it
     shall not institute against either Funding or the Mortgages Trustee any
     winding-up, administration, insolvency or similar proceedings so long as
     any sum is outstanding under any Intercompany Loan Agreement of any
     Issuer or for two years plus one day since the last day on which any such
     sum was outstanding.

27.2 Limited Recourse: Each of the parties hereto agrees that:

     (a)  in relation to the Mortgages Trustee, any amount payable by the
          Mortgages Trustee to any other party to this Agreement under this
          Agreement not being an amount payable out of the Trust Property in
          accordance with the terms of the Mortgages Trust Deed shall only be
          payable to the extent that on that date the Mortgages Trustee has
          sufficient funds to pay such amount out of fees paid to it under the
          Mortgages Trust Deed; and

     (b)  in relation to Funding:

          (i)  only the Security Trustee may enforce the security created in
               favour of the Security Trustee under the Funding Deed of Charge
               in accordance with the provisions thereof;

          (ii) notwithstanding any other provision of this Agreement or any
               other Transaction Document, no sum due or owing to any party to
               this Agreement from or by Funding under this Agreement shall be
               payable by Funding except to the extent that Funding has
               sufficient funds available or (following enforcement of the
               Funding Security) the Security Trustee has realised sufficient
               funds from the Funding Security to pay such sum subject to and
               in accordance with the relevant Funding Priority of Payments
               and provided that all liabilities of Funding required to be
               paid in priority thereto or pari passu therewith pursuant to
               such Funding Priority of Payments have been paid, discharged
               and/or otherwise provided for in full; and

         (iii) it shall not take any steps for the purpose of recovering any
               amount payable by Funding or enforcing any rights arising out
               of this Agreement against Funding otherwise than in accordance
               with the Funding Deed of Charge.

27.3 Corporate Obligations: To the extent permitted by law, no recourse under
     any obligation, covenant, or agreement of any person contained in this
     Agreement shall be

                                      31
<PAGE>

     had against any shareholder, officer or director of such person as such,
     by the enforcement of any assessment or by any legal proceeding, by
     virtue of any statute or otherwise; it being expressly agreed and
     understood that this Agreement is a corporate obligation of each person
     expressed to be a party hereto and no personal liability shall attach to
     or be incurred by the shareholders, officers, agents or directors of such
     person as such, or any of them, under or by reason of any of the
     obligations, covenants or agreements of such person contained in this
     Agreement, or implied therefrom, and that any and all personal liability
     for breaches by such person of any of such obligations, covenants or
     agreements, either under any applicable law or by statute or
     constitution, of every such shareholder, officer, agent or director is
     hereby expressly waived by each person expressed to be a party hereto as
     a condition of and consideration for the execution of this Agreement.

28.  Amendments and Waiver

28.1 Entire Agreement: This Agreement sets out the entire agreement and
     understanding between the parties with respect to the subject matter of
     this Agreement superseding all prior oral or written understandings other
     than the other Transaction Documents.

28.2 Amendments and Waiver: No amendment or waiver of any provision of this
     Agreement nor consent to any departure by any of the parties therefrom
     shall in any event be effective unless the same shall be in writing and
     signed by each of the parties hereto. In the case of a waiver or consent,
     such waiver or consent shall be effective only in the specific instance
     and as against the party or parties giving it for the specific purpose
     for which it is given.

28.3 Rights Cumulative: The respective rights of each of the parties to this
     Agreement are cumulative and may be exercised as often as they consider
     appropriate. No failure on the part of any party to exercise, and no
     delay in exercising, any right hereunder shall operate as a waiver
     thereof, nor shall any single or partial exercise of any such right
     preclude any other or further exercise thereof or the exercise of any
     other right. The remedies in this Agreement are cumulative and not
     exclusive of any remedies provided by law.

28.4 Variation or Waiver: No variation or waiver of this Agreement shall be
     made if the same would adversely affect the then current ratings of` any
     of the Notes.

29.  Notices

     Any notices or other communication or document to be given or delivered
     pursuant to this Agreement to any of the parties hereto shall be
     sufficiently served if sent by prepaid first class post, by hand or by
     facsimile transmission and shall be deemed to be given (in the case of
     facsimile transmission) when despatched or (where delivered by hand) on
     the day of delivery if delivered before 17.00 hours on a London Business
     Day or on the next London Business Day if delivered thereafter or (in the
     case of first class post) when it would be received in the ordinary
     course of the post and shall be sent:

     (a)  in the case of the Administrator and the Seller, to Northern Rock
          PLC, Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
          (facsimile number: 0191 213 2203) for the attention of the Group
          Secretary;

                                      32
<PAGE>

     (b)  in the case of the Mortgages Trustee, to Granite Finance Trustees
          Limited, c/o 22 Grenville Street, St. Helier, Jersey JE4 8PX,
          Channel Islands (facsimile number 01534-609-333) for the attention
          of the Company Secretary;

     (c)  in the case of Funding, to Granite Finance Funding Limited, 69 Park
          Lane, Croydon CR8 1TQ (facsimile number 020 8409 8911) for the
          attention of the Company Secretary;

     (d)  in the case of the Security Trustee, to The Bank of New York (London
          Branch), One Canada Square, 48th Floor, London E14 5AL (facsimile
          number 020-7964-6399) for the attention of Corporate Trust (Global
          Structured Finance);

     (e)  in the case of Fitch, to Fitch Ratings Ltd., at Eldon House, 2 Eldon
          Street, London EC2M 7UA (facsimile number 0207 7417 6262) for the
          attention of European Structured Finance Surveillance;

     (f)  in the case of Moody's, to Moody's Investors Services, Inc., at 1st
          Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB (facsimile
          number 0207 772 5400) for the attention of Jodi van Breda;

     (g)  in the case of S&P, to Standard & Poor's Ratings Services, a
          division of The McGraw-Hill Companies, Inc., at Garden House, 18
          Finsbury Circus, London EC2M 7NJ (facsimile number 0207-826-3598)
          for the attention of Andre Vollmann;

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party
     or by any Rating Agency to the others by written notice in accordance
     with the provisions of this Clause 29. All notices served under this
     Agreement shall be simultaneously copied to the Security Trustee by the
     person serving the same.

30.  Third Party Rights

     A person who is not a party to this Agreement may not enforce any of its
     terms under the Contracts (Rights of Third Parties) Act 1999, but this
     shall not affect any right or remedy of a third party which exists or is
     available apart from that Act.

31.  Execution in Counterparts; Severability

31.1 Counterparts: This Agreement may be executed in any number of
     counterparts (manually or by facsimile) and by different parties hereto
     in separate counterparts, each of which when so executed shall be deemed
     to be an original and all of which when taken together shall constitute
     one and the same instrument.

31.2 Severability: Where any provision in or obligation under this Agreement
     shall be invalid, illegal or unenforceable in any jurisdiction, the
     validity, legality and enforceability of the remaining provisions or
     obligations under this Agreement, or of such provision or obligation in
     any other jurisdiction, shall not be affected or impaired thereby.

                                      33
<PAGE>

32.  Governing Law and Submission to Jurisdiction

32.1 Governing Law: This Agreement is governed by, and shall be construed in
     accordance with, English law.

32.2 Submission to Jurisdiction: Each of the parties hereto irrevocably agrees
     that the courts of England shall have jurisdiction to hear and determine
     any suit, action or proceeding, and to settle any disputes, which may
     arise out of or in connection with this Agreement and, for such purposes,
     irrevocably submits to the jurisdiction of such courts.

33.  Process Agent

     The Mortgages Trustee irrevocably and unconditionally appoints Mourant &
     Co. Capital (SPV) Limited at 4 Royal Mint Court, London, EC3N 4HJ or
     otherwise at its registered office for the time being as its agent for
     service of process in England in respect of any proceedings in respect of
     this Agreement and undertakes that in the event of Mourant & Co. Capital
     (SPV) Limited ceasing so to act it will appoint another person with a
     registered office in London as its agent for service of process.

34.  Appropriate Forum

     Each of the parties hereto irrevocably waives any objection which it
     might now or hereafter have to the courts of England being nominated as
     the forum to hear and determine any Proceedings and to settle any
     disputes, and agrees not to claim that any such court is not a convenient
     or appropriate forum.

IN WITNESS WHEREOF the parties have caused this Agreement to be executed as a
deed the day and year first before written.

                                      34
<PAGE>

                                  SCHEDULE 1

                                 THE SERVICES

In addition to the Services set out in the body of the Administration
Agreement, the Administrator shall:

(a)  keep records (written or computerised) and books of account for the
     Mortgages Trustee in relation to the Mortgage Loans comprised in the
     Mortgage Portfolio;

(b)  keep records for all taxation purposes and VAT;

(c)  notify relevant Borrowers of any change in their Monthly Payments;

(d)  assist the auditors of the Mortgages Trustee and provide information to
     them upon reasonable request;

(e)  provide a redemption statement to a Borrower or any person acting on the
     Borrower's behalf, in each case upon written request or otherwise at the
     discretion of the Administrator;

(f)  notify relevant Borrowers of any other matter or thing which the
     applicable Mortgage Conditions or Offer Conditions require them to be
     notified of in the manner and at the time required by the relevant
     Mortgage Terms;

(g)  subject to the provisions of this Agreement (including without limitation
     Clause 5.2 herein (Administration and Enforcement of Mortgages) take all
     reasonable steps to recover all sums due to the Mortgages Trustee
     including without limitation by the institution of proceedings and/or the
     enforcement of any Mortgage Loan comprised in the Mortgage Portfolio or
     any New Mortgage Portfolio or any Related Security;

(h)  take all other action and do all other things which it would be
     reasonable to expect a reasonable and prudent mortgage lender to do in
     administering its mortgages;

(i)  keep a Mortgage Account for each Mortgage Loan which shall record all
     proceeds received in respect of that Mortgage Loan and all amounts
     debited to such Mortgage Account;

(j)  at its discretion, prepare and send on request an annual statement to
     Borrowers in relation to each calendar year in the agreed form; and

(k)  assist the Cash Manager in the preparation of a quarterly report
     substantially in the form set out in the Cash Management Agreement.

                                      35
<PAGE>

                                  SCHEDULE 2

                      FORM OF INVESTORS' QUARTERLY REPORT

Granite Finance Trustees Limited
Monthly Report

Date of Report [  ]

Mortgages

Number of Mortgages in Pool                                                [  ]

Current Balance                                                       (GBP)[  ]

Opening Trust Assets                                                  (GBP)[  ]

Funding Share                                                         (GBP)[  ]

Funding Share Percentage                                                   [  ]%

Seller Share                                                          (GBP)[  ]

Seller Share Percentage                                                    [  ]%

Minimum Seller Share (Amount)                                         (GBP)[  ]

Minimum Seller Share (% of Total)                                          [  ]%

Arrears Analysis of Non Repossessed Mortgages

                             Number               Principal              Arrears

Less than [  ] month         [  ]                 [  ]                   [  ]

[  ] - [  ] months           [  ]                 [  ]                   [  ]

[  ] - [  ] months           [  ]                 [  ]                   [  ]

[  ] - [  ] months           [  ]                 [  ]                   [  ]

[  ] - [  ] months           [  ]                 [  ]                   [  ]

[  ] months +                [  ]                 [  ]                   [  ]

Total                        [  ]                 [  ]                   [  ]

                                      36
<PAGE>

Properties in Possession     Number               Principal              Arrears

Total                        [  ]                 [  ]                   [  ]

Properties in Possession

Number Brought Forward                                                   [  ]

Repossessed                                                              [  ]

Sold                                                                     [  ]

Number Carried Forward                                                   [  ]

Average Time from                                                        [  ]
Possession to Sale

Average Arrears at Sale                                                  [  ]

Repossessed                                                              [  ]

MIG Claims Submitted                                                     [  ]

MIG Claims Outstanding                                                   [  ]

Average Time from Claim to Payment                                       [  ]

Note: The arrears analysis and repossession information is as at close of
business for the report month

Substitution                                  Number                  Principal

Substituted this period (this month)          [  ]                    [  ]

Substituted to dated (since [  ])             [  ]                    [  ]

CPR Analysis                                  Monthly                 Annualised

Current [  ] Month CPR Rate                   [  ]%                   [  ]%

Previous [  ] Month CPR Rate                  [  ]%                   [  ]%

Weighted Average Seasoning (by value)         [  ]

Average Loan Size                             [  ]

Weighted Average LTV (by value)               [  ]%

                                      37
<PAGE>

Product Breakdown

Fixed Rate                                    [  ]%

Flexible -Together                            [  ]%

LTV Levels Breakdown                          Number                    Value

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ]% +                                       [  ]                      [  ]

Totals                                        [  ]                      [  ]

NR Current Existing Borrowers' SVR                                      [  ]

Effective Date of Change                                                [  ]

                                      38
<PAGE>

<TABLE>
<CAPTION>
                                              Rating
Notes            Outstanding                  Moodys/S&P/Fitch               Reference Rate
<S>              <C>                          <C>                        <C>                 <C>
Series 1

A1               $XXX,XXX,XXX                  Aaa/AAA/AAA                 X.XXX%               X.XX%

A2               $XXX,XXX,XXX                  Aaa/AAA/AAA                 X.XXX%               X.XX%

B                $ XX,XXX,XXX                   Aa3/AA/AA                  X.XXX%               X.XX%

C                $ XX,XXX,XXX                  Baa2/BBB/BBB                X.XXX%               X.XX%

Series 2

A            (GBP)XXX,XXX,XXX                  Aaa/AAA/AAA                 X.XXX%               X.XX%

B            (GBP) XX,XXX,XXX                   Aa3/AA/AA                  X.XXX%               X.XX%

C            (GBP) XX,XXX,XXX                  Baa2/BBB/BBB                X.XXX%               X.XX%

Issuer Reserve Fund Requirement                                                             (GBP)[  ]

Balance brought forward                                                                     (GBP)[  ]

Drawings this period

Reserve Fund Top-up this period*                                                            (GBP)[  ]

Excess Spread                                                                               (GBP)[  ]

Current Balance                                                                             (GBP)[  ]

*Top-ups only occur at the end of each quarter.

Funding Reserve Balance                                                                     (GBP)[  ]

Funding Reserve %                                                                                [  ]%
</TABLE>

                                      39
<PAGE>

                                  SCHEDULE 3

                 ADMINISTRATOR REPRESENTATIONS AND WARRANTIES

The Administrator makes the following representations and warranties to each
of the Mortgages Trustee, Funding and the Security Trustee:

1.   Status: It is a public limited company duly incorporated, validly
     existing and registered under the laws of the jurisdiction in which it is
     incorporated, capable of being sued in its own right and not subject to
     any immunity from any proceedings, and it has the power to own its
     property and assets and to carry on its business as it is being
     conducted.

2.   Powers and authority: It has the power to enter into, perform and
     deliver, and has taken all necessary corporate and other action to
     authorise the execution, delivery and performance by it of each of the
     Transaction Documents to which it is or will be a party, and each such
     Transaction Document has been duly executed and delivered by it.

3.   Legal validity: Each Transaction Document to which it is or will be a
     party constitutes or when executed in accordance with its terms will
     constitute its legal, valid and binding obligation.

4.   Non-conflict: The execution by it of each of the Transaction Documents to
     which it is a party and the exercise by it of its rights and the
     performance of its obligations under such Transaction Documents will not:

     (a)  result in the existence or imposition of, nor oblige it to create,
          any Security Interest in favour of any person over all or any of its
          present or future revenues or assets;

     (b)  conflict with any document which is binding upon it or any of its
          assets;

     (c)  conflict with its constitutional documents; or

     (d)  conflict with any law, regulation or official or judicial order of
          any government, governmental body or court, domestic or foreign,
          having jurisdiction over it.

5.   No litigation: It is not a party to any material litigation, arbitration
     or administrative proceedings and, to its knowledge, no material
     litigation, arbitration or administrative proceedings are pending or
     threatened against it.

6.   Consents and Licences: All governmental consents, licences and other
     approvals and authorisations required in connection with the entry into,
     performance, validity and enforceability of, and the transactions
     contemplated by, the Transaction Documents have been obtained or effected
     (as appropriate) and are in full force and effect.

7.   Solvency: No Insolvency Event has occurred in respect of the
     Administrator, and the Administrator is not insolvent.

                                      40
<PAGE>

8.   Financial Statements: The most recent financial statements of the
     Administrator:

     (a)  were prepared in accordance with accounting principles generally
          accepted in England and Wales consistently applied;

     (b)  disclose all liabilities (contingent or otherwise) and all
          unrealised and or anticipated losses of the Administrator; and

     (c)  save as disclosed therein, give a true and fair view of the
          financial condition and operations of the Administrator during the
          relevant financial year.

9.   No Adverse Change: Since the date as of which the most recent financial
     statements of the Administrator were stated to be prepared, there has
     been:

     (a)  no significant change in the financial position of the
          Administrator; and

     (b)  no material adverse change in the financial position or prospects of
          the Administrator.

10.  Ranking of Claims

     Under the laws of England and Wales in force as at the date of making
     this representation, claims against the Administrator under the
     Transaction Documents will rank at least pari passu with the claims of
     all its other unsecured and unsubordinated creditors, save those whose
     claims are preferred solely by any bankruptcy, liquidation or other
     similar laws of general application.

11.  Information in Prospectus and Offering Circular:

     (a)  All information in the Prospectus and the Offering Circular with
          regard to the Administrator, its business and its experience
          administering mortgage loans (including its arrears and repossession
          experience) are true and accurate in all material respects and not
          misleading in any material respect.

     (b)  Any opinions, predictions and intentions expressed in the Prospectus
          and/or the Offering Circular on the part of the Administrator are
          honestly held and not misleading in any material respect.

     (c)  Each of the Prospectus and the Offering Circular does not omit to
          state any material fact necessary to make such information,
          opinions, predictions or intentions not misleading in any material
          respect.

     (d)  The Administrator has made all proper inquiries to ascertain and to
          verify the foregoing.

                                      41
<PAGE>

                                  SCHEDULE 4

                            AUTHORISED THIRD PARTY

1.   Agreement to Allow Delegation

1.1. The Seller and the Administrator agree (subject to the other provisions
     of this Schedule, including paragraph 2 (Appointment and Payment) and
     subject to the Funding Deed of Charge) that the Security Trustee may
     appoint or facilitate the appointment of an Authorised Third Party to
     implement, administer and carry out the duties and powers of the Security
     Trustee:

     (a)  under the Seller's Power of Attorney;

     (b)  in connection with and following a Completion Event; and

     (c)  in connection with and following a Termination Event,

     (together the "Back-up Functions")

1.2. Each of the Seller and the Administrator shall authorise the Authorised
     Third Party on their behalf and in their name or otherwise to sign or
     execute or make any alteration or addition or deletion in or to any
     agreements or documents or certificates or instructions or notices which
     they are entitled or required to give, receive, implement, transact or
     become a party to in relation to the Back-up Functions or for doing any
     other act or thing required to be done by them under or in connection
     with the Back-up Functions and otherwise generally to sign, seal and
     deliver any agreement, assurance, document, certificate, instruction or
     act which may be required by the Authorised Third Party acting in
     connection with the Back-up Functions.

2.   Appointment and Payment

     The appointment of the Authorised Third Party shall be on the terms and
     conditions as negotiated between the Security Trustee, the Seller and/or
     the Administrator (as the case may be) and such Authorised Third Party.
     The fees, costs and expenses payable to such Authorised Third Party shall
     be considered as part of the additional remuneration and expenses of the
     Security Trustee and therefore shall be payable in the manner
     contemplated by and in accordance with Clause 18 of the Funding Deed of
     Charge from funds that the Security Trustee receives in accordance with
     the Funding Priority of Payments as set forth in the Funding Deed of
     Charge.

3.   Delegation

3.1. The Security Trustee shall use reasonable endeavours (in its opinion) to
     appoint in writing one or more persons to act as an Authorised Third
     Party in respect of the Back-up Functions (on any terms other than the
     power to appoint a delegate), and references in the Operating Agreements
     to the "Security Trustee" shall be construed accordingly and, unless the
     context does not permit, include any Authorised Third Party. Any such
     appointment of an Authorised Third Party may be revoked by the Security
     Trustee at any time.

                                      42
<PAGE>

3.2. In the event that the Security Trustee has not, having used such
     reasonable endeavours, appointed such Authorised Third Party, the
     Security Trustee shall have no liability to any person and,
     notwithstanding any other provision of the Operating Agreements, shall
     not itself be required to perform any Back-up Functions or any other
     duties of the Seller or the Administrator either during the period it is
     seeking to appoint an Authorised Third Party or thereafter.

3.3. As condition precedents to the appointment of the Authorised Third Party,
     the arrangements to be entered into between the Authorised Third Party
     and the Seller or Administrator (as the case may be) shall provide that
     (1) the Authorised Third Party shall make timely transfer of information
     to the Seller or Administrator (as appropriate); and (2) the Security
     Trustee shall provide any Authorised Third Party with a copy of the
     Operating Agreements and the Funding Deed of Charge and shall request
     such Authorised Third Party to confirm in writing to the Seller, the
     Administrator and the Security Trustee that it has read and understood
     the terms of this Agreement and the other Operating Agreements.

4.   Ratification

     Each of the Seller and the Administrator shall, upon the written request
     of the Security Trustee or such Authorised Third Party, ratify and
     confirm all documents, deeds, certificates, instructions, acts and things
     which the Security Trustee or such Authorised Third Party shall execute
     or do in the exercise of any of the powers conferred, or purported to be
     conferred, on him by this Agreement and the other Operating Agreements.
     The terms of appointment of the Authorised Third Party shall oblige the
     Authorised Third Party to provide information concerning its activities
     on a regular basis and on request to the Seller, Administrator, Funding
     and the Security Trustee.

5.   Limitations on the Responsibility of the Security Trustee

     The Security Trustee shall not be obliged to monitor or supervise the
     performance by such Authorised Third Party of its duties hereunder or in
     relation to the Operating Agreements and shall not be responsible or
     liable for any act or omission of such Authorised Third Party or for any
     loss caused thereby, provided that if any party to a Transaction Document
     notifies the Security Trustee that an Authorised Third Party appointed by
     the Security Trustee is implementing, administering or carrying out the
     duties and powers of the Security Trustee in breach of the terms and
     conditions of the relevant Operating Agreement pursuant to which such
     duties and powers are to be performed, the Security Trustee shall use its
     reasonable endeavours to appoint or facilitate the appointment of a
     substitute Authorised Third Party to implement, administer and carry out
     such duties and powers. The terms of appointment of an Authorised Third
     Party and the Security Trustee's responsibilities in relation thereto as
     set out in this Schedule 4 shall apply to the appointment of a substitute
     Authorised Third Party. Nothing in this Schedule constitutes the Security
     Trustee in its role as specified in this schedule as trustee or fiduciary
     for any person. The Security Trustee shall assume, until it receives
     notice thereof pursuant to the relevant Operating Agreement, that no
     Back-up Trigger Event has occurred and until such time that it receives
     such notification and is first indemnified and/or secured to its
     satisfaction, is not entitled to take any action in respect of the
     Back-up Functions under the Operating Agreements.

                                      43
<PAGE>

6.   Exoneration

6.1. Without limiting paragraph 6.2 below, the Security Trustee shall not be
     liable to any Person for any action taken or not taken by the Security
     Trustee or such Authorised Third Party under or in connection with the
     Operating Agreements, other than in respect of any loss, liability,
     claim, expense or damage suffered or incurred by such Person in respect
     of the gross negligence or wilful default of the Security Trustee or such
     Authorised Third Party in carrying out its functions under the relevant
     Operating Agreement.

6.2. No Person may take any proceedings against any officer, employee or agent
     of the Security Trustee in respect of any claim it might have against the
     Security Trustee in respect of any act or omission of any kind by their
     officer, employee or agent.

                                      44
<PAGE>

                                  SCHEDULE 5

                          MINIMUM SERVICING STANDARDS

The following list sets forth (i) certain of the Services provided for in the
body of the Administration Agreement and (ii) certain of the functions
required of the Cash Manager under the terms of the Cash Management Agreement,
which together are known as the "minimum servicing standards" for purposes of
Section 5.7 of the Administration Agreement.

1.   (Maintain records) keep and maintain records in relation to the Mortgage
     Portfolio on a Mortgage Loan by Mortgage Loan basis for the purposes of
     identifying amounts paid by each Borrower, any amount due from a Borrower
     and the balance from time to time outstanding on a Borrower's account
     (5.3).

2.   (Collections) using reasonable endeavours credit all monthly payments
     made by a Borrower to the relevant Collection Account within three (3)
     London Business Days of receipt (5.1).

3.   (Qualifications and compliance of laws) maintain all licences, approvals,
     authorisations and consents necessary in connection with the
     Administrator's performance of its obligations under the Administration
     Agreement and not knowingly to fail to comply with any legal requirements
     in the performance of those obligations. (17.1(d) and (e)).

4.   (Enforcement) in relation to any default by a Borrower under a Mortgage
     Loan or a Mortgage, enforce the terms of such Mortgage Loan or Mortgage
     in accordance with the Enforcement Procedures and as otherwise provided
     in the Administration Agreement (5.2).

5.   (Insurance) (a) administer the arrangements for insurance in which the
     Mortgages Trustee or the Seller has an interest (14.1); (b) not knowingly
     take or omit to take any action that could result in avoidance,
     termination or invalidity of any Insurance Policy in relation to any
     Mortgage Loans and Mortgages or reduce the amount payable on any claim
     made on behalf of the Mortgage Trustees under any Insurance Policy
     (14.2); (c) prepare and submit any claim under the Insurance Policies in
     accordance with their terms (14.3); and (d) use reasonable endeavours to
     credit all proceeds received under any Insurance Policy to the relevant
     Collection Account within three (3) London Business Days of such receipt
     (14.4).

6.   (Determination of interest rates) (a) determine the Standard Variable
     Rate chargeable to Borrowers from time to time and the Existing
     Borrowers' Re-Fix Rate in accordance with section 4.1 of the
     Administration Agreement; and (b) take all steps necessary pursuant to
     the relevant Mortgage Conditions or applicable law to bring such change
     in the Standard Variable Rate to the attention of the relevant borrowers
     and notify details of such change to the Mortgages Trustee, the Security
     Trustee and the Beneficiaries (4.2).

7.   (Provision of information) provide such information from its records in
     relation to the Mortgage Loans to the Mortgages Trustee, Funding or the
     Security Trustee at any

                                      45
<PAGE>

     time upon reasonable notice, subject to the conditions set forth in the
     Administration Agreement (5.3).

8.   (Access to books and records) permit the Mortgages Trustee, Funding (and
     their auditors) and the Security Trustee and any other person nominated
     by the beneficiaries (to whom the Administrator has no reasonable
     objection) upon reasonable notice during normal office hours to have
     access to all books of record and account (including Title Deeds and
     Mortgage Loan Files) relating to the administration of the Mortgage Loans
     and the Related Security, subject to applicable law and the conditions
     set forth in the Administration Agreement (12.3).

9.   (Custody of records) keep the Mortgage Loan Files relating to the
     Mortgage Portfolio in safe custody and shall take appropriate technical
     and organisational measures against the unauthorised or unlawful
     processing of personal data and against accidental loss or destruction
     of, or damage to, personal data. The Administrator shall maintain in an
     adequate form such records as are necessary to enforce each Mortgage
     comprised in the Mortgage Portfolio and, where relevant, any other
     Related Security. The Administrator shall keep the Mortgage Loan Files in
     relation to the Mortgage Portfolio in such a way that they can be
     distinguished from information held by the Administrator for its own
     behalf as mortgagee or heritable creditor or for other third persons
     (12.1(a)).

10.  (Ledgers)

     (a)  establish and maintain memorandum ledgers in the books of the
          Mortgages Trustee to enable the ongoing identification and
          segregation of principal, revenue, and overpayments;

     (b)  on a monthly basis ensure that the memorandum ledgers are reconciled
          to the Mortgages Trustee Bank Accounts;

     (c)  establish and maintain memorandum ledgers in the books of the
          Funding to enable the ongoing identification and segregation of
          principal, revenue, Funding Reserve Amounts and Issuer Reserve
          Amounts;

     (d)  on a monthly basis ensure that the memorandum ledgers are reconciled
          to the Funding Bank Accounts; and

     (e)  establish and maintain ledgers in the books of the Funding and each
          Issuer to record the Initial Intercompany Loans and subsequent
          payments of interest and principal on each of the Intercompany
          Loans.

                                      46
<PAGE>

                                EXECUTION PAGE

as Administrator
EXECUTED for and on behalf of       )
NORTHERN ROCK PLC                   )
by:                                 )

____________________________
Authorised Signatory

Name:

Title:

as Seller
EXECUTED for and on behalf of       )
NORTHERN ROCK PLC                   )
by:                                 )

____________________________
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of       )
GRANITE FINANCE TRUSTEES LIMITED    )
by:                                 )

____________________________
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of       )
GRANITE FINANCE FUNDING LIMITED     )
by:                                 )

____________________________
Authorised Signatory

Name:

Title:

                                      47EXHIBIT 4.1

                               Dated 26 May 2004
                               -----------------

                               NORTHERN ROCK PLC
                                as Cash Manager

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                               NORTHERN ROCK PLC
                                   as Seller

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

------------------------------------------------------------------------------

                           CASH MANAGEMENT AGREEMENT
                            FIFTH DEED OF AMENDMENT

------------------------------------------------------------------------------

                          SIDLEY AUSTIN BROWN & WOOD

                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937

<PAGE>

THIS DEED is made on 26 May 2004

BETWEEN:

(1)    NORTHERN ROCK PLC (registered number 3273685), a public limited company
       incorporated under the laws of England and Wales whose registered
       office is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
       in its capacity as Cash Manager;

(2)    GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
       limited company incorporated under the laws of Jersey, Channel Islands
       whose registered office is at 22 Grenville Street, St. Helier, Jersey
       JE4 8PX, Channel Islands in its capacity as Mortgages Trustee;

(3)    NORTHERN ROCK PLC (registered number 3273685), a public limited company
       incorporated under the laws of England and Wales whose registered
       office is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
       in its capacity as Seller and in its capacity as a Beneficiary;

(4)    GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
       limited company incorporated under the laws of Jersey, Channel Islands
       but acting out of its office established in England (registered
       overseas company number FC022999 and branch number BR005916) at 69 Park
       Lane, Croydon, CR9 1TQ in its capacity as a Beneficiary; and

(5)    THE BANK OF NEW YORK a New York banking corporation whose London branch
       address is at One Canada Square, 48th Floor, London E14 5AL in its
       capacity as Security Trustee.

WHEREAS:

(A)    The Seller carries on the business (inter alia) of originating mortgage
       loans secured on residential properties in England, Wales and Scotland.

(B)    The Seller has sold and assigned to the Mortgage Trustee certain
       mortgage loans, together with the benefit of related security for the
       same, on the terms and subject to the conditions set out in the
       Mortgage Sale Agreement among the parties hereto.

(C)    The Cash Manager has agreed to provide Cash Management Services to the
       Mortgages Trustee, Funding and the Security Trustee on the terms and
       subject to the conditions contained in the Cash Management Agreement
       dated 26 March 2001 (as amended, varied, novated or supplemented from
       time to time, the "Cash Management Agreement").

(D)    The parties have agreed to amend and restate the Cash Management
       Agreement (the "First Amended and Restated Cash Management Agreement")
       pursuant to the provisions set out in a deed of amendment and
       restatement dated 23 July 2001 (the "First Deed of Amendment and
       Restatement").

(E)    The parties have agreed to amend and restate the First Amended and
       Restated Cash Management Agreement (the "Second Amended and Restated
       Cash Management

<PAGE>

       Agreement") pursuant to the provisions set out in a deed of amendment
       and restatement dated 27 January 2003 (the "Second Deed of Amendment
       and Restatement").

(F)    The parties have agreed to amend and restate the Second Amended and
       Restated Cash Management Agreement (the "Third Amended and Restated
       Cash Management Agreement") pursuant to the provisions set out in a
       deed of amendment and restatement dated 24 September 2003 (the "Third
       Deed of Amendment and Restatement").

(G)    The parties have agreed to amend and restate the Third Amended and
       Restated Cash Management Agreement (the "Fourth Amended and Restated
       Cash Management Agreement") pursuant to the provisions set out in a
       deed of amendment and restatement dated 28 January 2004 (the "Fourth
       Deed of Amendment and Restatement").

(H)    The parties now wish to amend and restate the Fourth Amended and
       Restated Cash Management Agreement.

(I)    With effect from the date hereof, the provisions of the Cash Management
       Agreement, the First Amended and Restated Cash Management Agreement,
       the Second Amended and Restated Cash Management Agreement, the Third
       Amended and Restated Cash Management Agreement, the Fourth Amended and
       Restated Cash Management Agreement and this Deed shall be read and
       construed as follows.

NOW IT IS HEREBY AGREED as follows:

1.     INTERPRETATION

1.1    The provisions of the Master Definitions Schedule as amended and
       restated by (and appearing in Appendix 1 to) the Master Definitions
       Schedule Eighth Deed of Amendment made on 26 May 2004 between, among
       others, the parties hereto (as the same have been and may be amended,
       varied or supplemented from time to time with the consent of the
       parties hereto) are expressly and specifically incorporated into and
       shall apply to this Deed.

1.2    The Cash Management Agreement as amended and restated pursuant to the
       First Deed of Amendment and Restatement, the Second Deed of Amendment
       and Restatement, the Third Deed of Amendment and Restatement, the
       Fourth Amended and Restated Cash Management Agreement and pursuant
       hereto shall be referred to herein as the "Amended and Restated Cash
       Management Agreement".

1.3    As used in the Amended and Restated Cash Management Agreement, the
       terms "Cash Management Agreement", "this Cash Management Agreement",
       "Agreement", "this Agreement", "herein", "hereinafter", "hereof",
       "hereto" and other words of similar import shall mean or refer to the
       Amended and Restated Cash Management Agreement, unless the context
       otherwise specifically requires.

                                      2
<PAGE>

2.     AMENDMENTS TO THE FOURTH AMENDED AND RESTATED CASH MANAGEMENT AGREEMENT

           Upon execution of this Deed by the parties hereto, the Fourth
           Amended and Restated Cash Management Agreement shall be and hereby
           is amended and restated in the form of Appendix I hereto.

3.     CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

           No person shall have any right to enforce any provision of this
           Deed or any provision of the Amended and Restated Cash Management
           Agreement under the Contract (Rights of Third Parties) Act 1999.

4.     COUNTERPARTS

           This Deed may be executed in any number of counterparts, and has
           the same effect as if the signatures on the counterparts were on a
           single copy of this Deed.

5.     GOVERNING LAW

5.1    This Deed is governed by, and shall be construed in accordance with,
       English law.

5.2    Each of the parties hereto irrevocably agrees that the courts of
       England shall have jurisdiction to hear and determine any suit, action
       or proceeding, and to settle any disputes, which may arise out of or in
       connection with this Deed and, for such purposes, irrevocably submits
       to the jurisdiction of such courts.

                                      3
<PAGE>

                                EXECUTION PAGE

IN WITNESS WHEREOF this Deed has been executed as a deed by the parties hereto
and entered into the day and year first above written.

as Cash Manager, Seller and Beneficiary
EXECUTED AS A DEED by                        )
                                             )
                                             )
as attorney for                              )
NORTHERN ROCK PLC                            )
in the presence of:

Signature of Witness:

Name of Witness:

Occupation:

Address:

EXECUTED AS A DEED for and on behalf of      )
GRANITE FINANCE TRUSTEES LIMITED             )
by:                                          )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

                                      4
<PAGE>

EXECUTED AS A DEED for and on behalf of      )
GRANITE FINANCE FUNDING LIMITED              )
by:                                          )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

EXECUTED AS A DEED for and on behalf of      )
THE BANK OF NEW YORK                         )
by:                                          )

Authorised Signatory

Name:

Title:

                                      5
<PAGE>

                                  Appendix I

                Amended and Restated Cash Management Agreement

                                      6
<PAGE>

                               Dated 26 May 2004
                               -----------------

                               NORTHERN ROCK PLC
                                as Cash Manager

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                               NORTHERN ROCK PLC
                                   as Seller

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

------------------------------------------------------------------------------

                    FIFTH AMENDED CASH MANAGEMENT AGREEMENT

------------------------------------------------------------------------------

                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937

<PAGE>

                                   CONTENTS

Clause                                                                Page No.

1.   Definitions and Interpretation..........................................5

2.   Appointment of Cash Manager.............................................5

3.   The Services............................................................6

4.   Payments, Accounts, Ledgers.............................................7

5.   Early Repayment Charges................................................14

6.   No Liability...........................................................15

7.   Costs and Expenses.....................................................15

8.   Information............................................................15

9.   Remuneration...........................................................18

10.  Covenants, Representations and Warranties of the Cash Manager..........19

11.  Services Non-Exclusive.................................................20

12.  Termination............................................................20

13.  Further Assurances.....................................................23

14.  Miscellaneous..........................................................23

15.  Confidentiality........................................................24

16.  No Partnership.........................................................25

17.  Assignment.............................................................25

18.  The Security Trustee...................................................25

19.  New Intercompany Loan Agreements.......................................25

20.  Non Petition Covenant; Limited Recourse................................26

21.  Amendments and Waiver..................................................27

22.  Notices................................................................27

23.  Third Party Rights.....................................................28

24.  Execution in Counterparts; Severability................................28

                                      2
<PAGE>

25.  Governing Law and Submission to Jurisdiction...........................29

SCHEDULE 1 The Cash Management Services.....................................30

SCHEDULE 2 Cash Management and Maintenance of Ledgers.......................33

SCHEDULE 3A Form of Mortgages Trustee Quarterly Report......................48

SCHEDULE 3B Form of Funding Quarterly Report................................49

SCHEDULE 4 Cash Manager Representations and Warranties......................52

                                      3
<PAGE>

THIS FIFTH AMENDED AND RESTATED CASH MANAGEMENT AGREEMENT DATED 26 MAY 2004
AMENDS AND RESTATES THE CASH MANAGEMENT AGREEMENT DATED 26 MARCH 2001

BETWEEN:

(1)    NORTHERN ROCK PLC (registered number 3273685), a public limited company
       incorporated under the laws of England and Wales whose registered
       office is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
       in its capacity as Cash Manager;

(2)    GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
       limited company incorporated under the laws of Jersey, Channel Islands
       whose registered office is at 22 Grenville Street, St. Helier, Jersey
       JE4 8PX, Channel Islands in its capacity as Mortgages Trustee;

(3)    NORTHERN ROCK PLC (registered number 3273685), a public limited company
       incorporated under the laws of England and Wales whose registered
       office is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
       in its capacity as Seller and in its capacity as a Beneficiary;

(4)    GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
       limited company incorporated under the laws of Jersey, Channel Islands
       having its principal place of business in the United Kingdom at 69 Park
       Lane, Croydon CR9 1TQ in its capacity as a Beneficiary; and

(5)    THE BANK OF NEW YORK a New York banking corporation whose London branch
       address is at One Canada Square, 48th Floor, London E14 5AL in its
       capacity as Security Trustee.

WHEREAS:

(A)    On the Initial Closing Date the First Issuer will issue the First
       Issuer Notes constituted by the First Issuer Trust Deed. From the
       proceeds of the issue of those First Issuer Notes, the First Issuer
       shall make a loan to Funding pursuant to the terms of the First Issuer
       Intercompany Loan Agreement. From the proceeds of that loan, Funding
       shall pay the Initial Contribution to the Mortgages Trustee as
       consideration in part for the Initial Funding Share of the Trust
       Property, which funds will be used by the Mortgages Trustee to pay to
       the Seller the Initial Purchase Price for the sale and assignment by
       the Seller to the Mortgages Trustee of the Initial Mortgage Portfolio
       pursuant to the Mortgage Sale Agreement.

(B)    The Cash Manager is willing to provide Cash Management Services to the
       Mortgages Trustee, Funding and the Security Trustee on the terms and
       subject to the conditions contained in this Agreement.

                                      4
<PAGE>

IT IS HEREBY AGREED as follows:

1.     Definitions and Interpretation

1.1    The provisions of the Master Definitions Schedule as amended and
       restated by (and appearing in Appendix 1 to) the Master Definitions
       Schedule Eighth Amendment and Restatement Deed made on 26 May 2004
       between, among others, the Seller, Funding and the Mortgages Trustee
       (as the same have been and may be amended, varied or supplemented from
       time to time with the consent of the parties hereto) are expressly and
       specifically incorporated into and shall apply to this Agreement.

1.2    Any reference in this Agreement to any discretion, power or right on
       the part of the Mortgages Trustee shall be as exercised by the
       Mortgages Trustee only as directed by the Beneficiaries but subject in
       each case to the provisions of Clause 17 (Directions from
       Beneficiaries) of the Mortgages Trust Deed.

1.3    During the period 26 May 2004 to the Distribution Date falling in June
       2004 (inclusive), any reference in this Agreement to the Mortgages
       Trustee GIC Account shall be construed as meaning the account in the
       name of the Mortgages Trustee (sort code 30-16-63, account number
       27034016) held at Lloyds TSB Bank plc, Jersey International Branch, 4
       Bond Street, St Helier, Jersey JE4 8ZE, Channel Islands, and after such
       date, the account in the name of the Mortgages Trustee (sort code
       30-00-59, account number 00000000, reference 132200) held at Northern
       Rock plc, Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL.

1.4    During the period 26 May 2004 to the Payment Date falling in July 2004
       (inclusive), any reference in this Agreement to the Funding GIC Account
       shall be construed as meaning the account in the name of Funding (sort
       code 30-15-57, account number 0001933) held at Lloyds TSB Bank plc,
       Treasury Division, 25 Monument Street, London EC3R 8BQ, and after such
       date, the account in the name of Funding (sort code 30-00-59, account
       number 00000000, reference 132161) held at Northern Rock plc, Northern
       Rock House, Gosforth, Newcastle upon Tyne NE3 4PL.

2.     Appointment of Cash Manager

2.1    Appointment: Until termination pursuant to Clause 12 herein
       (Termination), the Mortgages Trustee, Funding and the Security Trustee
       (according to their respective estates and interests) each hereby
       appoints the Cash Manager as its lawful agent to provide the Cash
       Management Services set out in this Agreement, including in relation
       to:

       (a)  the Mortgages Trustee; and

       (b)  Funding,

       and the Cash Manager in each case hereby accepts such appointment on
       the terms and subject to the conditions of this Agreement.

2.2    Duties prescribed by Transaction Documents: For the avoidance of doubt
       and in connection with the powers conferred under Clause 2.1
       (Appointment), save as

                                      5
<PAGE>

       expressly provided elsewhere in this Agreement, nothing herein shall be
       construed so as to give the Cash Manager any powers, rights,
       authorities, directions or obligations other than as specified in this
       Agreement or any of the other Transaction Documents.

2.3    Appointment conditional upon issuance of First Issuer Notes: The
       appointment pursuant to Clause 2.1 (Appointment) is conditional upon
       the issue of the First Issuer Notes and the making of the First Issuer
       Intercompany Loan under the First Issuer Intercompany Loan Agreement
       and shall take effect upon and from the Initial Closing Date
       automatically without any further action on the part of any person,
       PROVIDED THAT, if the issue of the First Issuer Notes by the First
       Issuer has not occurred by 30 April 2001, or such later date as the
       First Issuer and the Lead Manager may agree, this Agreement shall cease
       to be of further effect.

3.     The Services

3.1    General: The Cash Manager shall provide the services set out in this
       Agreement (including, without limitation, Schedules 1 and 2 attached
       hereto) (the "Cash Management Services").

3.2    Approvals and authorisations: The Cash Manager shall maintain, or
       procure the maintenance of, the approvals, authorisations, consents and
       licences required in connection with the respective businesses of the
       Mortgages Trustee and Funding and shall prepare and submit, or procure
       the preparation and submission of, on behalf of the Mortgages Trustee
       and Funding, all necessary applications and requests for any further
       approvals, authorisations, consents or licences which may be required
       in connection with the respective businesses of the Mortgages Trustee
       and Funding and shall, so far as it reasonably can do so, perform the
       Cash Management Services in such a way as not to prejudice the
       continuation of any such approvals, authorisations, consents or
       licences.

3.3    Compliance with Transaction Documents, etc.: The Cash Management
       Services shall include procuring (so far as the Cash Manager, using its
       reasonable endeavours, is able so to do) compliance by the Mortgages
       Trustee and Funding with all applicable legal requirements and with the
       terms of the Transaction Documents to which each of the Mortgages
       Trustee and/or Funding is a party, PROVIDED THAT the Cash Manager shall
       not lend or provide any sum to the Mortgages Trustee or Funding (other
       than as expressly contemplated by the Transaction Documents) and the
       Cash Manager shall have no liability whatsoever to the Mortgages
       Trustee, Funding, the Security Trustee or any other person for any
       failure by the Mortgages Trustee or Funding to make any payment due by
       any of them under any of the Transaction Documents (other than to the
       extent arising from (i) the Cash Manager failing to make a payment in
       its capacity as Administrator, or in any other capacity under the
       Transaction Documents, or (ii) the Cash Manager failing to perform any
       of its obligations under any of the Transaction Documents).

3.4    Liability of Cash Manager:

       (a)  The Cash Manager shall indemnify each of the Mortgages Trustee,
            Funding and the Security Trustee on demand for any loss,
            liability, claim, expense or damage suffered or incurred by any of
            them in respect of the negligence, bad

                                      6
<PAGE>

            faith or wilful default of the Cash Manager in carrying out its
            functions as Cash Manager under this Agreement or under the other
            Transaction Documents or as a result of a breach by the Cash
            Manager of the terms and provisions of this Agreement or such
            other Transaction Documents to which the Cash Manager is a party
            (in its capacity as such) in relation to such functions.

       (b)  For the avoidance of doubt, the Cash Manager shall not be liable
            in respect of any loss, liability, claim, expense or damage
            suffered or incurred by the Mortgages Trustee, Funding, or the
            Security Trustee and/or any other person as a result of the proper
            performance of the Cash Management Services (as defined in Clause
            3.1) by the Cash Manager save to the extent that such loss,
            liability, claim, expense or damage is suffered or incurred as a
            result of any negligence, bad faith or wilful default of the Cash
            Manager under, or as a result of, a breach by the Cash Manager of
            the terms and provisions of this Agreement or any of the other
            Transaction Documents to which the Cash Manager is a party (in its
            capacity as such) in relation to such functions.

4.     Payments, Accounts, Ledgers

4.1    Establishment of Bank Accounts:

       (a)  The Cash Manager hereby confirms that the Mortgages Trustee GIC
            Account has been established on or before the date hereof pursuant
            to the Bank Account Agreement and the Mortgages Trustee Guaranteed
            Investment Contract and that the Mortgages Trustee GIC Account
            Mandate in the agreed form will apply thereto at the Initial
            Closing Date. The Cash Manager undertakes (to the extent to which
            the same is within its control) that at the Initial Closing Date
            the Mortgages Trustee GIC Account will be operative and that the
            Cash Manager will not knowingly create or permit to subsist any
            Security Interest in relation to the Mortgages Trustee GIC Account
            (but without prejudice to the Mortgages Trust and the other
            Transaction Documents).

       (b)  The Cash Manager hereby confirms that the Mortgages Trustee
            Transaction Account has been established on or before the date
            hereof pursuant to the Bank Account Agreement and that the
            Mortgages Trustee Transaction Account Mandate in the agreed form
            will apply thereto at the Initial Closing Date. The Cash Manager
            undertakes (to the extent to which the same is within its control)
            that at the Initial Closing Date the Mortgages Trustee Transaction
            Account will be operative and that the Cash Manager will not
            knowingly create or permit to subsist any Security Interest in
            relation to the Mortgages Trustee Transaction Account (but without
            prejudice to the Mortgages Trust and the other Transaction
            Documents).

       (c)  The Cash Manager hereby confirms that the Funding GIC Account has
            been established on or before the date hereof pursuant to the Bank
            Account Agreement and the Funding Guaranteed Investment Contract
            and that the Funding GIC Account Mandate in the agreed form will
            apply thereto at the Initial Closing Date. The Cash Manager
            undertakes (to the extent to which the same is within its control)
            that at the Initial Closing Date the Funding GIC

                                      7
<PAGE>

            Account will be operative and that the Cash Manager will not
            knowingly create or permit to subsist any Security Interest in
            relation to the Funding GIC Account other than as created under or
            permitted pursuant to the Funding Deed of Charge.

       (d)  The Cash Manager hereby confirms that the Funding Transaction
            Account has been established on or before the date hereof pursuant
            to the Bank Account Agreement and that the Funding Transaction
            Account Mandate in the agreed form will apply thereto at the
            Initial Closing Date. The Cash Manager undertakes (to the extent
            to which the same is within its control) that at the Initial
            Closing Date the Funding Transaction Account will be operative and
            that the Cash Manager will not knowingly create or permit to
            subsist any Security Interest in relation to the Funding
            Transaction Account other than as created under or permitted
            pursuant to the Funding Deed of Charge.

       (e)  The Cash Manager hereby confirms that the Funding (First Issuer)
            GIC Account has been established on or before the date hereof
            pursuant to the Funding (First Issuer) Bank Account Agreement and
            the Funding (First Issuer) Guaranteed Investment Contract and that
            the Funding (First Issuer) GIC Account Mandate in the agreed form
            will apply thereto at the Initial Closing Date. The Cash Manager
            undertakes (to the extent to which the same is within its control)
            that at the Initial Closing Date the Funding (First Issuer) GIC
            Account will be operative and that the Cash Manager will not
            knowingly create or permit to subsist any Security Interest in
            relation to the Funding (First Issuer) GIC Account other than as
            created under or permitted pursuant to the Funding Deed of Charge.

       (f)  Upon Funding entering into any New Intercompany Loan Agreement
            with a New Issuer, the Cash Manager undertakes to establish a
            separate Funding (Issuer) GIC Account in respect of each New
            Issuer to which amounts in respect of any Issuer Reserve Fund and
            Issuer Liquidity Reserve Fund (if any) of such New Issuer will be
            credited.

       (g)  If Funding enters into a New Intercompany Loan Agreement, then the
            Cash Manager, the Seller, Funding, the Security Trustee and the
            Mortgages Trustee shall execute such amendments to this Agreement
            as may be necessary to reflect the establishment of any new
            Funding (Issuer) GIC Account.

4.2    Mortgages Trustee Ledgers:

       (a)  The Cash Manager shall open and maintain in the books of the
            Mortgages Trustee the following ledgers on behalf of the Mortgages
            Trustee:

            (i)    the Principal Ledger, which shall separately reflect all
                   Principal Receipts standing to the credit of each of the
                   Mortgages Trustee GIC Account and the Mortgages Trustee
                   Transaction Account from time to time and distribution of
                   the same to Funding and the Seller;

            (ii)   the Revenue Ledger, which shall separately reflect all
                   Revenue Receipts standing to the credit of each of the
                   Mortgages Trustee GIC

                                      8
<PAGE>

                   Account and the Mortgages Trustee Transaction Account from
                   time to time and distribution of the same to Funding and the
                   Seller;

            (iii)  the Losses Ledger, which shall record Losses on the
                   Mortgage Portfolio;

            (iv)   the Funding Share/Seller Share Ledger which shall record
                   the Funding Share, the Seller Share, the Funding Share
                   Percentage and the Seller Share Percentage of the Trust
                   Property;

            (v)    the Overpayments Ledger, which will reflect each Revenue
                   Receipt and/or Principal Receipt paid by a Borrower in
                   excess of the amount required under the terms of the
                   relevant Mortgage Loan (and in the case of any non-Flexible
                   Mortgage Loan any payment which is not a Capital Payment),
                   which shall be divided into (A) the Non-Flexible
                   Overpayments Sub Ledger to record Overpayments on
                   Non-Flexible Mortgage Loans and (B) the Flexible
                   Overpayments Sub Ledger to record Overpayments on Flexible
                   Mortgage Loans, in each case as received into and paid out
                   of the Mortgages Trustee GIC Account from time to time;

            (vi)   the Non-Flexible Underpayments Ledger, which shall record
                   Underpayments on Non-Flexible Mortgage Loans from time to
                   time;

            (vii)  the Re-Draws Ledger, which will record Re-Draws on the
                   Flexible Mortgage Loans and which shall be divided into (A)
                   the Cash Re-Draws Sub Ledger to record Cash Re-Draws made
                   in respect of Flexible Mortgage Loans and (B) the Non-Cash
                   Re-Draws Sub Ledger to record Non-Cash Re-Draws made in
                   respect of Flexible Mortgage Loans;

            (viii) the Contributions Ledger, which will be divided into sub
                   ledgers to record (i) the making by Funding to the
                   Mortgages Trustee of Contributions to the Mortgages Trust
                   pursuant to the Mortgages Trust Deed (ii) the making by the
                   Seller to the Mortgages Trustee of Contributions to the
                   Mortgages Trust pursuant to the Mortgages Trust Deed and
                   the application of such Contributions in accordance with
                   the terms of the Mortgages Trust Deed by (iii) the payment
                   by the Mortgages Trustee to the Seller of either (a)
                   amounts of Initial Purchase Price for the sale of any New
                   Mortgage Portfolio which is acquired by the Mortgages
                   Trustee from the Seller under the provisions of Mortgage
                   Sale Agreement (b) amounts of Deferred Purchase Price in
                   accordance with the Mortgage Sale Agreement and (iv) the
                   payment by the Mortgages Trustee to the Seller of any
                   Initial Consideration in accordance with the Mortgages
                   Trust Deed; and

            (ix)   the Further Draws Ledger, which will record Further Draws
                   on Personal Secured Loans from time to time.

                                      9
<PAGE>

       (b)  The Cash Manager shall make credits and debits to the Mortgages
            Trustee Ledgers in the manner described in paragraphs 10, 11, 12,
            13, 20, 21 and 22 of Schedule 2 hereto.

4.3    Funding Ledgers:

       (a)  The Cash Manager shall open and maintain in the books of Funding
            the following ledgers on behalf of Funding:

            (i)    the Issuer Reserve Fund Ledger of any Issuer, which shall
                   record the amount credited to the Issuer Reserve Fund of
                   such Issuer on the related Closing Date, and subsequent
                   withdrawals and deposits in respect of such Issuer Reserve
                   Fund;

            (ii)   the Issuer Liquidity Reserve Ledger of any Issuer, if any,
                   which shall record the amount credited to the Issuer
                   Liquidity Reserve Fund from time to time of such Issuer,
                   and subsequent withdrawals and deposits in respect of such
                   Issuer Liquidity Reserve Fund;

            (iii)  the Funding Principal Ledger, which shall separately
                   reflect all Funding Principal Receipts received by Funding
                   on each Distribution Date and all Funding Principal
                   Receipts standing to the credit of each Funding Bank
                   Account, and the following sub-ledgers:

                   (A)  the Group 1 Principal Sub-Ledger which shall record
                        receipts and payments of Funding Principal Receipts
                        allocable to Group 1; and

                   (B)  the Group 2 Principal Sub-Ledger which shall record
                        receipts and payments of Funding Principal Receipts
                        allocable to Group 2;

            (iv)   the Funding Principal Deficiency Ledger, which shall
                   reflect the aggregate position of the Issuer Principal
                   Deficiency Ledgers of all Issuers as to Losses on the
                   Mortgage Loans and the application of Funding Available
                   Principal Receipts to fund Issuer Liquidity Reserve Funds;

            (v)    the Funding Revenue Ledger, which shall separately reflect
                   all Funding Revenue Receipts received by Funding on each
                   Distribution Date and all Funding Revenue Receipts standing
                   to the credit of each Funding Bank Account, and the
                   following sub-ledgers:

                   (A)  the Funding Expense Sub-Ledger which shall record
                        receipts and payments of Funding Revenue Receipts
                        allocable to the payment of expenses;

                   (B)  the Group 1 Revenue Sub-Ledger which shall record
                        receipts and payments of Funding Revenue Receipts
                        allocable to Group 1; and

                                      10
<PAGE>

                   (C)  the Group 2 Revenue Sub-Ledger which shall record
                        receipts and payments of Funding Revenue Receipts
                        allocable to Group 2;

            (vi)   the Funding Reserve Ledger, which shall record the amount
                   credited to the Funding Reserve Fund from time to time, and
                   subsequent withdrawals and deposits in respect of the
                   Funding Reserve Fund; and

            (vii)  the Intercompany Loan Ledger, which shall be divided into
                   segregated sub ledgers each of which shall record payments
                   of interest and fees and repayments of principal made under
                   such Intercompany Loan.

       (b)  The Cash Manager shall make credits and debits to the Funding
            Ledgers in accordance with the provisions of paragraphs 14 through
            19 of Schedule 2 hereto.

4.4    Payments:

(a)    The Cash Manager shall procure that so far as it may be able in
       relation to all Mortgage Loans comprised in the Mortgage Portfolio,
       the following amounts are paid into the Mortgages Trustee Transaction
       Account:

            (i)    all Monthly Payments, other interest received under and in
                   respect of the Mortgage Loans and any costs or other
                   amounts received under the Mortgage Loans (including in any
                   such case amounts recovered on enforcement of rights
                   against any Borrower or guarantor of the Borrower, any
                   Mortgaged Property or any of the Borrower's or guarantor's
                   other property or assets);

            (ii)   all final releases and all repayments or prepayments of
                   principal under the Mortgage Loans;

            (iii)  any amount received by or on behalf of the Mortgages
                   Trustee pursuant to any Insurance Policy; and

            (iv)   any other amounts whatsoever received by or on behalf of
                   the Mortgages Trustee on or after the Initial Closing Date,

       (b)  The Cash Manager shall procure that the following amounts are
            credited to the Mortgages Trustee GIC Account:

            (i)    from time to time upon written or electronic receipt of
                   instructions from the Administrator, all amounts standing
                   to the credit of the Mortgages Trustee Transaction Account;
                   and

            (ii)   all interest earned on any of (A) the Mortgages Trustee
                   Transaction Account, (B) the Mortgages Trustee GIC Account
                   and (C) all investment proceeds from Authorised Investments
                   purchased from amounts standing to the credit of either the
                   Mortgages Trustee Transaction Account or the Mortgages
                   Trustee GIC Account.

                                      11
<PAGE>

       (c)  The Cash Manager shall procure that on each Distribution Date the
            following amounts are paid into the Funding GIC Account:

            (i)    all Funding Principal Receipts, PROVIDED HOWEVER that any
                   amounts recorded as a credit on the Non-Flexible
                   Overpayments Sub Ledger shall remain in the Mortgages
                   Trustee GIC Account on such Distribution Date;

            (ii)   all Funding Revenue Receipts; and

            (iii)  any other amounts whatsoever received by or on behalf of
                   Funding after the Initial Closing Date,

            and the Cash Manager shall procure that all interest earned on the
            Funding GIC Account and the Funding Transaction Account and all
            investment proceeds from Authorised Investments purchased from
            amounts standing to the credit of such accounts are credited to
            the Funding GIC Account.

       (d)  The Cash Manager shall procure that all interest earned on each
            Funding (Issuer) GIC Account and all investment proceeds from
            Authorised Investments purchased from amounts standing to the
            credit of such Funding (Issuer) GIC Account are credited to such
            account.

       (e)  The Cash Manager shall procure that on each Payment Date the
            lesser of (1) the amount standing to the credit of the Funding GIC
            Account and (2) the aggregate of all amounts required to be paid
            by Funding to all Issuers in accordance with the relevant Funding
            Priority of Payments, is credited to the Funding Transaction
            Account in accordance with the provisions of the Funding Deed of
            Charge.

       (f)  The Cash Manager shall procure that all transfers and withdrawals
            of amounts standing to the credit of the Funding Transaction
            Account and the Funding GIC Account shall be made in accordance
            with the provisions of the Funding Deed of Charge.

       (g)  The Cash Manager shall procure that all transfers and withdrawals
            of amounts standing to the credit of each Funding (Issuer) GIC
            Account shall be made in accordance with the provisions of the
            Funding Deed of Charge.

       (h)  Each of the payments into the Mortgages Trustee Transaction
            Account, the Mortgages Trustee GIC Account, the Funding
            Transaction Account, the Funding GIC Account and each Funding
            (Issuer) GIC Account referred to in Clauses 4.4(a) through (g)
            herein shall be made forthwith upon receipt by the Mortgages
            Trustee, Funding or the Cash Manager, as the case may be, of the
            amount in question.

       (i)  For the avoidance of doubt, as soon as reasonably practicable
            after becoming aware of the same, the Cash Manager may, and shall,
            withdraw Cash from, as the case may be, the Mortgages Trustee
            Transaction Account, the Mortgages Trustee GIC Account, the
            Funding Transaction Account, the Funding GIC

                                      12
<PAGE>

            Account or any Funding (Issuer) GIC Account if, and to the extent
            that, such Cash was credited thereto in error and shall use its
            reasonable endeavours to ensure that such Cash is applied
            correctly thereafter.

       (j)  The Cash Manager shall promptly notify each of the Mortgages
            Trustee, Funding and the Security Trustee of any additional
            account which supplements or replaces any account specifically
            referred to in the definitions of the "Mortgages Trustee
            Transaction Account", the "Mortgages Trustee GIC Account", the
            "Funding Transaction Account", the "Funding GIC Account" or any
            "Funding (Issuer) GIC Account" in the Master Definitions Schedule.

       (k)  Each of the Cash Manager, the Mortgages Trustee and Funding
            undertakes that, so far as it is able to procure the same, the
            Mortgages Trustee Transaction Account, the Mortgages Trustee GIC
            Account, the Funding Transaction Account and the Funding GIC
            Account and all instructions and Mandates in relation thereto will
            continue to be operative and will not, save as provided in Clause
            4.6 herein (Cash Management) or as permitted pursuant to the Bank
            Account Agreement, be changed without the prior written consent of
            the Security Trustee (such consent not to be unreasonably withheld
            or delayed). Each of the Cash Manager and Funding undertakes that,
            so far as it is able to procure the same, any Funding (Issuer) GIC
            Account and all instructions and Mandates in relation thereto will
            continue to be operative and will not, save as provided in Clause
            4.6 herein (Cash Management) or as permitted pursuant to the
            related Funding (Issuer) Bank Account Agreement, be changed
            without the prior written consent of the Security Trustee (such
            consent not to be unreasonably withheld or delayed). For the
            avoidance of doubt, the Cash Manager may change the Authorised
            Signatories in respect of any instructions or Mandates relating to
            Funding and/or the Mortgages Trustee, without the prior written
            consent of the Security Trustee, in accordance with Clause 4.2
            (Amendment or Revocation) of the Bank Account Agreement or any
            Funding (Issuer) Bank Account Agreement, as the case may be.

4.5    Withdrawals: The Cash Manager may make withdrawals:

       (a)  on behalf of the Mortgages Trustee from the Mortgages Trustee
            Transaction Account and the Mortgages Trustee GIC Account;

       (b)  on behalf of Funding from the Funding GIC Account, any Funding
            (Issuer) GIC Account and the Funding Transaction Account, but
            only:

            (i)    with the prior consent of the Security Trustee as provided
                   under the Funding Deed of Charge or following receipt of a
                   request for withdrawal in writing from the Cash Manager on
                   behalf of Funding; and

            (ii)   until receipt of an Intercompany Loan Enforcement Notice
                   served by the Security Trustee on Funding (with a copy to
                   the Funding Secured Creditors as soon as reasonable
                   thereafter in accordance with and subject to the Funding
                   Deed of Charge),

                                      13
<PAGE>

       as permitted by this Agreement, the Mortgages Trust Deed, the Bank
       Account Agreement, any Funding (Issuer) Bank Account Agreement, the
       Mortgages Trustee Guaranteed Investment Contract, the Funding
       Guaranteed Investment Contract, any Funding (Issuer) Guaranteed
       Investment Contract and the Funding Deed of Charge, but shall not in
       carrying out its functions as Cash Manager under this Agreement
       otherwise make withdrawals from the Mortgages Trustee Transaction
       Account, the Mortgages Trustee GIC Account or the Funding Bank
       Accounts. Following enforcement of the Funding Security, the Cash
       Manager will not be entitled to make withdrawals from any Funding
       Account other than in accordance with the instructions of the Security
       Trustee.

4.6    Cash Management: In administering the Mortgages Trustee Transaction
       Account, the Mortgages Trustee GIC Account, the Funding Transaction
       Account, the Funding GIC Account and any Funding (Issuer) GIC Account
       on behalf of the Mortgages Trustee, Funding and the Security Trustee,
       as applicable, the Cash Manager shall comply with the provisions of
       Schedule 2 hereto prior to receipt by the Cash Manager of a copy of any
       Intercompany Loan Enforcement Notice served by the Security Trustee on
       Funding.

4.7    Contributions: Following the drawing of any Intercompany Loan by
       Funding from the First Issuer or any New Issuer on any date, the Cash
       Manager shall procure (i) the payment on such date by Funding to the
       Mortgages Trustee of Funding's Contribution to the Mortgages Trustee
       pursuant to the Mortgages Trust Deed and (ii) the application of such
       Contribution by the Mortgages Trustee for payment to the Seller of
       either (a) the amount of Initial Purchase Price for the sale of any New
       Mortgage Portfolio which is acquired by the Mortgages Trustee from the
       Seller on such date under the provisions of Mortgage Sale Agreement or
       (b) the amount of any Initial Consideration made to the Seller as
       Beneficiary under the Mortgages Trust Deed, as applicable.

4.8    Funding Reserve Fund: The Cash Manager, on behalf of Funding, may
       utilise the Funding Reserve Fund to fund initial reserves and other
       expenses in connection with the issuance of any New Notes by any New
       Issuer, to the extent that such initial reserves and expenses are to be
       established, or paid for, by Funding and are not funded pursuant to the
       terms of the Issuer Start Up Loan Agreement applicable to that New
       Issuer.

5.     Early Repayment Charges

       The Cash Manager shall withdraw any Early Repayment Charges paid into
       the Mortgages Trustee Transaction Account or the Mortgages Trustee GIC
       Account and pay the same to the Seller, by telegraphic transfer to such
       account as may be specified by the Seller from time to time, promptly
       following a request for such withdrawal being received from the Seller.
       For the avoidance of doubt, the Cash Manager shall not record the
       receipt or withdrawal of Early Repayment Charges in any of the ledgers
       maintained under this Agreement.

                                      14
<PAGE>

6.     No Liability

       Save as otherwise provided in this Agreement, the Cash Manager shall
       have no liability for the obligations of any of the Mortgages Trustee,
       Funding or the Security Trustee under any of the Transaction Documents
       or otherwise and nothing herein shall constitute a guarantee, or
       similar obligation, by the Cash Manager of any of the Mortgages
       Trustee, Funding or the Security Trustee in respect of any of them.

7.     Costs and Expenses

7.1    Funding and the Mortgages Trustee, proportionately in accordance with
       and subject to the applicable Funding Priority of Payments set out in
       the Funding Deed of Charge or the applicable Priority of Payments for
       the Mortgages Trustee under the Mortgages Trust Deed, as the case may
       be, will on each Payment Date reimburse the Cash Manager for all
       out-of-pocket costs, expenses and charges (together with any amounts in
       respect of Irrecoverable VAT due thereon) properly incurred by the Cash
       Manager in the performance of the Cash Management Services including
       any such costs, expenses or charges not reimbursed to the Cash Manager
       on any previous Payment Date and the Cash Manager shall supply Funding
       and/or the Mortgages Trustee with an appropriate VAT invoice issued by
       the Cash Manager or, if the Cash Manager has treated the relevant cost,
       expense or charge as a disbursement for VAT purposes, by the person
       making the supply.

7.2    Unless and until otherwise agreed by Funding, the Mortgages Trustee and
       the Security Trustee in writing (notified to the Cash Manager), Funding
       and the Mortgages Trustee shall be jointly and severally responsible
       for reimbursing the Cash Manager for the out-of-pocket costs, expenses
       and charges (together with any amounts in respect of Irrecoverable VAT
       due thereon) referred to in Clause 7.1 herein.

8.     Information

8.1    Use of information technology systems:

       (a)  The Cash Manager represents and warrants that at the date hereof
            in respect of the software which is to be used by the Cash Manager
            in providing the Cash Management Services it has in place all
            necessary licences and/or consents from the respective licensor or
            licensors (if any) of such software.

       (b)  The Cash Manager undertakes that it shall for the duration of this
            Agreement, use reasonable endeavours to:

            (i)    ensure that the licences and/or consents referred to in
                   paragraph (a) are maintained in full force and effect; and

            (ii)   except insofar as it would breach any other of its legal
                   obligations, grant to any person to whom it may
                   sub-contract or delegate the performance of all or any of
                   its powers and obligations under this Agreement and/or to
                   such person as the Mortgages Trustee, Funding and the
                   Security Trustee elect as a substitute cash manager in

                                      15
<PAGE>

                   accordance with the terms of this Agreement a licence to
                   use any proprietary software together with any updates
                   which may be made thereto from time to time.

       (c)  The Cash Manager shall use reasonable endeavours to maintain in
            working order the information technology systems used by the Cash
            Manager in providing the Cash Management Services.

       (d)  The Cash Manager shall pass to any person to whom it may
            sub-contract or delegate the performance of all or any of its
            powers and obligations under this Agreement and/or to such person
            as the Mortgages Trustee, Funding and the Security Trustee elect
            as a substitute cash manager in accordance with the terms of this
            Agreement the benefit of any warranties in relation to the
            software insofar as the same are capable of assignment.

8.2    Bank Account Statements: The Cash Manager shall take all reasonable
       steps to ensure that it receives:

       (a)  a monthly bank statement in relation to each of the Mortgages
            Trustee Transaction Account and the Mortgages Trustee GIC Account
            (and any additional or supplemental bank account of the Mortgages
            Trustee) and that it furnishes a copy of such statements to the
            Mortgages Trustee, each of the Beneficiaries and the Security
            Trustee (upon its request); and

       (b)  monthly bank statements in relation to each of the Funding
            Transaction Account, the Funding GIC Account and any Funding
            (Issuer) GIC Account (and any additional or supplemental bank
            account of Funding) and that it furnishes a copy of such
            statements to Funding and the Security Trustee (upon its request).

8.3    Access to Books and Records: Subject to all applicable laws, the Cash
       Manager shall permit the Mortgages Trustee, Funding, the Auditors of
       the Mortgages Trustee and Funding, the Security Trustee and/or any
       other person nominated by the Security Trustee or the Beneficiaries (to
       whom the Cash Manager has no reasonable objection) at any time during
       normal office hours upon reasonable notice to have access, or procure
       that such person or persons are granted access, to all books of record
       and account relating to the Cash Management Services provided by the
       Cash Manager and related matters in accordance with this Agreement.

8.4    Statutory Obligations: The Cash Manager will use its reasonable
       endeavours on behalf of the Mortgages Trustee and Funding, to prepare
       or procure the preparation of and file all reports, annual returns,
       financial statements, statutory forms and other returns which each of
       the Mortgages Trustee and Funding is required by law to prepare and
       file. Subject to approval thereof by the directors of the Mortgages
       Trustee or Funding (as appropriate), the Cash Manager shall cause such
       accounts to be audited by the Auditors and shall procure so far as it
       is able so to do that the Auditors shall make a report thereon as
       required by law and copies of all such documents shall be delivered to
       the Mortgages Trustee, the Security Trustee and Funding (as
       appropriate) and the Rating Agencies as soon as practicable after the
       end of each accounting reference period of the Mortgages Trustee or
       Funding (as

                                      16
<PAGE>

       appropriate).

8.5    Information Covenants:

       (a)  The Cash Manager shall provide the Mortgages Trustee, Funding, the
            Security Trustee, the Seller and the Rating Agencies:

            (i)    quarterly with a report in, or substantially in, the form
                   set out in Schedule 3A hereto in respect of the Mortgages
                   Trustee; and

            (ii)   quarterly with a report in, or substantially in, the form
                   set out in Schedule 3B hereto in respect of Funding.

            Such quarterly reports shall be delivered to the Mortgages
            Trustee, Funding, the Security Trustee (upon its request), the
            Seller and the Rating Agencies by the last Business Day of the
            month in which each Payment Date occurs.

       (b)  The Cash Manager shall provide, or procure the provision of, to
            the Mortgages Trustee, Funding, the Security Trustee (upon its
            request) and the Rating Agencies copies of any annual returns or
            financial statements referred to in Clause 8.4 herein (Statutory
            Obligations) as soon as reasonably practicable after the
            preparation thereof.

       (c)  The Cash Manager shall notify the Rating Agencies and the Security
            Trustee in writing of the details of (i) any material amendment to
            the Transaction Documents of which it is or becomes aware, (ii)
            the occurrence of an Intercompany Loan Event of Default or
            Potential Intercompany Loan Event of Default and (iii) any other
            information relating to the Cash Manager as the Rating Agencies
            and the Security Trustee may reasonably request in connection with
            its obligations under this Agreement, PROVIDED THAT any such
            request by the Security Trustee does not adversely interfere with
            the Cash Manager's day-to-day provision of the Cash Management
            Services under the other terms of this Agreement.

       (d)  After becoming aware of any event described in paragraph (c)(i)
            and (ii) above, the Cash Manager shall give details to Funding,
            the Mortgages Trustee and the Security Trustee of any pending
            legal action and any judgments given in respect of the Cash
            Manager if it could have a potential material adverse effect on
            the ability of the Cash Manager to perform its obligations
            hereunder.

       (e)  The Cash Manager shall, at the request of the Security Trustee,
            furnish the Security Trustee and the Rating Agencies with such
            other information relating to its business and financial condition
            as the Security Trustee may request in connection with this
            Agreement, PROVIDED THAT the Security Trustee shall not make such
            a request more than once every three months unless, in the belief
            of the Security Trustee, an Intercompany Loan Event of Default, a
            Note Event of Default or a Cash Manager Termination Event (as
            defined in Clause 12.1 herein (Cash Manager Termination Events))
            shall have occurred and is continuing or a Potential Intercompany
            Loan Event of Default or a Potential Note Event of Default shall
            have occurred and is continuing or may

                                      17
<PAGE>

            reasonably be expected to occur, PROVIDED THAT any such request by
            the Security Trustee does not adversely interfere with the Cash
            Manager's day to day provision of the Cash Management Services
            under the other terms of this Agreement.

8.6    Together Connections Mortgage Loans and Connections Mortgage Loans:

       (a)  The Seller shall, upon request, use its reasonable endeavours to:

            (i)    provide the Cash Manager with such information (including,
                   but not limited to documentary information) in its
                   possession; and

            (ii)   do such other acts and things,

            that the Cash Manager may require in order for the Cash Manager to
            exercise its rights and comply with its obligations with respect
            to the Together Connections Mortgage Loans and the Connections
            Mortgage Loans and under the Transaction Documents with respect to
            the administration of such Mortgage Loans.

       (b)  The Cash Manager shall, upon request, use its reasonable
            endeavours to:

            (i)    provide the Seller with such information (including, but
                   not limited to documentary information) in its possession;
                   and

            (ii)   do such other acts and things,

            that the Seller may require in order for the Seller to, exercise
            its rights and comply with its obligations under the Together
            Connection Conditions and the Connection Conditions (where such
            rights and obligations are not required to be administered by the
            Mortgages Trustee, Funding, the Administrator or the Cash Manager
            under the Transaction Documents) and in respect of the products
            linked to the Together Connections Mortgage Loans and the
            Connections Mortgage Loans.

9.     Remuneration

9.1    Fee payable:

       (a)  Subject to paragraph (b) below, Funding and the Mortgages Trustee,
            proportionately in accordance with and subject to the applicable
            Funding Priority of Payments set out in the Funding Deed of Charge
            and the applicable Priority of Payments for the Mortgages Trustee
            under the Mortgages Trust Deed, as the case may be, shall pay to
            the Cash Manager for its Cash Management Services hereunder an
            annual cash management fee of (GBP)100,000 for its services which
            will be paid quarterly.

       (b)  Unless and until otherwise agreed by Funding, the Mortgages
            Trustee and the Security Trustee in writing (notified to the Cash
            Manager), Funding and the Mortgages Trustee shall be jointly and
            severally responsible for paying the cash management fee to the
            Cash Manager which is referred to in paragraph (a) above.

                                      18
<PAGE>

9.2    Payment of fee: The cash management fee referred to in Clause 9.1
       herein (Fee Payable) shall only be payable to the Cash Manager on each
       Payment Date in the manner contemplated by, in accordance with and
       subject to the provisions of the applicable Priority of Payments for
       the Mortgages Trustee under the Mortgages Trust Deed and the applicable
       Funding Priority of Payments under the Funding Deed of Charge.

10.    Covenants, Representations and Warranties of the Cash Manager

10.1   Covenants: The Cash Manager hereby covenants with and undertakes to
       each of the Mortgages Trustee, Funding and the Security Trustee that
       without prejudice to any of its specific obligations hereunder:

       (a)  it will exercise all due skill, care and diligence to the
            performance of its obligations and the exercise of its discretions
            hereunder;

       (b)  it will comply with any proper directions, orders and instructions
            which the Mortgages Trustee, Funding or the Security Trustee may
            from time to time give to it in accordance with the provisions of
            this Agreement and, in the event of any conflict, those of the
            Security Trustee shall prevail;

       (c)  it will obtain and keep in force all licences, approvals,
            authorisations and consents which are necessary in connection with
            the performance of the Cash Management Services and prepare and
            submit all necessary applications and requests for any further
            approval, authorisation, consent or licence required in connection
            with the performance of the Cash Management Services;

       (d)  it will not knowingly fail to comply with any legal requirements
            in the performance of the Cash Management Services;

       (e)  it will make all payments required to be made by it pursuant to
            this Agreement on the due date for payment thereof for value in
            the specified currency on such day without set-off (including,
            without limitation, in respect of any fees owed to it) or
            counterclaim; and

       (f)  it will not without the prior written consent of the Security
            Trustee amend or terminate any of the Transaction Documents save
            in accordance with their terms.

10.2   Duration of covenants: The covenants of the Cash Manager in Clause 10.1
       (Covenants) shall remain in force until this Agreement is terminated
       but without prejudice to any right or remedy of the Mortgages Trustee
       and/or Funding and/or the Security Trustee arising from breach of any
       such covenant prior to the date of termination of this Agreement.

10.3   Representations and Warranties: The Cash Manager hereby makes the
       representations and warranties to each of the Mortgages Trustee,
       Funding and the Security Trustee that are specified on Schedule 4
       hereto.

                                      19
<PAGE>

11.    Services Non-Exclusive

       Nothing in this Agreement shall prevent the Cash Manager from rendering
       or performing services similar to those provided for in this Agreement
       to or for itself or other persons, firms or companies or from carrying
       on business similar to or in competition with the business of the
       Mortgages Trustee, Funding or the Security Trustee.

12.    Termination

12.1   Cash Manager Termination Events: If any of the following events ("Cash
       Manager Termination Events") shall occur:

       (a)  default is made by the Cash Manager in the payment on the due date
            of any payment due and payable by it under this Agreement or in
            the performance of its obligations under Clauses 4.4 and 4.5
            herein and such default continues unremedied for a period of five
            (5) London Business Days after the earlier of the Cash Manager
            becoming aware of such default and receiving written notice from
            the Security Trustee requiring the same to be remedied;

       (b)  default is made by the Cash Manager in the performance or
            observance of any of its other covenants and obligations under
            this Agreement, which in the opinion of the Security Trustee
            (acting at the direction of the Note Trustee) is materially
            prejudicial to the Noteholders and such default continues
            unremedied for a period of twenty (20) days after the earlier of
            the Cash Manager becoming aware of such default and receipt by the
            Cash Manager of written notice from the Security Trustee requiring
            the same to be remedied; or

       (c)  the Cash Manager suffers an Insolvency Event,

       then Funding, the Mortgages Trustee and/or the Security Trustee may at
       once or at any time thereafter while such default continues by notice
       in writing to the Cash Manager with a copy to the Account Bank
       terminate its appointment as Cash Manager under this Agreement with
       effect from a date (not earlier than the date of the notice) specified
       in the notice.

       12.1.1  Upon termination of the appointment of the Cash Manager, the
               Security Trustee agrees to use its reasonable endeavours to
               appoint a substitute cash manager. Any substitute cash manager:

               (i)    must agree to enter into an agreement substantially on
                      the same terms as the relevant provisions of this
                      Agreement or on such terms as are satisfactory to the
                      Mortgages Trustee, Funding and the Security Trustee, and

               (ii)   must be a party that the Rating Agencies have previously
                      confirmed in writing to the Mortgages Trustee, Funding
                      and the Security Trustee will not cause the then-current
                      ratings of the Notes to be downgraded, withdrawn or
                      qualified.

                                      20
<PAGE>

            The Security Trustee shall have no liability to any person in the
            event that, having used reasonable endeavours, it is unable to
            appoint a substitute cash manager. In any event, the Security
            Trustee shall only be required to use its reasonable endeavours to
            appoint such substitute cash manager. Notwithstanding any other
            provision of the Transaction Documents, the Security Trustee shall
            not itself be required to perform any duties of the Cash Manager.

            The Security Trustee shall not be obliged to monitor or supervise
            the performance by any substitute Cash Manager of its duties
            hereunder or in relation to the other Transaction Documents nor
            shall the Security Trustee be responsible or liable for any act or
            omission of any substitute Cash Manager or for any loss caused
            thereby.

12.2   Resignation of Cash Manager: The Cash Manager may resign from its
       appointment under this Agreement only upon giving not less than twelve
       (12) months' notice to each of the Mortgages Trustee, Funding and the
       Security Trustee, PROVIDED THAT:

       (a)  the Mortgages Trustee, Funding and the Security Trustee each
            consent in writing to such resignation;

       (b)  a substitute cash manager shall be appointed, such appointment to
            be effective not later than the effective date of such
            resignation;

       (c)  such substitute cash manager enters into an agreement
            substantially on the same terms as the relevant provisions of this
            Agreement and the Cash Manager shall not be released from its
            obligations under the relevant provisions of this Agreement until
            such substitute cash manager has entered into such new agreement
            and the rights of the Mortgages Trustee and Funding under such
            agreement are charged in favour of the Security Trustee on terms
            satisfactory to the Security Trustee; and

       (d)  the then-current ratings of the Notes are not adversely affected
            as a result thereof.

12.3   Effect of Termination or Resignation:

       (a)  On and after termination or resignation of the appointment of the
            Cash Manager under this Agreement pursuant to this Clause 12, all
            authority and power of the Cash Manager under this Agreement shall
            be terminated and be of no further effect and the Cash Manager
            shall not thereafter hold itself out in any way as the agent of
            the Mortgages Trustee, Funding or the Security Trustee pursuant to
            this Agreement.

       (b)  Upon termination or resignation of the appointment of the Cash
            Manager under this Agreement pursuant to this Clause 12, the Cash
            Manager shall:

            (i)    forthwith deliver (and in the meantime hold on trust for,
                   and to the order of, the Mortgages Trustee, Funding or the
                   Security Trustee, as the case may be) to the Mortgages
                   Trustee, Funding or the Security Trustee, as

                                      21
<PAGE>

                   the case may be or as it shall direct, all books of
                   account, papers, records, registers, correspondence and
                   documents in its possession or under its control relating
                   to the affairs of or belongings of the Mortgages Trustee,
                   Funding or the Security Trustee, as the case may be (if
                   practicable, on the date of receipt), any monies then held
                   by the Cash Manager on behalf of the Mortgages Trustee,
                   Funding or, the Security Trustee and any other assets of
                   the Mortgages Trustee, Funding and the Security Trustee;

            (ii)   take such further action as the Mortgages Trustee, Funding
                   or the Security Trustee, as the case may be, may reasonably
                   direct at the expense of the Mortgages Trustee or Funding,
                   provided that the Cash Manager shall not be required to
                   take or direct to be taken such further action unless it
                   has been indemnified to its satisfaction (and in the event
                   of a conflict between the directions of Funding, the
                   Mortgages Trustee and the Security Trustee, the directions
                   of the Security Trustee shall prevail);

            (iii)  provide all relevant information contained on computer
                   records in the form of magnetic tape, together with details
                   of the layout of the files encoded on such magnetic tapes;
                   and

            (iv)   co-operate and consult with and assist the Mortgages
                   Trustee, Funding or the Security Trustee or its nominee, as
                   the case may be (which shall, for the avoidance of doubt,
                   include any Receiver appointed by it), for the purposes of
                   explaining the file layouts and the format of the magnetic
                   tapes generally containing such computer records on the
                   computer system of the Mortgages Trustee, Funding, or the
                   Security Trustee or such nominee, as the case may be.

12.4   Notice of event of default: The Cash Manager shall deliver to the
       Mortgages Trustee, Funding and the Security Trustee as soon as
       reasonably practicable but in any event within three London Business
       Days of becoming aware thereof a notice of any Cash Manager Termination
       Event or any event which with the giving of notice or expiry of any
       grace period or certification, as specified in such Cash Manager
       Termination Event would constitute the same or any Intercompany Loan
       Event of Default or any Potential Intercompany Loan Event of Default.

12.5   General provisions relating to termination:

       (a)  Termination of this Agreement or the appointment of the Cash
            Manager under this Agreement shall be without prejudice to the
            liabilities of the Mortgages Trustee and Funding to the Cash
            Manager and vice versa incurred before the effective date of such
            termination. The Cash Manager shall have no right of set-off or
            any lien in respect of such amounts against amounts held by it on
            behalf of the Mortgages Trustee, Funding or the Security Trustee.

       (b)  This Agreement shall terminate automatically at such time as
            Funding has no further interest in the Trust Property and all
            Intercompany Loans have been

                                      22
<PAGE>

            fully repaid or Funding's obligations under all Intercompany Loans
            have been otherwise discharged.

       (c)  On termination of the appointment of the Cash Manager under the
            provisions of this Clause 12, the Cash Manager shall be entitled
            to receive all fees and other monies accrued up to (but excluding)
            the date of termination subject to the applicable Funding Priority
            of Payments set out in the Funding Deed of Charge and/or the
            applicable Priority of Payments for the Mortgages Trustee under
            the Mortgages Trust Deed, as the case may be, but shall not be
            entitled to any other or further compensation. Such monies so
            receivable by the Cash Manager shall be paid by Funding and the
            Mortgages Trustee, on the dates on which they would otherwise have
            fallen due hereunder and under the terms of the Funding Deed of
            Charge and the Mortgages Trust Deed. For the avoidance of doubt,
            such termination shall not affect the Cash Manager's rights to
            receive payment of all amounts (if any) due to it from Funding and
            the Mortgages Trust Deed other than under this Agreement.

       (d)  Any provision of this Agreement which is stated to continue after
            termination of the Agreement shall remain in full force and effect
            notwithstanding termination.

13.    Further Assurances

13.1   Co-operation, etc: The parties hereto agree that they will co-operate
       fully to do all such further acts and things and execute any further
       documents as may be necessary or desirable to give full effect to the
       arrangements contemplated by this Agreement and the other Transaction
       Documents.

13.2   Powers of attorney: Without prejudice to the generality of Clause 13.1
       herein (Co-Operation, etc.), the Mortgages Trustee and Funding shall
       upon request by the Cash Manager forthwith give to the Cash Manager
       such further powers of attorney or other written authorisations,
       mandates or instruments as are necessary to enable the Cash Manager to
       perform the Cash Management Services.

14.    Miscellaneous

14.1   No set-off: Each of the Seller and the Cash Manager agrees that it will
       not make or exercise any claims or demands, any rights of counterclaim
       or any other equities against or withhold payment of any and all sums
       of money which may at any time and from time to time be standing to the
       credit of the Mortgages Trustee Transaction Account, the Mortgages
       Trustee GIC Account, the Funding Transaction Account, the Funding GIC
       Account or any Funding (Issuer) GIC Account or any replacement of
       additional bank account of either the Mortgages Trustee or Funding.

14.2   No recourse:

       (a)  In relation to all sums due and payable by the Mortgages Trustee
            or Funding to the Cash Manager, the Cash Manager agrees that it
            shall have recourse only to sums paid to or received by (or on
            behalf of) the Mortgages Trustee or Funding pursuant to the
            provisions of the Transaction Documents, in each case

                                      23
<PAGE>

            subject to the Mortgages Trustee Revenue Priority of Payments and
            the Funding Priority of Payments.

       (b)  For the avoidance of doubt, the Security Trustee shall not be
            liable to pay any amounts due under Clause 7 (Costs and Expenses),
            but without prejudice to the obligations of the Mortgages Trustee
            or Funding, as the case may be, or any receiver appointed pursuant
            to the Funding Deed of Charge in respect of such amounts.

       (c)  Notwithstanding any other provisions of this Agreement, all
            obligations to, and rights of, the Security Trustee under or in
            connection with this Agreement (other than its obligations under
            Clause 13 herein (Further Assurances)) shall automatically
            terminate upon the discharge in full of the Funding Secured
            Obligations, PROVIDED THAT this shall be without prejudice to any
            claims in respect of such obligations and rights arising on or
            prior to such date.

15.    Confidentiality

       During the continuance of this Agreement or after its termination, each
       of the Mortgages Trustee, the Cash Manager, the Seller, Funding and the
       Security Trustee shall use its best endeavours not to disclose to any
       person, firm or company whatsoever any information relating to the
       business, finances or other matters of a confidential nature of any
       other party hereto of which it may exclusively by virtue of being party
       to the Transaction Documents have become possessed and shall use all
       reasonable endeavours to prevent any such disclosure as aforesaid,
       PROVIDED HOWEVER that the provisions of this Clause 15 shall not apply:

       (a)  to any information already known to the recipient otherwise than
            as a result of entering into any of the Transaction Documents;

       (b)  to any information subsequently received by the recipient which it
            would otherwise be free to disclose;

       (c)  to any information which is or becomes public knowledge otherwise
            than as a result of the conduct of the recipient;

       (d)  to any extent that the recipient is required to disclose the same
            pursuant to any law or order of any court or pursuant to any
            direction, request or requirement (whether or not having the force
            of law) of any central bank or any governmental or other authority
            (including, without limitation, any official bank examiners or
            regulators);

       (e)  to the extent that the recipient needs to disclose the same for
            determining the existence of, or declaring, an Event of Default,
            an Intercompany Loan Event of Default or a Cash Manager
            Termination Event, the protection or enforcement of any of its
            rights under any of the Transaction Documents or in connection
            herewith or therewith or for the purpose of discharging, in such
            manner as it thinks fit, its duties under or in connection with
            such agreements in each case to such persons as require to be
            informed of such information for such purposes; or

                                      24
<PAGE>

       (f)  in relation to any information disclosed to the professional
            advisers of the recipient or (in connection with a prospective
            rating of any debt to be issued by any Issuer) to any credit
            rating agency or any prospective new cash manager or prospective
            new security trustee.

16.    No Partnership

       It is hereby acknowledged and agreed by the parties that nothing in
       this Agreement shall be construed as giving rise to any partnership
       between any of the parties.

17.    Assignment

17.1   Assignment by the Mortgages Trustee and Funding: Neither of the
       Mortgages Trustee nor Funding may assign or transfer any of its
       respective rights and obligations under this Agreement without the
       prior written consent of:

       (a)  in the case of the Mortgages Trustee, each of the Beneficiaries
            and the Security Trustee; and

       (b)  in the case of Funding, each of the Security Trustee and the Cash
            Manager,

       except that Funding may assign its respective rights hereunder without
       such consent pursuant to the Funding Deed of Charge.

17.2   No assignment by Cash Manager: The Cash Manager may not assign or
       transfer any of its rights and obligations under this Agreement without
       the prior written consent of the Mortgages Trustee, each of the
       Beneficiaries and the Security Trustee.

18.    The Security Trustee

18.1   Change in Security Trustee: If there is any change in the identity of
       the security trustee in accordance with the Funding Deed of Charge, the
       Cash Manager, the Seller, Funding and the Mortgages Trustee shall
       execute such documents and take such action as the successor security
       trustee and the outgoing security trustee may require for the purpose
       of vesting in the successor security trustee the rights and obligations
       of the outgoing security trustee under this Agreement and releasing the
       outgoing security trustee from its future obligations under this
       Agreement.

18.2   No Obligations: It is hereby acknowledged and agreed that by its
       execution of this Agreement the Security Trustee shall not assume or
       have any of the obligations or liabilities of the Cash Manager, the
       Seller, Funding or the Mortgages Trustee under this Agreement.
       Furthermore, any liberty or power which may be exercised or any
       determination which may be made hereunder by the Security Trustee may
       be exercised or made in the Security Trustee's absolute and unfettered
       discretion without any obligation to give reasons therefor, but in any
       event must be exercised or made in accordance with the provisions of
       the Funding Deed of Charge.

19.    New Intercompany Loan Agreements

       If Funding enters into a New Intercompany Loan Agreement, then the Cash
       Manager, the Seller, Funding, the Security Trustee and the Mortgages
       Trustee shall execute

                                      25
<PAGE>

       such documents and take such action as may be necessary or required by
       the Rating Agencies for the purpose of including the New Issuer, any
       Basis Rate Swap Provider, any Currency Swap Provider, any New Start-up
       Loan Provider and any other person who has executed an Accession
       Undertaking or any New Intercompany Loan Agreement in the Transaction
       Documents.

20.    Non Petition Covenant; Limited Recourse

20.1   Only Trustee to Enforce: The Cash Manager hereby undertakes to each of
       the other parties hereto that only the Security Trustee may enforce the
       security created in favour of the Security Trustee by the Funding Deed
       of Charge in accordance with the provisions thereof.

20.2   Limited Recourse: The Cash Manager hereby undertakes to each of the
       other parties hereto that, notwithstanding any other provision of this
       Agreement or any other Transaction Document, no sum due or owing to the
       Cash Manager from or by Funding or the Mortgages Trustee under this
       Agreement shall be payable by Funding or the Mortgages Trustee except
       to the extent that Funding or the Mortgages Trustee, as applicable, has
       sufficient funds available subject to the applicable Funding Priority
       of Payments set out in the Funding Deed of Charge or the applicable
       Priority of Payments for the Mortgages Trustee under the Mortgages
       Trust Deed, as the case may be, or, following enforcement of the
       Funding Security the Security Trustee has realised sufficient funds
       from the Funding Security to pay such sum subject to and in accordance
       with the relevant Funding Priority of Payments, and provided that all
       liabilities of Funding or the Mortgages Trustee required to be paid in
       priority thereto or pari passu therewith pursuant to the applicable
       Funding Priority of Payments set out in the Funding Deed of Charge or
       the applicable Priority of Payments for the Mortgages Trustee under the
       Mortgages Trust Deed, as the case may be, have been paid, discharged
       and/or otherwise provided for in full.

20.3   Non-Petition: The Cash Manager hereby undertakes to each of the other
       parties hereto that it shall not take any steps for the purpose of
       recovering any amount payable under this Agreement (including, without
       limitation, by exercising any rights of set-off) or enforcing any
       rights arising out of this Agreement against Funding or the Mortgages
       Trustee and it shall not take any steps or legal proceedings for the
       winding-up, dissolution or reorganisation of, or the institution of
       insolvency proceedings against, either Funding or the Mortgages Trustee
       or for the appointment of a receiver, administrator, liquidator or
       similar officer of Funding or the Mortgages Trustee in respect of any
       or all of its revenues except to the extent expressly permitted under
       the Funding Deed of Charge or the Mortgages Trust Deed, as the case may
       be.

20.4   Following Enforcement: The Cash Manager hereby undertakes to each of
       the other parties hereto that, following any enforcement of the Funding
       Security, it will hold on trust for, and will pay to, the Security
       Trustee or the Receiver, as the case may be, all monies received or
       recovered by it (whether by way of set-off or otherwise) from Funding
       or in respect of any amount due hereunder by Funding, otherwise than in
       accordance with the Funding Post-Enforcement Priority of Payments in
       order that such monies may be applied by the Security Trustee or the
       Receiver in accordance with the Funding Post-Enforcement Priority of
       Payments.

                                      26
<PAGE>

20.5   Corporate Obligations: To the extent permitted by law, no recourse
       under any obligation, covenant, or agreement of any person contained in
       this Agreement shall be had against any shareholder, officer or
       director of such person as such, by the enforcement of any assessment
       or by any legal proceeding, by virtue of any statute or otherwise; it
       being expressly agreed and understood that this Agreement is a
       corporate obligation of each person expressed to be a party hereto and
       no personal liability shall attach to or be incurred by the
       shareholders, officers, agents or directors of such person as such, or
       any of them, under or by reason of any of the obligations, covenants or
       agreements of such person contained in this Agreement, or implied
       therefrom, and that any and all personal liability for breaches by such
       person of any of such obligations, covenants or agreements, either
       under any applicable law or by statute or constitution, of every such
       shareholder, officer, agent or director is hereby expressly waived by
       each person expressed to be a party hereto as a condition of and
       consideration for the execution of this Agreement.

21.    Amendments and Waiver

21.1   Entire Agreement: This Agreement sets out the entire agreement and
       understanding between the parties with respect to the subject matter of
       this Agreement superseding all prior oral or written understandings
       other than the other Transaction Documents.

21.2   Amendments and Waiver: No amendment or waiver of any provision of this
       Agreement nor consent to any departure by any of the parties therefrom
       shall in any event be effective unless the same shall be in writing and
       signed by each of the parties hereto. In the case of a waiver or
       consent, such waiver or consent shall be effective only in the specific
       instance and as against the party or parties giving it for the specific
       purpose for which it is given.

21.3   Rights Cumulative: The respective rights of each of the parties to this
       Agreement are cumulative and may be exercised as often as they consider
       appropriate. No failure on the part of any party to exercise, and no
       delay in exercising, any right hereunder shall operate as a waiver
       thereof, nor shall any single or partial exercise of any such right
       preclude any other or further exercise thereof or the exercise of any
       other right. The remedies in this Agreement are cumulative and not
       exclusive of any remedies provided by law.

21.4   Ratings: No variation or waiver of this Agreement shall be made if the
       same would adversely affect the then-current ratings of any of the
       Notes.

22.    Notices

       Any notices or other communication or document to be given or delivered
       pursuant to this Agreement to any of the parties hereto shall be
       sufficiently served if sent by prepaid first class post, by hand or by
       facsimile transmission and shall be deemed to be given (in the case of
       facsimile transmission) when despatched or (where delivered by hand) on
       the day of delivery if delivered before 17.00 hours on a London
       Business Day or on the next London Business Day if delivered thereafter
       or (in the case of first class post) when it would be received in the
       ordinary course of the post and shall be sent:

                                      27
<PAGE>

       (a)  in the case of the Cash Manager and the Seller, to Northern Rock
            plc, Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
            (facsimile number: 0191 213 2203) for the attention of the Group
            Secretary;

       (b)  in the case of the Mortgages Trustee, to Granite Finance Trustees
            Limited, 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
            Islands (facsimile number 01534 609333) for the attention of the
            Company Secretary;

       (c)  in the case of Funding, to Granite Finance Funding Limited, 69
            Park Lane, Croydon CR9 1TQ (facsimile number 020 8409 8911) for
            the attention of the Company Secretary;

       (d)  in the case of the Security Trustee, to The Bank of New York, at
            One Canada Square, 48th Floor, London E14 5AL (facsimile number
            020 7964 6399) for the attention of Corporate Trust (Global
            Structured Finance);

       (e)  in the case of Fitch, to Fitch Ratings Ltd., at Eldon House, 2
            Eldon Street, London EC2M 7UA (facsimile number 0207 417 6262) for
            the attention of European Structured Finance Surveillance;

       (f)  in the case of Moody's, to Moody's Investors Services, Inc., at
            1st Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB
            (facsimile number 0207 772 5400) for the attention of Jodi van
            Breda;

       (g)  in the case of S&P, to Standard & Poor's Ratings Services, a
            division of The McGraw-Hill Companies, Inc., at 20 Cannon Square,
            Canary Wharf, London E14 5LH (facsimile number 0207 176 3598) for
            the attention of Heather Dyke;

       or to such other address or facsimile number or for the attention of
       such other person or entity as may from time to time be notified by any
       party or by any Rating Agency to the others by written notice in
       accordance with the provisions of this Clause 22. All notices served
       under this Agreement shall be simultaneously copied to the Security
       Trustee by the person serving the same.

23.    Third Party Rights

       A person who is not a party to this Agreement may not enforce any of
       its terms under the Contracts (Rights of Third Parties) Act 1999, but
       this shall not affect any right or remedy of a third party which exists
       or is available apart from that Act.

24.    Execution in Counterparts; Severability

24.1   Counterparts: This Agreement may be executed in any number of
       counterparts (manually or by facsimile) and by different parties hereto
       in separate counterparts, each of which when so executed shall be
       deemed to be an original and all of which when taken together shall
       constitute one and the same instrument.

24.2   Severability: Where any provision in or obligation under this Agreement
       shall be invalid, illegal or unenforceable in any jurisdiction, the
       validity, legality and enforceability of the remaining provisions or
       obligations under this Agreement, or of

                                      28
<PAGE>

       such provision or obligation in any other jurisdiction, shall not be
       affected or impaired thereby.

25.    Governing Law and Submission to Jurisdiction

25.1   Governing Law: This Agreement is governed by, and shall be construed in
       accordance with, English law.

25.2   Submission to Jurisdiction: Each of the parties hereto irrevocably
       agrees that the courts of England shall have jurisdiction to hear and
       determine any suit, action or proceeding, and to settle any disputes,
       which may arise out of or in connection with this Agreement and, for
       such purposes, irrevocably submits to the jurisdiction of such courts.

25.3   Process Agent: The Mortgages Trustee irrevocably and unconditionally
       appoints Mourant & Co. Capital (SPV) Limited at 4 Royal Mint Court,
       London EC3N 4HJ or otherwise at its registered office for the time
       being as its agent for service of process in England in respect of any
       proceedings in respect of this Agreement and undertakes that in the
       event of Mourant & Co. Capital (SPV) Limited ceasing so to act it will
       appoint another person with a registered office in London as its agent
       for service of process.

25.4   Forum: Each of the parties hereto irrevocably waives any objection
       which it might now or hereafter have to the courts of England being
       nominated as the forum to hear and determine any Proceedings and to
       settle any disputes, and agrees not to claim that any such court is not
       a convenient or appropriate forum.

IN WITNESS WHEREOF the parties have caused this Agreement to be executed the
day and year first before written.

                                      29
<PAGE>

                                  SCHEDULE 1

                         The Cash Management Services

The Cash Manager shall:

       (a)  make the determinations set out in Schedule 2 hereto;

       (b)  invest sums, if any, standing to the credit of the Funding
            Transaction Account in short-term Authorised Investments as
            determined by Funding and, if applicable, the Security Trustee;

       (c)  invest sums, if any, standing to the credit of the Mortgages
            Trustee Transaction Account in short-term Authorised Investments
            as determined by the Mortgages Trustee and, if applicable, the
            Security Trustee;

       (d)  maintain the Funding Principal Deficiency Ledger, and record (1)
            any principal Losses on the Mortgage Loans allocated to Funding
            pursuant to the terms of the Mortgages Trust and (2) to record the
            application of Funding Available Principal Receipts to any Issuer
            to fund the Issuer Liquidity Reserve Fund of any Issuer.

       (e)  provide the Mortgages Trustee, Funding, the Security Trustee (upon
            its request) and the Rating Agencies with quarterly reports in
            relation to the Mortgages Trustee and Funding as set forth on
            Schedule 3;

       (f)  operate the Mortgages Trustee Transaction Account, the Mortgages
            Trustee GIC Account, the Funding GIC Account, any Funding (Issuer)
            GIC Account and the Funding Transaction Account and ensure that
            payments are made into and from such accounts in accordance with
            this Agreement, the Mortgages Trust Deed, the Funding Deed of
            Charge, the Bank Account Agreement, any Funding (Issuer) Bank
            Account Agreement, the Mortgages Trustee Guaranteed Investment
            Contract, the Funding Guaranteed Investment Contract, any Funding
            (Issuer) Guaranteed Investment Contract and any other applicable
            Transaction Document, PROVIDED HOWEVER, that nothing herein shall
            require the Cash Manager to make funds available to the Mortgages
            Trustee or Funding to enable such payments to be made other than
            as expressly required by the provisions of this Agreement;

       (g)  in relation to the payments to be made to each Issuer, make
            withdrawals under the Issuer Reserve Fund, if required;

       (h)  in relation to the payments to be made to each Issuer, make any
            required withdrawals under the Issuer Liquidity Reserve Fund;

       (i)  maintain any Issuer Reserve Fund Ledger, and record the amount
            credited to any Issuer Reserve Fund on the Initial Closing Date,
            and subsequent withdrawals and deposits in respect of any Issuer
            Reserve Fund;

       (j)  maintain any Issuer Liquidity Reserve Ledger, if any, and record
            the amount credited to any Issuer Liquidity Reserve Fund from time
            to time, and

                                      30
<PAGE>

            subsequent withdrawals and deposits in respect of any Issuer
            Liquidity Reserve Fund;

       (k)  keep records for all taxation purposes (including, without
            limitation VAT);

       (l)  subject to any applicable law, assist the auditors of the
            Mortgages Trustee and Funding and provide such information to them
            as they may reasonably request for the purpose of carrying out
            their duties as auditors;

       (m)  make all filings, give all notices and make all registrations and
            other notifications required in the day-to-day operation of the
            respective businesses of the Mortgages Trustee and Funding or
            required to be given by the Mortgages Trustee or Funding pursuant
            to the Transaction Documents;

       (n)  arrange for all payments due to be made by the Mortgages Trustee
            and/or Funding under any of the Transaction Documents, PROVIDED
            THAT such monies are at the relevant time available to the
            Mortgages Trustee and/or Funding and PROVIDED FURTHER that nothing
            herein shall constitute a guarantee by the Cash Manager of all or
            any of the obligations of the Mortgages Trustee or Funding under
            any of the Transaction Documents;

       (o)  without prejudice to the role of and in conjunction with the
            Corporate Services Provider to Funding and the Mortgages Trustee
            under the relevant Corporate Services Agreement, keep general
            books of account and records of the Mortgages Trustee and Funding;
            provide accounting services, including reviewing receipts and
            payments, supervising and assisting in the preparation of interim
            statements and final accounts and supervising and assisting in the
            preparation of Tax returns;

       (p)  without prejudice to the role of and in conjunction with the
            Corporate Services Provider to Funding and the Mortgages Trustee
            under the relevant Corporate Services Agreement, provide or
            procure the provision of company secretarial and administration
            services to the Mortgages Trustee and Funding including the
            keeping of all registers and the making of all returns and filings
            required by applicable law or by U.S., U.K. or Jersey regulatory
            authorities (including the Securities and Exchange Commission),
            co-operate in the convening of board and general meetings and
            provide registered office facilities;

       (q)  itself on behalf of the Mortgages Trustee and Funding, PROVIDED
            THAT such monies are at the relevant time available to the
            Mortgages Trustee and Funding, pay all the out-of-pocket expenses
            of the Mortgages Trustee and Funding, incurred by the Cash Manager
            on behalf of the Mortgages Trustee and Funding in the performance
            of the Cash Manager's duties hereunder including without
            limitation:

            (i)    all Taxes which may be due or payable by the Mortgages
                   Trustee and Funding;

                                      31
<PAGE>

            (ii)   all registration, transfer, filing and other fees and other
                   charges payable in respect of the sale by the Seller of the
                   Mortgage Portfolio to the Mortgages Trustee;

            (iii)  all necessary filing and other fees in compliance with
                   regulatory requirements;

            (iv)   all legal and audit fees and other professional advisory
                   fees;

            (v)    all communication expenses including postage, courier and
                   telephone charges; and

            (vi)   all premiums payable by the Mortgages Trustee in respect of
                   the Insurance Policies;

       (r)  at the request of Funding (and following the enforcement of the
            Funding Security, with the prior written consent of the Security
            Trustee), the Cash Manager may invest monies standing from time to
            time to the credit of the Funding GIC Account or any Funding
            (Issuer) GIC Account (including any amounts credited thereto and
            representing amounts standing to the credit of such Issuer
            Liquidity Reserve Fund, if any) in Authorised Investments, subject
            to the following provisions:

            (i)    any such Authorised Investment shall be made in the joint
                   names of Funding and the Security Trustee;

            (ii)   any costs properly and reasonably incurred in making and
                   changing Authorised Investments will be reimbursed to the
                   Cash Manager and the Security Trustee by Funding;

            (iii)  all income or proceeds following the disposal or maturity
                   of Authorised Investments shall be credited to the Funding
                   GIC Account or any Funding (Issuer) GIC Account, as
                   applicable; and

            (iv)   following the enforcement of the Funding Security no such
                   investment may be made without the prior written consent of
                   the Security Trustee.

            The Security Trustee and the Cash Manager shall not be responsible
            (save where any loss results from the Security Trustee's or the
            Cash Manager's own fraud, wilful default or gross negligence or
            that of its officers or employees) for any loss occasioned by
            reason of any such Authorised Investments whether by depreciation
            in value or otherwise provided that such Authorised Investments
            were made in accordance with the above provisions; and

       (s)  take such other action or provide any other Cash Management
            Services as is required in the Transaction Documents.

                                      32
<PAGE>

                                  SCHEDULE 2
                  Cash Management and Maintenance of Ledgers

1.     Determination

       (a)  On or before each Distribution Date based on the aggregate amount
            of monies standing to the credit of the Mortgages Trustee
            Transaction Account and the Mortgages Trustee GIC Account as at
            close of business on the preceding day, the Cash Manager shall
            determine each of the following:

            (i)    the amount of Principal Receipts and Revenue Receipts
                   received during the immediately preceding Trust Calculation
                   Period and during each Interim Calculation Period (as
                   defined in the Mortgages Trust Deed), if any, during such
                   immediately preceding Trust Calculation Period;

            (ii)   the amount of any Mortgages Trustee Available Revenue
                   Receipts received during the immediately preceding Trust
                   Calculation Period;

            (iii)  the amount of any net credit on the Non-Flexible
                   Overpayments Sub Ledger;

            (iv)   the amount of Mortgages Trustee Available Revenue Receipts
                   and Principal Receipts to be distributed to Funding and to
                   the Seller on such Distribution Date;

            (v)    whether each of the Issuer Arrears Test, the Issuer Reserve
                   Requirement and the Subordinated Principal Test is
                   satisfied on such date and shall promptly notify the Issuer
                   Cash Manager of such determinations; and

            (vi)   the various amounts, balances and rates to be calculated in
                   accordance with any Basis Rate Swap and/or any Currency
                   Rate Swap, and shall promptly notify each Issuer, each
                   Issuer Cash Manager, the Note Trustee and each Calculation
                   Agent (as defined in each Basis Rate Swap Agreement and
                   Currency Swap Agreement) of such amounts, balances and
                   rates.

       (b)  On or before each Distribution Date (and, in respect of Clause
            1(b)(ii) below, on each Assignment Date and Funding Contribution
            Date), the Cash Manager shall determine each of the following:

            (i)    the amount of any Losses incurred on the Mortgage Loans
                   during the immediately preceding Trust Calculation Period
                   and during each Interim Calculation Period (as defined in
                   the Mortgages Trust Deed), if any, during such immediately
                   preceding Trust Calculation Period;

            (ii)   (the Funding Share, the Seller Share, the Funding Share
                   Percentage and the Seller Share Percentage in accordance
                   with Clause 8

                                      33
<PAGE>

                   (Adjustment of Funding Share Percentage and Seller Share
                   Percentage) of the Mortgages Trust Deed;

            (iii)  to the extent (i) the Seller has sold and assigned New
                   Mortgage Loans, or (ii) Funding has made a Further
                   Contribution, to the Mortgages Trustee during the
                   immediately preceding Trust Calculation Period, the
                   Weighted Average Funding Share Percentage and the Weighted
                   Average Seller Share Percentage (in respect of Revenue
                   Receipts, Principal Receipts and Losses) in accordance with
                   Clause 8.3 (Weighted Average Funding Share Percentage) and
                   Clause 8.7 (Weighted Average Seller Share Percentage),
                   respectively, of the Mortgages Trust Deed; and

            (iv)   the Minimum Seller Share in accordance with Clause 9.2
                   (Fluctuation of Minimum Seller Share on each Distribution
                   Date) of the Mortgages Trust Deed.

       (c)  On each Distribution Date, in relation to the Mortgages Trustee
            Revenue Receipts received from the Mortgages Trustee on such
            Distribution Date, the Cash Manager shall determine each of the
            following amounts:

            (i)    an amount equal to all amounts to be applied on the
                   immediately succeeding Payment Dates for Group 1 Issuers
                   and Group 2 Issuers set forth under items (A)-(D) of the
                   Funding Pre-Enforcement Revenue Priority of Payments or, as
                   the case may be, items (A)-(C) of the Funding
                   Post-Enforcement Priority of Payments, and

            (ii)   (A)  an amount which is equal to the lesser of:

                        (1)  an amount equal to the aggregate of the amounts
                             to be applied on the immediately succeeding
                             Payment Date for all Group 1 Issuers as set forth
                             under items (E)-(Q) of the Funding
                             Pre-Enforcement Revenue Priority of Payments or,
                             as the case may be, items (D)-(G) of the Funding
                             Post-Enforcement Priority of Payments (but
                             excluding any principal amount due under any
                             Intercompany Loan (save that, for the avoidance
                             of doubt, such exclusion shall not apply in
                             respect of any Group 1 Available Revenue Receipts
                             which are applied by any Group 1 Issuer to credit
                             that Issuer's Principal Deficiency Ledgers and
                             thereby reduce the principal payable under that
                             Issuer's Intercompany Loan) and any amount of
                             Deferred Contribution under item (P) of the
                             Funding Pre-Enforcement Revenue Priority of
                             Payments and/or item (F) of the Funding
                             Post-Enforcement Priority of Payments), less all
                             other amounts (not derived from the distribution
                             of Mortgages Trustee Available Revenue Receipts
                             under the Mortgages Trust) which will constitute
                             Group 1

                                      34
<PAGE>

                             Available Revenue Receipts on the immediately
                             succeeding Payment Date; and

                        (2)  an amount (not less than zero) equal to:

<TABLE>
<CAPTION>
<S>                          <C>                             <C>   <C>
                             remaining Mortgages Trustee
                             Available Revenue Receipts      x     Group 1 Share Percentage
                             allocated to Funding
</TABLE>

                   (B)  an amount which is equal to the lesser of:

                        (1)  an amount equal to the aggregate of the amounts
                             to be applied on the immediately succeeding
                             Payment Date for all Group 2 Issuers as set forth
                             under items (E)-(Q) of the Funding
                             Pre-Enforcement Revenue Priority of Payments or,
                             as the case may be, items (D)-(G) of the Funding
                             Post-Enforcement Priority of Payments (but
                             excluding any principal amount due under any
                             Intercompany Loan (save that, for the avoidance
                             of doubt, such exclusion shall not apply in
                             respect of any Group 2 Available Revenue Receipts
                             which are applied by any Group 2 Issuer to credit
                             that Issuer's Principal Deficiency Ledger and
                             thereby reduce the principal payable under that
                             Issuer's Intercompany Loan) and any amount of
                             Deferred Contribution under item (P) of the
                             Funding Pre-Enforcement Revenue Priority of
                             Payments and/or item (F) of the Funding
                             Post-Enforcement Priority of Payments), less all
                             other amounts (not derived from the distribution
                             of Mortgages Trustee Available Revenue Receipts
                             under the Mortgages Trust) which will constitute
                             Group 2 Available Revenue Receipts on the
                             immediately succeeding Payment Date; and

                        (2)  an amount (not less than zero) equal to:

<TABLE>
<CAPTION>
<S>                          <C>                             <C>   <C>
                             remaining Mortgages Trustee
                             Available Revenue Receipts      x     Group 2  Share Percentage
                             allocated to Funding
</TABLE>

            (iii)  either:

                   (A)  an amount in respect of all Group 1 Issuers towards
                        any remaining revenue amounts which will be due and
                        payable (taking into account the amount determined
                        under paragraph 1(c)(ii) above) on the immediately
                        succeeding Payment Date for Group 1 Issuers under such
                        Issuers' Intercompany Loans; or

                   (B)  an amount in respect of all Group 2 Issuers towards
                        any remaining revenue amounts which will be due and
                        payable (taking into account the amount determined
                        under paragraph

                                      35
<PAGE>

                        1(c)(B) above) on the immediately succeeding Payment
                        Date for Group 2 Issuers under such Issuers'
                        Intercompany Loans;

            Following determination of the amounts under this paragraph 1(c),
            the Cash Manager shall allocate the Mortgages Trustee Available
            Principal Receipts to expenses, the Group 1 Issuers and the Group
            2 Issuers by recording such amounts on the Funding Expenses
            Sub-Ledger, the Group 1 Revenue Sub- Ledger or the Group 2 Revenue
            Sub-Ledger, as the case may be, as set forth in paragraph 13
            below.

       (d)  On each Distribution Date in relation to Mortgages Trustee
            Available Principal Receipts received from the Mortgages Trustee
            on such Distribution Date and amounts standing to the credit of
            the Funding Principal Ledger (taking into account amounts already
            standing to the credit of the Group 1 Principal Sub-Ledger and the
            Group 2 Principal Sub-Ledger), the Cash Manager shall determine
            each of the following amounts as follows:-

            (i)    (A)  for each Issuer, an amount by which the Issuer
                        Liquidity Reserve Fund relating to that Issuer will be
                        less than the Issuer Liquidity Reserve Required
                        Amount, in each case prior to the distribution of
                        Group 1 Available Principal Receipts or Group 2
                        Available Principal Receipts, as applicable, on the
                        Payment Date for such Issuer immediately succeeding
                        such Distribution Date; and

                   (B)  for each Issuer, an amount distributable on the
                        immediately succeeding Payment Dates for Group 1
                        Issuers and Group 2 Issuers to any Group 1 and Group 2
                        Issuers in respect of Money Market Notes of such
                        Issuers having Controlled Amortisation Amounts due on
                        such Payment Dates;

            (ii)   (A)  an amount which isequal to the lesser of:-

                        (1)  the principal amount due on the Intercompany
                             Loans of all Group 1 Issuers equal to the
                             Controlled Amortisation Amounts due for non-Money
                             Market Notes, if any, on the Payment Date for
                             Group 1 Issuers immediately succeeding such
                             Distribution Date (in each case determined on the
                             assumption that the Issuer Reserve Requirement,
                             the Issuer Arrears Test and the Subordinated
                             Principal Test are satisfied on that Payment
                             Date); and

                        (2)  an amount equal to:

<TABLE>
<CAPTION>
<S>                          <C>                                    <C>   <C>
                             Mortgages Trustee Principal
                             Receipts plus any amounts
                             standing to the credit of the
                             Funding Principal Ledger (less any     x     Group 1 Share Percentage
                             amounts applied in paragraph (i)
</TABLE>

                                      36
<PAGE>

                             above)

                   (B)  an amount which is equal to the lesser of:

                        (1)  the principal amount due on the Intercompany
                             Loans of all Group 2 Issuers equal to the
                             Controlled Amortisation Amounts due for non-Money
                             Market Notes, if any, on the Payment Date for
                             Group 2 Issuers immediately succeeding such
                             Distribution Date (in each case determined on the
                             assumption that the Issuer Reserve Requirement,
                             the Issuer Arrears Test and the Subordinated
                             Principal Test are satisfied on that Payment
                             Date); and

                        (2)  an amount equal to:

<TABLE>
<CAPTION>
<S>                          <C>                                <C>  <C>
                             Mortgages Trustee Principal
                             Receipts plus any amounts
                             standing to the credit of the
                             Funding Principal Ledger (less     x    Group 2 Share Percentage
                             any amounts applied in
                             paragraph (i) above)
</TABLE>

            (iii)  either:

                   (A)  an amount in respect of all Group 1 Issuers towards
                        any principal amounts remaining which will be due and
                        payable (taking into account the amount determined
                        under paragraphs 1(d)(i)(B) and 1(d)(ii)(A) above) on
                        the immediately succeeding Payment Date under such
                        Issuers' Intercompany Loans (in each case determined
                        on the assumption that the Issuer Reserve Requirement,
                        the Issuer Arrears Test and the Subordinated Principal
                        Test are satisfied on that Payment Date); or

                   (B)  an amount in respect of all Group 2 Issuers towards
                        any principal amounts remaining which will be due and
                        payable (taking into account the amount determined
                        under paragraphs 1(d)(i)(B) and 1(d)(ii)(B) above) on
                        the immediately succeeding Payment Date under such
                        Issuers' Intercompany loans (in each case determined
                        on the assumption that the Issuer Reserve Requirement,
                        the Issuer Arrears Test and the Subordinated Principal
                        Test are satisfied on that Payment Date).

            For purposes of calculating the Group 1 Share Percentage and the
            Group 2 Share Percentage in paragraphs 1(d)(ii)(A)(2) and
            1(d)(ii)(B)(2) above, respectively, the Outstanding Principal
            Balance of the relevant Intercompany Loan shall be deemed to be
            reduced by the amount of: (a) any deficiency recorded on the
            Issuer Principal Deficiency Ledger of that Issuer as at the
            relevant Payment Date, but only to the extent that such deficiency
            has arisen

                                      37
<PAGE>

            as a result of (i) losses on the Mortgage Loans allocated by
            Funding to that Issuer and/or (ii) the application of Funding
            Available Principal Receipts to fund the Issuer Liquidity Reserve
            Fund of that Issuer but not as a result of any other principal
            deficiency of that Issuer; and (b) the Outstanding Principal
            Balance as of such Payment Date of any Special Repayment Notes
            issued by that Issuer.

            Following determination of the amounts under this paragraph 1(d),
            the Cash Manager shall allocate the Mortgages Trustee Available
            Principal Receipts to the Group 1 Issuers and Group 2 Issuers by
            recording such the amounts on the Group 1 Principal Sub- Ledger or
            Group 2 Principal Sub-Ledger, as the case may be, as set forth in
            paragraph 16 below.

       (e)  No later than each Distribution Date immediately prior to each
            Payment Date, the Cash Manager shall determine each of the
            following:

            (i)    the amount of any Group 1 Available Revenue Receipts or
                   Group 2 Available Revenue Receipts, as applicable, to be
                   applied on the relevant Payment Date in accordance with the
                   Funding Pre-Enforcement Revenue Priority of Payments; and

            (ii)   the amount of any Group 1 Available Principal Receipts or
                   Group 2 Available Principal Receipts, as applicable, to be
                   applied on the following Payment Date in accordance the
                   Funding Pre-Enforcement Principal Priority of Payments.

       (f)  No later than each Distribution Date immediately prior to each
            Payment Date, the Cash Manager shall determine each of the
            following:

            (i)    the amount of any Issuer Allocable Revenue Receipts for
                   each Issuer to be applied on the relevant Payment Date in
                   accordance with the Funding Pre-Enforcement Revenue
                   Priority of Payments;

            (ii)   the amount of any Issuer Allocable Principal Receipts for
                   each Issuer to be applied on the following Payment Date in
                   accordance the Funding Pre-Enforcement Principal Priority
                   of Payments; and

            (iii)  the amount of any Group 1 Shared Issuer Revenue Receipts or
                   Group 2 Shared Issuer Revenue Receipts and Group 1 Shared
                   Issuer Principal and Group 2 Receipts Shared Issuer
                   Principal Receipts to be applied on the following Payment
                   Date in accordance with the Funding Priority of Payments.

       (g)  The Cash Manager shall make all the determinations referred to in
            paragraphs 1(a) to (f) herein on the basis of the following
            assumptions:

            (i)    that the amount of any Losses will not increase;

            (ii)   that any debit balance on any Issuer Principal Deficiency
                   Ledger will not increase; and

                                      38
<PAGE>

            (iii)  such other assumptions (including without limitation as to
                   the amount of any payments or provisions to be made in
                   accordance with the applicable Funding Priority of Payments
                   during the period from and including the Distribution Date
                   immediately prior to each Payment Date to and excluding
                   such Payment Date) as the Cash Manager considers
                   appropriate.

            The Cash Manager shall notify the Mortgages Trustee, Funding and
            the Security Trustee on request of any such other assumptions and
            shall take account of any representations made by the Mortgages
            Trustee, Funding and the Security Trustee (as the case may be) in
            relation thereto.

       (h)  The Cash Manager shall:

            (i)    make or procure to be made all returns and filings required
                   to be made by Funding and the Mortgages Trustee;

            (ii)   itself on behalf of Funding and the Mortgages Trustee,
                   provided that such moneys are at the relevant time
                   available to Funding and the Mortgages Trustee, pay all
                   out-of-pocket expenses of Funding and the Mortgages Trustee
                   incurred in the performance of the Cash Manager's duties
                   hereunder including, without limitation, all fees payable
                   to the London Stock Exchange Limited.

       (i)  The Cash Manager shall, if necessary, perform all currency
            conversions free of charge, cost or expense at the relevant
            exchange rate (for the purposes of any calculations referred to
            above, (i) all percentages resulting from such calculations will
            be rounded, if necessary, to the nearest one hundred-thousandth of
            a percentage point (e.g. 9.876541% being rounded down to 9.87654%
            and (ii) any currency amounts used in or resulting from such
            calculations will be rounded in accordance with the relevant
            market practice).

       (j)  Each determination made in accordance with this paragraph 1 shall
            (in the absence of bad faith, wilful default, negligence and
            manifest error) be final and binding on all persons.

2.     Notification of Determinations

       The Cash Manager shall cause each determination of Principal Receipts,
       Revenue Receipts, Losses, Mortgages Trustee Available Revenue Receipts,
       the Funding Share, the Seller Share, the Funding Share Percentage, the
       Seller Share Percentage, the Weighted Average Funding Share Percentage,
       the Weighted Average Seller Share Percentage and the Minimum Seller
       Share to be notified forthwith to the Mortgages Trustee, the
       Beneficiaries and the Security Trustee and will cause each
       determination of Group 1 Available Principal Receipts, Group 2
       Available Principal Receipts, Group 1 Available Revenue Receipts, Group
       2 Available Revenue Receipts and the determinations made under
       paragraphs 1(c) and 1(d) above to be notified forthwith to Funding, the
       Security Trustee and the Issuer Cash Manager.

3.     Priority of Payments for Mortgages Trustee Available Revenue Receipts

                                      39
<PAGE>

       The Cash Manager shall (unless the intended recipient of the relevant
       payment agrees otherwise) on each Distribution Date withdraw Cash from
       the Mortgages Trustee GIC Account and/or, in the case of sums to be
       provided for, retain Cash in the amounts required (to the extent that
       such withdrawal does not cause the Mortgages Trustee GIC Account to
       become overdrawn or, if any amounts are retained by way of provision
       for the relevant liability and are thus not withdrawn, to the extent
       that withdrawal of those amounts that are withdrawn would not, if such
       retained amounts were also to be withdrawn, cause the balance on the
       Mortgages Trustee GIC Account to become overdrawn). The aggregate
       amount of the withdrawal shall equal the Mortgages Trustee Available
       Revenue Receipts on each Distribution Date. The withdrawal shall be
       used to make the payments and provisions in the order of priority set
       out in Clause 10.2 (Distribution of Mortgages Trustee Available Revenue
       Receipts) of the Mortgages Trust Deed (in each case only if and to the
       extent that payments or provisions of a higher priority have been made
       in full).

4.     Priority of Payments for Mortgages Trustee Principal Receipts

       The Cash Manager shall (unless the intended recipient of the relevant
       payment agrees otherwise) on each Distribution Date, (i) withdraw Cash
       from the Mortgages Trustee GIC Account in an amount equal to the
       Mortgages Trustee Principal Receipts (to the extent only that such
       withdrawal does not cause the Mortgages Trustee GIC Account to become
       overdrawn or, if any amounts are retained by way of provision for the
       relevant liability and are thus not withdrawn, to the extent that
       withdrawal of those amounts that are withdrawn would not, if such
       retained amounts were also to be withdrawn, cause the balance on the
       Mortgages Trustee GIC Account to become overdrawn) to make the payments
       in the order of priority set out in Clause 11 of the Mortgages Trust
       Deed (Distribution of Principal Receipts) and/or, (ii) until such time
       as the same may be distributed in accordance with the Mortgages Trust
       Deed, retain Cash in the Mortgages Trustee GIC Account in the amount of
       any net credit on the Non-Flexible Overpayments Sub Ledger.

5.     Priority of Payments for Funding Available Revenue Receipts

       Group 1 Available Revenue Receipts and Group 2 Available Revenue
       Receipts (including Issuer Allocable Revenue Receipts) will be applied
       by the Cash Manager on the relevant Payment Dates until enforcement of
       the Funding Security pursuant to the Funding Deed of Charge or until
       such time as there are no outstanding Funding Secured Obligations, in
       making such payments and provisions in the order of priority set out in
       the Funding Pre-Enforcement Revenue Priority of Payments (in each case
       only if and to the extent that payments or provisions of a higher
       priority have been made in full) as set out in Part I of Schedule 3 to
       the Funding Deed of Charge (as the same may be amended, varied or
       restated from time to time).

6.     Priority of Payments for Funding Available Principal Receipts

       Group 1 Available Principal Receipts and Group 2 Available Principal
       Receipts (including Issuer Allocable Principal Receipts) will be
       applied by the Cash Manager on each Payment Date until enforcement of
       the Funding Security pursuant to the Funding Deed of Charge or until
       such time as there are no outstanding Funding Secured Obligations, in
       making such payments and provisions in the order of priority

                                      40
<PAGE>

       (in each case only if and to the extent that payments or provisions of
       a higher priority have been made in full) set out in Part II of
       Schedule 3 to the Funding Deed of Charge.

7.     Other Payments

       Each of the Beneficiaries and the Cash Manager agrees, and the
       Mortgages Trustee concurs, that (save as otherwise specified below) the
       following payments may be made from the Mortgages Trustee GIC Account
       (to the extent that withdrawal of those amounts would not cause the
       balance of the Mortgages Trustee GIC Account to become overdrawn) on
       any date:

       (a)  if any amount has been received from a Borrower for the express
            purpose of payment being made to a third party for the provision
            of a service (including giving insurance cover) to any of that
            Borrower or the Seller or the Mortgages Trustee, to pay such
            amount when due to such third party or, in the case of the payment
            of an insurance premium, where such third party and the Cash
            Manager have agreed that payment of commission should be made by
            deduction from such insurance premium, to pay such amount less
            such commissions when due to such third party and to pay such
            commission to the Cash Manager and to pay any premiums in respect
            of any Insurance Policy or other insurance policy relating to any
            Mortgage Loan comprised in the Mortgage Portfolio;

       (b)  to pay to any person (including the Cash Manager) any amounts due
            arising from any unintentional overpayment (and not an
            Overpayment) by any person or arising from any reimbursement by
            any person of any such overpayment (including, for the avoidance
            of doubt, where arising from the failure of a direct debit);

       (c)  to pay when due (but subject to any right to refuse or withhold
            payment or of set-off that has arisen by reason of the Borrower's
            breach of the terms of the relevant Mortgage or Mortgage Loan) any
            amount payable to a Borrower under the terms of the Mortgage or
            the Mortgage Loan to which that Borrower is a party, and to pay
            when due any amount payable by the Mortgages Trustee to the Seller
            pursuant to Clauses 3.2, 4.5 and 5.2 of the Mortgage Sale
            Agreement;

       (d)  to pay to the Seller any amounts (including, for the avoidance of
            doubt, any Early Repayment Charges) received and held by the
            Mortgages Trustee on trust for the Seller pursuant to Clause 5
            (Trust of Monies) of the Mortgage Sale Agreement;

       (e)  to pay when due and payable any amounts due and payable by the
            Mortgages Trustee to third parties and incurred without breach by
            the Mortgages Trustee of the Mortgages Trust Deed and not provided
            for payment elsewhere in this paragraph 7;

                                      41
<PAGE>

       (f)  to refund any amounts due arising from the rejection of any
            payments in respect of a Mortgage Loan and any other amounts which
            have not been received by the Mortgages Trustee as cleared funds;
            and

       (g)  to refund to the Seller any amounts which represent amounts
            received from Borrowers but which do not form part of the Mortgage
            Account or comprise unpaid interest as at the relevant Closing
            Date and which are amounts owed by such Borrowers in respect of
            any period prior to the relevant Closing Date as and when
            identified by the Cash Manager and if a Borrower fails to pay the
            full amount that it owes, the Cash Manager shall be obliged to
            refund to the Seller only such portion of the amount which relates
            to any period prior to the relevant Closing Date.

8.     Use of Ledgers

       The Cash Manager shall forthwith record monies received or payments
       made by it on behalf of the Mortgages Trustee or Funding in the ledgers
       in the manner set out in this Agreement. If, at any time, the Cash
       Manager is in any doubt as to which ledger a particular amount should
       be credited or debited, it shall consult with the Security Trustee
       thereon.

       Except in the case of the Funding Principal Deficiency Ledger, a debit
       item shall only be made in respect of any of the Mortgages Trustee
       Ledgers and the Funding Ledgers and the corresponding payment or
       transfer (if any) may only be made from the Mortgages Trustee
       Transaction Account, the Mortgages Trustee GIC Account, the Funding GIC
       Account, the Funding Transaction Account or any Funding (Issuer) GIC
       Account, as the case may be, to the extent that such entry does not
       cause the relevant ledger to have a debit balance. In the case of the
       Funding Principal Deficiency Ledger, a credit item shall only be made
       to the extent that such entry does not cause such ledger to have a
       credit balance.

9.     Revenue Ledger

       The Cash Manager shall ensure that:

       (a)  the following amounts shall be credited to the Revenue Ledger:

            (i)    all Revenue Receipts; and

            (ii)   all interest received by the Mortgages Trustee on the
                   Mortgages Trustee Transaction Account and the Mortgages
                   Trustee GIC Account; and

       (b)  any payment or provision made under paragraph 3 herein shall be
            debited to the Revenue Ledger.

10.    Principal Ledger

       The Cash Manager shall ensure that:

       (a)  all Principal Receipts shall be credited to the Principal Ledger;
            and

                                      42
<PAGE>

       (b)  any payment or provision made under paragraph 4 herein shall be
            debited to the Principal Ledger.

11.    Losses Ledger

       The Cash Manager shall ensure that all Losses shall be recorded in
       the Losses Ledger.

12.    Funding Share/Seller Share Ledger

       The Cash Manager shall ensure that the Current Funding Share and the
       Current Funding Share Percentage of the Trust Property and the Current
       Seller Share and the Current Seller Share Percentage of the Trust
       Property are recorded in the Funding Share/Seller Share Ledger on the
       Initial Closing Date and thereafter on each Distribution Date. In
       addition to the foregoing, if (i) the Seller has assigned New Mortgage
       Loans to the Mortgages Trustee, or (ii) Funding has paid a Further
       Contribution to the Mortgages Trustee to increase the Funding Share of
       the Trust Property, during the Trust Calculation Period immediately
       preceding a Distribution Date, the Cash Manager shall ensure that the
       Current Funding Share and the Current Funding Share Percentage of the
       Trust Property and the Current Seller Share and the Current Seller
       Share Percentage of the Trust Property, as recalculated on each
       Assignment Date and Funding Contribution Date and the Weighted Average
       Funding Share Percentage and the Weighted Average Seller Share
       Percentage, as calculated on such Distribution Date or Funding
       Contribution Date in respect of Revenue Receipts, Principal Receipts
       and Losses, are recorded on the Funding Share/Seller Share Ledger on
       each such Distribution Date or Funding Contribution Date.

13.    Funding Revenue Ledger

       The Cash Manager shall ensure that:

       (c)  the following amounts shall be credited to the Funding Revenue
            Ledger:

            (i)    all Funding Revenue Receipts;

            (ii)   all interest received by Funding in respect of the Funding
                   Bank Accounts, including in respect of any Funding (Issuer)
                   GIC Account, provided that the Cash Manager shall keep a
                   separate record in respect of each Issuer of the amount of
                   interest received by Funding in respect of the Funding
                   (Issuer) GIC Account of such Issuer;

            (iii)  all amounts received by Funding representing income on any
                   of Funding's Authorised Investments;

            (iv)   any amount debited to the Funding Principal Ledger under
                   paragraph 16(b)(ii) herein; and

       (d)  any payment or provision made under paragraph 5 above shall be
            debited to the Funding Revenue Ledger;

       (e)  the amount determined under paragraph 1(c)(i) shall be recorded on
            the Revenue Expense Sub-Ledger on each Distribution Date;

                                      43
<PAGE>

       (f)  the amounts determined under paragraphs (1)(c)(ii) and 1(c)(iv)(A)
            above shall be recorded on the Group 1 Revenue Receipts Sub-Ledger
            on each Distribution Date; and

       (g)  the amounts determined under paragraphs 1(c)(iii) and 1(c)(iv)(B)
            above shall be recorded on the Group 2 Revenue Receipts Sub-Ledger
            on each Distribution Date.

14.    Issuer Reserve Fund Ledger

       If an Issuer Reserve Fund is required to be established, the Cash
       Manager will record on such Issuer Reserve Fund Ledger:

       (a)  an amount initially from that portion of Funding's Contribution to
            the Mortgages Trust which will be retained by Funding and not paid
            to the Mortgages Trustee and deposited into the related Funding
            (Issuer) GIC Account;

       (b)  amounts credited to the relevant Issuer Liquidity Reserve Ledger
            in accordance with the Funding Priority of Payments above; and

       (c)  amounts debited to an Issuer Liquidity Reserve Ledger in order to
            be applied in accordance with the Funding Priority of Payments.

15.    Issuer Liquidity Reserve Ledger

       If an Issuer Liquidity Reserve Fund is required to be established, the
       Cash Manager will record on such Issuer Liquidity Reserve Ledger:

       (a)  an amount funded initially from Funding Available Principal
            Receipts which are allocated to the relevant Issuer in accordance
            with the Funding Pre-Enforcement Principal Priority of Payments up
            to the amount of the Issuer Liquidity Reserve Required Amount and
            such amount will be deposited in the relevant Funding (Issuer) GIC
            Account;

       (b)  amounts credited to the relevant Issuer Liquidity Reserve Ledger
            in accordance with the Funding Priority of Payments above; and

       (c)  amounts debited to the Issuer Liquidity Reserve Ledger in order to
            be applied in accordance with Funding Priority of Payments.

16.    Funding Principal Ledger

       Without prejudice to paragraph 18 below, the Cash Manager shall ensure
       that:

       (a)  the following amounts shall be credited to the Funding Principal
            Ledger:

            (i)    all Funding Principal Receipts;

            (ii)   amounts credited to the Funding Principal Deficiency Ledger
                   under paragraphs 8 and 17 herein; and

                                      44
<PAGE>

            (iii)  any Mortgages Trustee Available Principal Receipts
                   remaining after determining the amounts under paragraphs
                   1(d)(i) through 1(d)(iii) herein;

       (b)  the following amounts shall be debited to the Funding Principal
            Ledger:

            (i)    the aggregate amount of principal repaid on the
                   Intercompany Loan Agreement pursuant to paragraph 6 herein;

       (c)  the amounts determined under paragraphs 1(d)(i)(A) and 1(d)(i)(B)
            (to the extent such amounts relate to Group 1 Issuers) and under
            paragraphs, 1(d)(ii)(A) and 1(d)(iii)(A) above shall be recorded
            on the Group 1 Principal Receipts Sub-Ledger on each Distribution
            Date. PROVIDED that if on any Distribution Date Mortgages Trustee
            Principal Receipts are allocable to both Group 1 and Group 2
            pursuant to paragraph 1(d)(i)(B) above, then the Cash Manager
            shall record such amounts on the Group 1 and Group 2 Principal
            Sub-Ledgers, respectively, in priority corresponding to the Final
            Maturity Dates of the Money Market Notes of the related Issuers,
            beginning with the earliest such Final Maturity Date; and

       (d)  the amounts determined under paragraphs 1d(i)(A) and 1d(i)(B) (to
            the extent such amounts relate to Group 2 Issuers) and under
            paragraphs 1d(ii)(B) and 1d(iii)(B) above shall be recorded on the
            Group 2 Principal Receipts Sub-Ledger on each Distribution Date.
            PROVIDED that if on any Distribution Date Mortgages Trustee
            Principal Receipts are allocable to both Group 1 and Group 2
            pursuant to paragraph 1(d)(i)(B) above, then the Cash Manager
            shall record such amounts on the Group 1 and Group 2 Principal
            Sub-Ledgers, respectively, in priority corresponding to the Final
            Maturity Dates of the Money Market Notes of the related Issuers,
            beginning with the earliest such Final Maturity Date

17.    Funding Principal Deficiency Ledger

       The Cash Manager will establish a Principal Deficiency Ledger for
       Funding and ensure that:

       (a)  on each occasion on which an Issuer Principal Deficiency Ledger is
            credited with respect to (1) Losses and (2) Issuer Liquidity
            Reserve Funds, the Funding Principal Deficiency Ledger is credited
            with respect to such Issuer; and

       (b)  on each occasion on which the principal deficiency of an Issuer is
            reduced with respect to a credit described in (a) above, the
            Funding Principal Deficiency Ledger will record a parallel
            reduction in aggregate principal deficiencies.

18.    Funding Reserve Ledger

       (a)  An amount initially drawn from excess Revenue Receipts distributed
            to Funding from the Mortgages Trust and deposited in the Funding
            GIC Account will be credited to the Funding Reserve Ledger.

                                      45
<PAGE>

       (b)  Amounts shall be credited to the Funding Reserve Ledger in
            accordance with the Funding Priority of Payments above.

       (c)  Amounts shall be debited to the Funding Reserve Ledger on any
            Closing Date in order to be applied in the establishment of
            initial reserves or in payment of expenses in connection with the
            issuance of any New Notes by a New Issuer and on each Payment Date
            in order to be applied in accordance with the Funding Priority of
            Payments.

19.    Intercompany Loan Ledger

       The Cash Manager shall ensure that all payments of interest and
       repayments of principal on each of the Intercompany Loans are recorded
       in the Intercompany Loan Ledger.

20.    Overpayments Ledger

       The Cash Manager shall ensure that:

       (a)  with respect to the Non-Flexible Mortgage Loans:

            (i)    there shall be credited to the Non-Flexible Overpayments
                   Sub Ledger all Overpayments (not being Capital Payments)
                   made on Non-Flexible Mortgage Loans; and

            (ii)   there shall be debited from the Non-Flexible Overpayments
                   Sub Ledger:

                   (A)  all underpayments made by any Borrower on Non-Flexible
                        Mortgage Loans which do not exceed the amount of the
                        Overpayment previously made by such Borrower in the
                        same calendar year; and

                   (B)  on the first Trust Determination Date of each calendar
                        year, all outstanding credits made to the Non-Flexible
                        Overpayments Sub Ledger during the previous calendar
                        year; and

       (b)  all Overpayments on the Flexible Mortgage Loans are recorded in
            the Flexible Overpayments Sub Ledger.

21.    Non-Flexible Underpayments Ledger

       The Cash Manager shall ensure that all amounts debited from the
       Overpayments Ledger under paragraph 20(a)(ii) above shall be recorded
       on the Non-Flexible Underpayments Ledger.

22.    Re-Draws Ledger

       The Cash Manager shall ensure that, with respect to the Flexible
       Mortgage Loans:

                                      46
<PAGE>

       (a)  all Non-Cash Re-Draws are recorded in the Non-Cash Re-Draws Sub
            Ledger; and

       (b)  all Cash Re-Draws are recorded in the Cash Re-Draws Sub Ledger.

23.    Further Draws Ledger

       The Cash Manager shall ensure that, with respect to Personal Secured
       Loans, all Further Draws are recorded in the Further Draws Ledger.

24.    Records

       The Cash Manager shall ensure that a separate record is kept of any
       amount drawn under any Issuer Reserve Fund or Issuer Liquidity Reserve
       Fund.

                                      47
<PAGE>

<TABLE>
<CAPTION>
                                                           SCHEDULE 3A
                                           Form of Mortgages Trustee Quarterly Report

<S>                                                                         <C>                       <C>
Granite Finance Trustees Limited
Memorandum of Account

Period Ended                                                                This Quarter              Prior Quarter
                                                                            (GBP) 000's               (GBP) 000's

Fees Receivable
Fees Payable

Operating Expenses
Taxation
Dividend                                                                    0                         0
Retained profit brought forward                                             0                         0
                                                                            ------------------------- -------------------------
Retained profit for the year                                                0                         0
                                                                            ========================= =========================

Granite Finance Trustees Limited
Balance Sheet

Period Ended
                                                       (GBP)                (GBP)
Fixed Asset Investments

Current Assets
New Mortgage Loans                                     0
Interest Receivable                                    0
Other debtors                                          0
Cash at Bank                                           0
                                                       --------------------
                                                       0
                                                       --------------------
Creditors: Amounts falling due within one year
Accruals                                               0
Interest Payable Accrual                               0
Taxation                                               0
                                                       ====================
                                                       0
                                                       ====================
Net current assets                                                           0

                                                                             =========================
Total Assets less current liabilities                                        0
                                                                             =========================

Share Capital                                                                0
Reserves                                                                     0

                                                                             =========================
                                                                             0
                                                                             =========================

                                                       Diff                  0
</TABLE>

                                                               48
<PAGE>

                                  SCHEDULE 3B

                       Form of Funding Quarterly Report

Granite Finance Funding Limited
Profit & Loss Account

Period Ended                                 This Quarter         Prior Quarter

                                             (GBP) 000's          (GBP) 000's

Interest Receivable -
Mortgages
Interest Receivable -
Cash/ Authorised
Investments
                                             0                    0
Interest Payable -
Intercompany Loan
Interest Payable
                                             0                    0

Net Operating Income                         0                    0

Other Income

Operating Expenses
Deferred Consideration

Profit/loss on ordinary                      0                    0
activities before tax

Taxation

Profit/loss on ordinary                      0                    0
activities after tax

Dividend                                     0                    0

Retained profit brought                      0                    0
forward

Retained profit for the                      0                    0
year

                                                               49
<PAGE>

<TABLE>
<CAPTION>
Granite Finance Funding Limited
Balance Sheet

Period Ended
                                                           (GBP) 000's           (GBP) 000's
<S>                                                        <C>                   <C>
Fixed Asset Investments

Beneficial Interest in Mortgage Portfolio                                        0

Current Assets
Interest Receivable                                        0
Deferred Expenditure (costs of Securing)                   0
Other debtors                                              0
Cash at Bank                                               0

Creditors: Amounts falling due within one year
Accruals                                                   0
Deferred Consideration Creditor                            0
Interest Payable Accrual                                   0
Taxation                                                   0
                                                           ---------------------
                                                           0
                                                           ---------------------

Net current assets                                                               0

Creditors: Amounts falling due after one year
Intercompany Loan                                                                0
Start-up Loan(s) (specify)                                                       0

                                                                                 ----------------------
Total Assets less current liabilities                                            0
                                                                                 ======================

Share Capital                                                                    0
Reserves                                                                         0

                                                                                 ----------------------
                                                                                 0
                                                                                 ======================

                                                           Diff                  0
</TABLE>

                                                               50
<PAGE>

<TABLE>
<CAPTION>
<S>                                                               <C>
Granite Finance Funding Limited
Notes to Balance Sheet

Period Ended

Balance on Cash Accumulation Ledger                               0

Available Credit Enhancement

Reserve Fund at closing
Last Quarter Closing Reserve Fund
Drawings to make a bullet repayment
Other drawings
Closing Reserve Balance
Target Reserve Fund

Issuer Principal Deficiency Ledger                                AAA                      AA                  BBB

Opening PDL Balance                                               0                        0                   0
Losses this Quarter                                               0                        0                   0
PDL top up from Revenue Income                                    0                        0                   0
Closing PDL Balance                                               0                        0                   0

Subordinated Loan Outstanding

Initial Balance
Last Quarter Closing Outstanding
Accrued Interest
Repayments Made
Closing Balance
</TABLE>

                                                               51
<PAGE>

                                  SCHEDULE 4

                  Cash Manager Representations and Warranties

The Cash Manager makes the following representations and warranties to each of
the Mortgages Trustee, Funding and the Security Trustee:

1.     Status: It is a public limited company duly incorporated, validly
       existing and registered under the laws of the jurisdiction in which it
       is incorporated, capable of being sued in its own right and not subject
       to any immunity from any proceedings, and it has the power to own its
       property and assets and to carry on its business as it is being
       conducted.

2.     Powers and authority: It has the power to enter into, perform and
       deliver, and has taken all necessary corporate and other action to
       authorise the execution, delivery and performance by it of each of the
       Transaction Documents to which it is or will be a party, and each such
       Transaction Document has been duly executed and delivered by it.

3.     Legal validity: Each Transaction Document to which it is or will be a
       party constitutes or when executed in accordance with its terms will
       constitute, a legal, valid and binding obligation.

4.     Non-conflict: The execution by it of each of the Transaction Documents
       to which it is a party and the exercise by it of its rights and the
       performance of its obligations under such Transaction Documents will
       not:

       (a)  conflict with any document which is binding upon it or any of its
            assets;

       (b)  conflict with its constitutional documents; or

       (c)  conflict with any law, regulation or official or judicial order of
            any government, governmental body or court, domestic or foreign,
            having jurisdiction over it.

5.     No litigation: It is not a party to any material litigation,
       arbitration or administrative proceedings and, to its knowledge, no
       material litigation, arbitration or administrative proceedings are
       pending or threatened against it.

6.     Consents and Licenses: All governmental consents, licences and other
       approvals and authorisations required in connection with the entry
       into, performance, validity and enforceability of, and the transactions
       contemplated by, the Transaction Documents have been obtained or
       effected (as appropriate) and are in full force and effect.

7.     Solvency: No Insolvency Event has occurred in respect of the Cash
       Manager, and the Cash Manager is not insolvent.

8.     Financial Statements: The most recent financial statements of the Cash
       Manager:

                                      52
<PAGE>

       (a)  were prepared in accordance with accounting principles generally
            accepted in England and Wales consistently applied;

       (b)  disclose all liabilities (contingent or otherwise) and all
            unrealised and or anticipated losses of the Cash Manager; and

       (c)  save as disclosed therein, give a true and fair view of the
            financial condition and operations of the Cash Manager during the
            relevant financial year.

9.     No Adverse Change: Since the date as of which the most recent financial
       statements of the Cash Manager were stated to be prepared, there has
       been:

       (a)  no significant change in the financial position of the Cash
            Manager; and

       (b)  no material adverse change in the financial position or prospects
            of the Cash Manager.

10.    Ranking of Claims:

       Under the laws of England and Wales in force as at the date of making
       this representation, claims against the Cash Manager under the
       Transaction Documents will rank at least pari passu with the claims of
       all its other unsecured and unsubordinated creditors, save those whose
       claims are preferred solely by any bankruptcy, liquidation or other
       similar laws of general application.

11.    Information in Prospectus and Offering Circular:

       All information in the Prospectus and the Offering Circular with regard
       to the Cash Manager are true and accurate in all material respects and
       not misleading in any material respect.

The Cash Manager has made all proper inquiries to ascertain and to verify the
foregoing.

                                      53
<PAGE>

                                EXECUTION PAGE

as Cash Manager
EXECUTED for and on behalf of               )
NORTHERN ROCK PLC                           )
by:                                         )

--------------------------
Authorised Signatory

Name:

Title:

as Seller
EXECUTED for and on behalf of               )
NORTHERN ROCK PLC                           )
by:                                         )

--------------------------
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of               )
GRANITE FINANCE TRUSTEES LIMITED            )
by:                                         )

--------------------------
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of               )
GRANITE FINANCE FUNDING LIMITED             )
by:                                         )

--------------------------
Authorised Signatory

Name:

Title:

                                      54
<PAGE>

EXECUTED for and on behalf of               )
THE BANK OF NEW YORK                        )
by:                                         )

--------------------------
Authorised Signatory

Name:

Title:

                                      55

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