Document:

Exhibit 4.3

                            Dated 22 September 2004
                            -----------------------

                               NORTHERN ROCK PLC
                                   as Seller

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                        GRANITE FINANCE FUNDING LIMITED

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

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

                            MORTGAGE SALE AGREEMENT
                            NINTH 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 22 September 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 Seller and in its capacity as a Beneficiary;

(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)   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 BR005916) at 69 Park Lane, Croydon CR9
      1TQ in its capacity as a Beneficiary; and

(4)   THE BANK OF NEW YORK a New York banking corporation whose London branch
      address is at 48th Floor, One Canada Square, 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 Mortgages Trustee certain
      mortgage loans, together with the benefit of the related security for
      the same, on the terms and subject to the conditions set out in the
      Mortgage Sale Agreement dated 26 March 2001 among the parties hereto (as
      amended, varied, novated or supplemented from time to time, the
      "Mortgage Sale Agreement").

(C)   The parties have agreed to amend and restate the Mortgage Sale Agreement
      (the "First Amended and Restated Mortgage Sale 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").

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

(E)   The parties have agreed to amend and restate the Second Amended and
      Restated Mortgage Sale Agreement (the "Third Amended and Restated
      Mortgage Sale Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 20 March 2002 (the "Third Deed of
      Amendment and Restatement").

(F)   The parties have agreed to amend and restate the Third Amended and
      Restated Mortgage Sale Agreement (the "Fourth Amended and Restated
      Mortgage Sale Agreement") pursuant to the

<PAGE>

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

(G)   The parties have agreed to amend and restate the Fourth Amended and
      Restated Mortgage Sale Agreement (the "Fifth Amended and Restated
      Mortgage Sale Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 14 April 2003 (the "Fifth Deed of
      Amendment and Restatement").

(H)   The parties have agreed to amend and restate the Fifth Amended and
      Restated Mortgage Sale Agreement (the "Sixth Amended and Restated
      Mortgage Sale Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 21 May 2003 (the "Sixth Deed of
      Amendment and Restatement").

(I)   The parties have agreed to amend and restate the Sixth Amended and
      Restated Mortgage Sale Agreement (the "Seventh Amended and Restated
      Mortgage Sale Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 26 January 2004 (the "Seventh Deed of
      Amendment and Restatement").

(J)   The parties have agreed to amend and restate the Seventh Amended and
      Restated Mortgage Sale Agreement (the "Eighth Amended and Restated
      Mortgage Sale Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 28 January 2004 (the "Eighth Deed of
      Amendment and Restatement").

(K)   The parties now wish to amend and restate the Eighth Amended and
      Restated Mortgage Sale Agreement.

(L)   With effect from the date hereof, the provisions of the Mortgage Sale
      Agreement, the First Amended and Restated Mortgage Sale Agreement, the
      Second Amended and Restated Mortgage Sale Agreement, the Third Amended
      and Restated Mortgage Sale Agreement, the Fourth Amended and Restated
      Mortgage Sale Agreement, the Fifth Amended and Restated Mortgage Sale
      Agreement, the Sixth Amended and Restated Mortgage Sale Agreement, the
      Seventh Amended and Restated Mortgage Sale Agreement, the Eighth Amended
      and Restated Mortgage Sale Agreement and this Deed shall be read and
      construed as one document.

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 Ninth Amendment and Restatement Deed made on 22 September 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 Mortgage Sale 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, the Fifth Deed of

                                       2
<PAGE>

      Amendment and Restatement, the Sixth Deed of Amendment and Restatement,
      the Seventh Deed of Amendment and Restatement, the Eighth Deed of
      Amendment and Restatement and pursuant hereto shall be referred to
      herein as the "Amended and Restated Mortgage Sale Agreement".

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

2.    AMENDMENTS TO THE EIGHTH AMENDED AND RESTATED MORTGAGE SALE AGREEMENT

      Upon execution of this Deed by the parties hereto, the Eighth Amended
      and Restated Mortgage Sale 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 Mortgage Sale Agreement 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.

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.

 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.

                                       3
<PAGE>

<TABLE>
<CAPTION>

<S>                                            <C>
Executed by
NORTHERN ROCK PLC
as its deed as follows:                          By
Signed for and on its behalf by one of its         -------------------------------------
duly authorised attorneys/signatories              Duly Authorised Attorney/Signatory

                                               Name
                                                   -------------------------------------

Signature
             --------------------------------
             Witness

Full name
             --------------------------------
Occupation
             --------------------------------
Address      Woolgate Exchange
             --------------------------------
             25 Basinghall Street
             --------------------------------
             London
             --------------------------------
             EC2V 5HA
             --------------------------------

Executed by
GRANITE FINANCE FUNDING LIMITED
as its deed as follows:                          By
Signed for and on its behalf by one of its
directors and by another of its                    -------------------------------------
directors/its secretary secretary                  Director

                                               Name
                                                   -------------------------------------

                                                 By
                                                   -------------------------------------
                                                   Director/Secretary

                                               Name
                                                   -------------------------------------

Executed by                                      By
GRANITE FINANCE TRUSTEES LIMITED                   -------------------------------------
as its deed as follows:                            Director
Signed for and on its behalf by one of its
directors and by another of its directors/its
secretary
                                               Name
                                                   -------------------------------------

                                                 By
                                                   -------------------------------------
                                                   Director/Secretary

                                               Name
                                                   -------------------------------------

                                       4
<PAGE>

Executed by
THE BANK OF NEW YORK
as its deed as follows:                          By
                                                   -------------------------------------
Signed for and on its behalf by one of its         Duly Authorised Attorney/Signatory
duly authorised attorneys/signatories

                                               Name
                                                   -------------------------------------

</TABLE>

                                       5
<PAGE>

                                  Appendix 1

                 Amended and Restated Mortgage Sale Agreement

                                       6

<PAGE>

                            Dated 22 September 2004
                            -----------------------

                               NORTHERN ROCK PLC

                                   as Seller

                       GRANITE FINANCE TRUSTEES LIMITED

                             as Mortgages Trustee

                        GRANITE FINANCE FUNDING LIMITED

                                    - and -

                             THE BANK OF NEW YORK

                              as Security Trustee

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

                                 NINTH AMENDED
                            MORTGAGE SALE 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 Construction.........................................4

2.    Sale and Purchase of Initial Mortgage Portfolio......................5

3.    Initial Closing Date.................................................5

4.    Sale and Purchase of New Mortgage Portfolios.........................7

5.    Trust of Monies.....................................................14

6.    Perfection of the Assignment........................................15

7.    Undertakings........................................................17

8.    Warranties and Repurchase by the Seller.............................21

9.    Further Assurance...................................................27

10.   Consequences of Breach..............................................27

11.   Subordination.......................................................27

12.   Non-Merger..........................................................27

13.   No Agency or Partnership............................................27

14.   Payments............................................................28

15.   Assignment..........................................................28

16.   Security Trustee....................................................28

17.   New Intercompany Loans..............................................29

18.   Non Petition Covenant; Limited Recourse.............................29

19.   Amendments and Waiver...............................................30

20.   Notices.............................................................31

21.   Third Party Rights..................................................31

22.   Execution in Counterparts; Severability.............................31

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

24.   Process Agent.......................................................32

25.   Appropriate Forum...................................................32

26.   Transaction Documents...............................................33

                                       2
<PAGE>

SCHEDULE 1 REPRESENTATIONS AND WARRANTIES.................................35

SCHEDULE 2 FORMS OF TRANSFERS: REGISTERED AND UNREGISTERED LAND AND
      SCOTTISH TRANSFERS..................................................44

Part 1  FORM OF TRANSFER (REGISTERED LAND - ENGLAND AND WALES)............45

Part 2  FORM OF TRANSFER (UNREGISTERED LAND - ENGLAND AND WALES)..........46

Part 3  FORM OF TRANSFER (LAND REGISTER - SCOTLAND).......................48

Part 4  FORM OF TRANSFER (SASINE REGISTER - SCOTLAND).....................50

SCHEDULE 3 ASSIGNMENT OF INSURANCE CONTRACTS..............................52

SCHEDULE 4 INSURANCE CONTRACTS............................................54

SCHEDULE 5 Part 1 ASSIGNMENT OF GUARANTEES................................55

Part 2  ASSIGNATION OF GUARANTEES.........................................57

SCHEDULE 6 NEW MORTGAGE PORTFOLIO NOTICE..................................60

SCHEDULE 7 LOAN REPURCHASE NOTICE.........................................63

SCHEDULE 8 FORM OF NOTIFICATION TO BORROWERS..............................65

SCHEDULE 9 OFFER UNDER CLAUSE 8.6 (REPURCHASE OF FIXED RATE MORTGAGE
      LOANS)..............................................................66

SCHEDULE 10  POWER OF ATTORNEY IN FAVOUR OF THE MORTGAGES TRUSTEE,
      FUNDING AND THE SECURITY TRUSTEE....................................67

SCHEDULE 11  FORM OF SCOTTISH TRUST DEED..................................70

SCHEDULE 12  LENDING CRITERIA.............................................77

SCHEDULE 13  STANDARD DOCUMENTATION.......................................80

APPENDIX A THE INITIAL MORTGAGE LOAN PORTFOLIO............................81

                                       3
<PAGE>

THIS NINTH AMENDED MORTGAGE SALE AGREEMENT DATED  22 SEPTEMBER  2004 FURTHER
AMENDS  AND  RESTATES  THE  MORTGAGE  SALE  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 Seller and in its capacity as a Beneficiary;

(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 the Mortgages Trustee;

(3)   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 BR005916) at 69 Park Lane, Croydon CR9
      1TQ in its capacity as a Beneficiary; and

(4)   THE BANK OF NEW YORK a New York banking corporation whose London branch
      address is at 48th Floor, One Canada Square, 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 agreed to sell and assign to the Mortgages Trustee
      certain mortgage loans, together with the benefit of the related
      security for the same, on the terms and subject to, the conditions set
      out in this Mortgage Sale Agreement (the "Agreement").

(C)   The Mortgages Trustee has agreed to hold certain of the above mentioned
      mortgage loans as bare trustee for the Beneficiaries upon, with and
      subject to the trusts, powers and provisions of the Mortgages Trust
      Deed.

IT IS HEREBY AGREED AS FOLLOWS:

1.    Definitions and Construction

1.1.  The provisions of the Master Definitions Schedule as amended and
      restated by (and appearing in Appendix 1 to) the Master Definitions
      Schedule Ninth Amendment and Restatement Deed made on 22 September 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.

                                       4
<PAGE>

2.    Sale and Purchase of Initial Mortgage Portfolio

2.1   Agreement to Assign: Subject to Clause 2.2 (Conditions), in
      consideration of the Purchase Price for the Initial Mortgage Portfolio
      (which shall be paid in accordance with Clause 3.3 (Effect of Payment of
      Initial Purchase Price)) and the covenant of the Mortgages Trustee to
      hold the Trust Property upon trust for the Seller and Funding as
      beneficiaries of the Mortgages Trust upon, with and subject to all the
      trusts, powers and provisions of the Mortgages Trust Deed and the
      Mortgages Trustee's agreement in Clause 3.5 (Early Repayment Charges) to
      pay to the Seller any and all Early Repayment Charge Receipts, the
      Seller hereby agrees to sell and assign the Initial Mortgage Portfolio
      to the Mortgages Trustee on the Initial Closing Date with full title
      guarantee.

2.2   Conditions: The obligation of the Seller under Clause 2.1 (Agreement to
      Assign) shall be subject to and conditional upon:

      (a)   the issue by the First Issuer of the Notes on the Initial Closing
            Date and the borrowing by Funding of the amount provided for under
            the First Issuer Intercompany Loan Agreement;

      (b)   the constitution of the Mortgages Trust on or prior to the Initial
            Closing Date;

      (c)   the Transaction Documents having been executed and delivered by
            the parties thereto on or before the Initial Closing Date or, in
            the case of any Transaction Documents which are to be executed
            immediately after the Initial Closing Date, the same having been
            executed and being available for delivery and none of the parties
            knowing of any reason why the same should not be delivered
            immediately thereafter;

      (d)   the payment of the Initial Contribution by Funding to the
            Mortgages Trustee in accordance with the terms of the Mortgages
            Trust Deed; and

2.3   the payment of the Initial Purchase Price by the Mortgages Trustee to
      the Seller in accordance with paragraph (a) of Clause 3.2 (Purchase
      Price).

3.    Initial Closing Date

3.1   Initial Closing and Conditions Precedent: A meeting shall take place on
      the Initial Closing Date at the offices of Brown & Wood, 7 Princes
      Court, London EC2R 8AQ, or such offices as the parties may agree, at
      which the Seller shall deliver to the Security Trustee (upon request),
      Funding and the Mortgages Trustee or the representative of such party
      (or procure such delivery to such party of) the following documents:

      (a)   an original power of attorney in the form set out in Schedule 10
            (Power of Attorney in favour of the Mortgages Trustee, Funding and
            the Security Trustee) duly executed by the Seller;

      (b)   a certificate of solvency in relation to the Seller dated as at
            the Initial Closing Date (in the form of the agreed draft) duly
            executed by the Seller;

                                       5
<PAGE>

      (c)   a list of the Mortgage Loans in the Initial Mortgage Portfolio;

      (d)   an assignment of the Insurance Contracts to the extent that such
            Insurance Contracts relate to the Initial Mortgage Portfolio in
            the form set out in Schedule 3 (Assignment of Insurance Contracts)
            duly executed by the Seller; and

      (e)   a certified copy of the board minutes of the securitisation
            sub-committee of the Seller authorising its duly appointed
            representatives to agree the sale and assignment of the Initial
            Mortgage Portfolio and authorising the execution and performance
            of this Agreement, the Mortgages Trust Deed, the Administration
            Agreement, the other Transaction Documents and all of the
            documentation to be entered into pursuant to the Transaction
            Documents.

3.2   Purchase Price: Subject to fulfilment of the conditions referred to in
      paragraphs (a) to (and including) (d) of Clause 2.2 (Conditions) and
      Clause 3.1 (Initial Closing and Conditions Precedent), the Mortgages
      Trustee shall pay the Purchase Price for the Initial Mortgage Portfolio
      to the Seller, in the manner that the Seller directs, for value, as
      follows:

      (a)   the Initial Purchase Price for the Initial Mortgage Portfolio
            shall be paid by the Mortgages Trustee to the Seller on the
            Initial Closing Date (which Initial Purchase Price shall be paid
            by the Mortgages Trustee from funds received by the Mortgages
            Trustee from Funding on such date in respect of Funding's Initial
            Contribution for the Funding Share of the Closing Trust Property
            pursuant to the Mortgages Trust Deed);

      (b)   subject to and in accordance with the Mortgages Trustee Revenue
            Priority of Payments, an amount of Deferred Purchase Price in
            respect of the Mortgage Portfolio shall be paid by the Mortgages
            Trustee to the Seller on each Distribution Date but only from and
            to the extent (if any) of any Relevant Distribution (as defined
            under paragraph (b) of Clause 4.2 (Consideration provided by
            Funding) of the Mortgages Trust Deed) available for payment on
            such date and in an amount equal to the Deferred Contribution for
            the Funding Share of the Trust Property paid by Funding to the
            Mortgages Trustee on such date or in respect of which the payment
            of such Deferred Contribution is otherwise satisfied on such date
            in accordance with the Mortgages Trust Deed; and

      (c)   a final amount of Deferred Purchase Price in respect of the
            Mortgage Portfolio shall be paid by the Mortgages Trustee to the
            Seller following the receipt by the Mortgages Trustee from Funding
            of any Final Deferred Contribution, which payment shall be in an
            amount equal to such Final Deferred Contribution for the Funding
            Share of the Trust Property paid by Funding to the Mortgages
            Trustee or in respect of which the payment of such Final Deferred
            Contribution is otherwise satisfied in accordance with the
            Mortgages Trust Deed.

3.3   Effect of Payment of Initial Purchase Price: The parties hereto
      acknowledge that the effect of the payment to the Seller by the
      Mortgages Trustee of the Initial Purchase Price on the Initial Closing
      Date will be the assignment to the Mortgages Trustee of the beneficial
      ownership of, and all of the Seller's beneficial right, title, interest
      and benefit in and to, the

                                       6
<PAGE>

      Initial Mortgage Portfolio subject to the terms and provisions of the
      Mortgages Trust Deed, which assignment will be perfected upon the
      occurrence of any of the events set forth in Clause 6 (Perfection of the
      Assignment) and the transfer to the Mortgages Trustee of legal title to
      the Initial Mortgage Portfolio in accordance with Clause 6 (Perfection
      of the Assignment).

3.4   Documents: The Seller undertakes that from the Initial Closing Date
      until the perfection of the assignment in accordance with Clause 6.1
      (Perfection Events) and delivery of the Title Deeds in accordance with
      Clause 6.2 (Perfection), the Seller shall hold the deeds and documents
      constituting the Title Deeds and Mortgage Loan Files and all other
      certificates, notices, policies, endorsements and other matters
      necessary to establish title thereto relating to the Mortgage Portfolio
      that are in its possession or under its control or held to its order to
      the order of the Mortgages Trustee or the Security Trustee or as the
      Mortgages Trustee or the Security Trustee shall direct.

3.5   Early Repayment Charges: The Mortgages Trustee hereby agrees to pay to
      the Seller as part of the Deferred Purchase Price any and all Early
      Repayment Charge Receipts received by the Mortgages Trustee in respect
      of the Mortgage Loans included in the Initial Mortgage Portfolio
      PROVIDED THAT, if any Mortgage Loans in respect of which Early Repayment
      Charges are payable are the subject of a trust pursuant to Clause 5.1
      (Trust in favour of Mortgages Trustee), the Seller, the Mortgages
      Trustee, Funding and the Security Trustee agree that the benefit of any
      Early Repayment Charges payable under such Mortgage Loan shall, on the
      date of payment to the Seller of the related Early Repayment Charge
      Receipts, be released from such trust.

3.6   Insurance: The Seller shall as soon as reasonably practical after the
      sale and assignment of the Initial Mortgage Portfolio on the Initial
      Closing Date procure that the respective interests of the Mortgages
      Trustee, Funding and the Security Trustee are noted by the relevant
      insurers in relation to each Insurance Contract.

4.    Sale and Purchase of New Mortgage Portfolios

4.1   Agreement to Assign: Subject to fulfilment of the conditions set out in
      Clauses 2.2 (Conditions), 3.1 (Initial Closing and Conditions
      Precedent), 4.2 (Conditions to Effecting an Assignment of New Mortgage
      Loans) and 4.3 (No Further Assignment), in consideration of either:

      (a)   the Purchase Price, if any is payable (which if it is payable
            shall be paid in accordance with Clause 4.5 (Purchase Price)), for
            the New Mortgage Portfolio and the covenant by the Mortgages
            Trustee to hold the Trust Property upon trust for the Seller and
            Funding as beneficiaries of the Mortgages Trust, upon, and with
            and subject to the trusts, powers and provisions of the Mortgages
            Trust Deed; or

      (b)   the covenant by the Mortgages Trustee to hold the Trust Property
            upon trust for the Seller and Funding as beneficiaries of the
            Mortgages Trust upon, and with and subject to the trusts, powers
            and provisions of the Mortgages Trust Deed,

                                       7
<PAGE>

      and (in either case) the Mortgages Trustee's agreement in Clause 4.8
      (Early Repayment Charges) to pay to the Seller any and all Early
      Repayment Charge Receipts, if the Seller shall at any time and from time
      to time serve a properly completed New Mortgage Portfolio Notice as set
      out in Schedule 6 (New Mortgage Portfolio Notice) on the Mortgages
      Trustee and Funding with a copy (upon request) to the Security Trustee
      (such service to be in the Seller's sole discretion), then on the
      Assignment Date specified in the New Mortgage Portfolio Notice the
      Seller agrees that it shall sell and assign to the Mortgages Trustee the
      relevant New Mortgage Portfolio with full title guarantee (or, in
      relation to assets and rights situated in or governed by the law of
      Scotland, with absolute warrandice), PROVIDED THAT (a) the Seller hereby
      covenants and undertakes that it will not sell and assign New Mortgage
      Loans to the Mortgages Trustee during any Trust Calculation Period prior
      to the Distribution Date in such Trust Calculation Period, and (b) the
      Seller hereby agrees that it is only permitted to make one sale and
      assignment of New Mortgage Loans to the Mortgages Trustee during any
      Trust Calculation Period.

4.2   Conditions to Effecting an Assignment of New Mortgage Loans: The
      conditions to be met as at each Assignment Date in order to effect a
      sale and assignment of New Mortgage Loans are:

      (a)   the aggregate Arrears of Interest in respect of all of the
            Mortgage Loans in the Mortgages Trust, as a percentage of the
            aggregate gross interest due during the previous 12 months on all
            Mortgage Loans outstanding during all or part of such period, does
            not exceed 2 per cent., or such other percentage as agreed to by
            the Rating Agencies on such Assignment Date. "Arrears of Interest"
            for this purpose in respect of a Mortgage Loan on any date means
            the aggregate amount overdue on the Mortgage Loan on that date,
            but only where such aggregate amount overdue equals or exceeds an
            amount equal to the Monthly Payment then due on the Mortgage Loan
            and such amount has been overdue for an entire calendar month;

      (b)   the long term, unsecured, unguaranteed and unsubordinated debt
            obligations of the Seller are rated no lower than A3 by Moody's
            and A- by Fitch at the time of, and immediately following, the
            assignment of the New Mortgage Loans to the Mortgages Trustee;

      (c)   on the relevant Assignment Date, the aggregate Current Balance of
            the Mortgage Loans in the Mortgages Trust, in respect of which the
            aggregate amount is then in arrears for at least 3 months, is less
            than 4 per cent. of the aggregate Current Balance of all Mortgage
            Loans in the Mortgages Trust on such Assignment Date, unless the
            Rating Agencies have confirmed that the then current ratings of
            the Notes will not be adversely affected;

      (d)   the Lending Criteria applicable at the time of origination of each
            relevant New Mortgage Loan have been applied to the New Mortgage
            Loan and to the circumstances of the Borrower at the time the New
            Mortgage Loan was made, provided that material variations from
            such Lending Criteria may occur so long as the Rating Agencies
            have been notified of any such material variations;

                                       8
<PAGE>

      (e)   no New Mortgage Loan has on the relevant Assignment Date an
            aggregate amount in arrears which is greater than the amount of
            the Monthly Payment then due;

      (f)   the Rating Agencies have not provided written confirmation to the
            Mortgages Trustee, the Security Trustee and the Issuer that the
            assignment to the Mortgages Trustee of the New Mortgage Loans on
            the Assignment Date will adversely affect the then current ratings
            of the existing Notes of any Issuer (provided that, in respect of
            the assignment by the Seller to the Mortgages Trustee of a New
            Mortgage Portfolio in connection with the issuance by a New Issuer
            of New Notes and the drawing by Funding of a New Intercompany
            Loan, the condition to be met at the relevant Assignment Date of
            such New Mortgage Portfolio will be that the Rating Agencies have
            confirmed in writing to the Mortgages Trustee, the Security
            Trustee and the Issuer that the assignment to the Mortgages
            Trustee of the New Mortgage Portfolio on such Assignment Date will
            not adversely affect the then current ratings of the existing
            Notes of any Issuer);

      (g)   the aggregate Current Balance of New Mortgage Loans transferred in
            any one Interest Period does not exceed 10 per cent. of the
            aggregate Current Balance of Mortgage Loans in the Mortgages Trust
            as at the beginning of that Interest Period;

      (h)   each Issuer Reserve Fund is fully funded on the relevant
            Assignment Date up to the relevant required amount or, if any
            Issuer Reserve Fund is not so fully funded, no payments have been
            made from such Issuer Reserve Fund;

      (i)   no Intercompany Loan Enforcement Notice has been served in respect
            of any Intercompany Loan;

      (j)   the assignment of the New Mortgage Portfolio on the relevant
            Assignment Date does not result in the product of WAFF and WALS
            for the Mortgage Portfolio after such purchase, calculated on the
            relevant Assignment Date in the same way as for the Initial
            Mortgage Portfolio (or as agreed by the Administrator and the
            Rating Agencies from time to time), exceeding the product of WAFF
            and WALS for the Mortgage Portfolio calculated on the most recent
            preceding Closing Date plus 0.35 per cent.;

      (k)   to the extent necessary, each Issuer has entered into appropriate
            hedging arrangements in respect of such New Mortgage Loans before
            such Mortgage Loans are assigned to the Mortgage Trust;

      (l)   no event of default under the Transaction Documents has occurred
            which is continuing as at the relevant Assignment Date;

      (m)   the weighted average yield on the Mortgage Portfolio together with
            the New Mortgage Portfolio to be assigned to the Mortgages Trustee
            on the relevant Assignment Date is not less than LIBOR for
            three-month sterling deposits plus [0.50] per cent., taking into
            account the weighted average yield on the Mortgage Loans and the
            margins on any Basis Rate Swaps as at the relevant Assignment
            Date;

                                       9
<PAGE>

      (n)   the assignment of the New Mortgage Portfolio on the relevant
            Assignment Date does not result in the weighted average loan to
            value ratio of Mortgage Loans in the Mortgage Portfolio on the
            relevant Assignment Date (after the purchase of the New Mortgage
            Portfolio) after application of the LTV Test on the relevant
            Assignment Date exceeding the loan to value ratio (based on the
            LTV Test) of Mortgage Loans in the Mortgage Portfolio on the most
            recent preceding Closing Date plus 0.25 per cent.;

      (o)   no New Mortgage Loan has a maturity date on or after January 2039;

      (p)   the related Borrower under each New Mortgage Loan has made at
            least one Monthly Payment;

      (q)   for so long as any Notes issued by any Issuer that have a Final
            Repayment Date earlier than January 2041 are outstanding, the
            assignment of New Mortgage Loans to the Mortgages Trustee may only
            occur if, following such assignment, the aggregate number of
            Repayment Mortgage Loans in the Mortgage Portfolio is greater than
            or equal to 25 per cent. of the aggregate number of Mortgage Loans
            in the Mortgage Portfolio;

      (r)   the Rating Agencies have provided written confirmation that the
            then current ratings on the Notes would not be adversely affected
            by the assignment to the Mortgages Trustee of a New Mortgage Loan
            in respect of a mortgage loan product having characteristics
            and/or features that differ materially from the characteristics
            and/or features of the Mortgage Loans in the Initial Mortgage
            Portfolio;

      (s)   the Seller shall as at the relevant Assignment Date make the
            Representations and Warranties (which shall apply to Personal
            Secured Loans except where specifically excluded) to the Mortgages
            Trustee, Funding and the Security Trustee in relation to each New
            Mortgage Loan in the New Mortgage Portfolio being sold on the
            relevant Assignment Date in accordance with Clause 8 (Warranties
            and Repurchase by the Seller) and such Representations and
            Warranties must be true in relation to each New Mortgage Loan (but
            if such Representation and Warranties are only discovered to be
            untrue after the relevant Assignment Date, the Mortgages Trustee's
            only remedy shall be under Clause 7 (Undertakings); and

      (t)   following the purchase by the Mortgages Trust of any New Mortgage
            Portfolio, the aggregate Current Balance of Mortgage Loans in the
            Mortgages Trust that are subject to a maximum rate of interest and
            which charge interest at the lesser of the Seller's Standard
            Variable Rate and the maximum rate of interest (as specified in
            the relevant Mortgage Conditions) (the "Capped Rate Mortgage
            Loans") will not exceed 3 per. cent of the aggregate Current
            Balance of all Mortgage Loans in the Mortgages Trust (including
            such Capped Rate Mortgage Loans) as of such Assignment Date,
            unless Moody's has confirmed in writing that the then current
            ratings of the Notes will not be adversely affected,

      PROVIDED THAT, if an Initial Purchase Price is payable to the Seller by
      the Mortgages Trustee on the relevant Assignment Date, only the
      conditions set out in paragraphs (e), (f), (i),

                                      10
<PAGE>

      (k), (l), (m), (o), (p), (q), (r) and (s) are required to be satisfied
      to effect an assignment of the New Mortgage Loans.

      Notwithstanding the foregoing, the Mortgages Trustee may waive or vary
      any of the conditions set forth in Clause 4.2 provided that each of the
      Rating Agencies has confirmed in writing (whether or not such
      confirmation is addressed to the Mortgages Trustee) that the relevant
      waiver or variation will not adversely affect the then current ratings
      of the existing Notes of any Issuer or that it approves the relevant
      waiver or variation.

4.3   No Further Assignment: The Seller and the Mortgages Trustee agree that
      the Seller may not sell and assign any New Mortgage Portfolio after the
      Step-up Date in respect of the Notes of any Issuer if the option to
      redeem any such Notes on the related Step-up Date pursuant to Condition
      5(D) of those Notes is not exercised.

4.4   Closing and Conditions Precedent: A meeting shall take place on the date
      of the sale and assignment of the relevant New Mortgage Portfolio at the
      offices of the Seller or at such other office as may be agreed by the
      parties at which the Seller shall deliver to the Security Trustee or its
      representative the following documents:

      (a)   a certificate of solvency in relation to the Seller dated the
            relevant Assignment Date (in the form of the agreed draft) duly
            executed by the Seller;

      (b)   an assignment of the Insurance Contracts to the extent that such
            Insurance Contracts relate to the New Mortgage Portfolio in the
            form set out in Schedule 3 (Assignment of Insurance Contracts)
            duly executed by the Seller;

      (c)   a certificate of a duly authorised officer of the Seller attaching
            a copy of the board minutes referred to in paragraph (e) of Clause
            3.1 (Initial Closing and Conditions Precedent) and confirming that
            the resolutions referred to therein are in full force and effect
            and have not been amended or rescinded as at the date of the
            certificate; and

      (d)   a Scottish Trust Deed in respect of the Scottish Mortgage Loans in
            the New Mortgage Portfolio (if any) and their Related Security, in
            the form set out in Schedule 11 and with the annexure thereto duly
            completed, duly executed by the Seller.

4.5   Purchase Price: Subject to fulfilment of the conditions referred to in
      Clauses 4.2 (Conditions to Effecting an Assignment of New Mortgage
      Loans), 4.3 (No Further Assignment) and 4.4 (Closing and Conditions
      Precedent), the Mortgages Trustee shall, if and to the extent that the
      same is payable, pay the Purchase Price for the New Mortgage Portfolio
      to the Seller, in the manner that the Seller directs, for value, as
      follows:

      (a)   (if any Initial Purchase Price is payable in respect of the New
            Mortgage Portfolio which shall only be the case if an Initial
            Contribution is paid by Funding to the Mortgages Trustee on such
            date pursuant to the terms of the Mortgages Trust Deed) the
            Initial Purchase Price for the New Mortgage Portfolio shall be
            paid by the Mortgages Trustee to the Seller on the relevant
            Assignment Date (which Initial Purchase Price shall be paid by the
            Mortgages Trustee from funds received by the Mortgages Trustee
            from Funding on such date in respect of Funding's Initial

                                      11
<PAGE>

            Contribution for the Funding Share of the New Trust Property
            pursuant to the Mortgages Trust Deed), PROVIDED THAT if on any
            date the Seller is obliged to repurchase any Mortgage Loan or
            Mortgage Loans pursuant to Clause 8.4 (Repurchase), 8.5 (Purchase
            of Product Switches, Further Advances and purchases relating to
            Personal Secured Loans) or 8.6 (Repurchase of Fixed Rate Mortgage
            Loans), and on such date the Seller sells and assigns New Mortgage
            Loans and their Related Security to the Mortgages Trustee, the
            Seller is entitled to set-off against the repurchase price payable
            by it on such repurchase as set forth under Clause 8.7 (Completion
            of Repurchase) the amount of any Initial Purchase Price payable
            for any such New Mortgage Loans and shall instead pay (or be paid)
            such net amount; and

      (b)   subject to and in accordance with the Mortgages Trustee Revenue
            Priority of Payments, an amount of Deferred Purchase Price in
            respect of the Mortgage Portfolio shall be paid by the Mortgages
            Trustee to the Seller on each Distribution Date but only from and
            to the extent (if any) of any Relevant Distribution (as defined
            under paragraph (b) of Clause 4.2 (Consideration provided by
            Funding) of the Mortgages Trust Deed) available for payment on
            such date and in an amount equal to the Deferred Contribution for
            the Funding Share of the Trust Property paid by Funding to the
            Mortgages Trustee on such date or in respect of which the payment
            of such Deferred Contribution is otherwise satisfied on such date
            in accordance with the Mortgages Trust Deed.

4.6   Effect of Payment of Initial Purchase Price or Fulfilment of Conditions:
      The parties hereto acknowledge that the effect of either the payment to
      the Seller by the Mortgages Trustee of the Initial Purchase Price on the
      relevant Assignment Date or, if no Initial Purchase Price is payable on
      such date, the confirmation from the Seller of the fulfilment of the
      conditions referred to in Clauses 4.2 (Conditions to Effecting an
      Assignment of New Mortgage Loans) and the delivery to the Security
      Trustee of the documents referred to in Clause 4.4 (Closing and
      Conditions Precedent) on such date, will be the assignment and transfer
      to the Mortgages Trustee of the beneficial ownership of, and all of the
      Seller's beneficial right, title, interest and benefit in and to, the
      New Mortgage Portfolio subject to the terms and provisions of the
      Mortgages Trust Deed. Upon payment to the Seller by the Mortgages
      Trustee of the Initial Purchase Price on the relevant Assignment Date
      or, if no Initial Purchase Price is payable on such date, upon receipt
      of confirmation from the Seller of the fulfilment of the conditions
      referred to in Clauses 4.2 (Conditions to Effecting an Assignment of New
      Mortgage Loans), the fact that any of the conditions referred to in
      Clause 4.2 may not have been satisfied or waived, or any of the
      conditions precedent set out in Clause 4.4 (Closing and Conditions
      Precedent) have not been delivered or waived, shall not prevent the sale
      and assignment of the New Mortgage Portfolio to the Mortgages Trustee on
      the relevant Assignment Date (or prevent any Scottish Trust Deed from
      taking effect) and any unsatisfied conditions precedent shall deemed to
      have been waived. The foregoing is without prejudice to all of the
      rights and remedies of the Mortgages Trustee against the Seller,
      including without limitation, all claims for breach of Representation
      and Warranty. Each such assignment and transfer will be perfected upon
      the occurrence of any of the events set forth in Clause 6 (Perfection of
      the Assignment) and the transfer and assignation to the Mortgages
      Trustee of legal title to such New Mortgage Portfolio in accordance with
      Clause 6 (Perfection of the Assignment).

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<PAGE>

4.7   Documents: The Seller undertakes that from the relevant Assignment Date
      until the perfection of the assignment in accordance with Clause 6.1
      (Perfection Events) and the delivery of the Title Deeds in accordance
      with Clause 6.2 (Perfection), the Seller shall hold the deeds and
      documents constituting the Title Deeds and Mortgage Loan Files and all
      other certificates, notices, policies, endorsements and other matters
      necessary to establish title thereto relating to the Mortgage Portfolio
      that are in its possession or under its control or held to its order to
      the order of the Mortgages Trustee or as the Mortgages Trustee shall
      direct.

4.8   Early Repayment Charges: The Mortgages Trustee hereby agrees to pay to
      the Seller as part of the Deferred Purchase Price any and all Early
      Repayment Charge Receipts received by the Mortgages Trustee in respect
      of the Mortgage Loans included in the New Mortgage Portfolio PROVIDED
      THAT, if any Mortgage Loans in respect of which Early Repayment Charges
      are payable are the subject of a trust pursuant to Clause 5.1 (Trust in
      favour of Mortgages Trustee), the Seller, the Mortgages Trustee, Funding
      and the Security Trustee agree that the benefit of any Early Repayment
      Charges payable under such Mortgage Loan shall, on the date of payment
      to the Seller of the related Early Repayment Charge Receipts, be
      released from such trust.

4.9   Insurance: The Seller shall as soon as reasonably practical after
      completion of the sale and assignment of each New Mortgage Portfolio
      procure that the respective interests of the Mortgages Trustee, Funding
      and the Security Trustee are noted by the relevant insurers in relation
      to each Insurance Contract.

4.10  Mortgage Portfolio: Prior to the earlier to occur of:

      (a)   a Trigger Event; and

            (i)   if Funding does not enter into a New Intercompany Loan
                  Agreement, the Payment Date in January 2008; or

            (ii)  if Funding does enter into New Intercompany Loan Agreements,
                  the latest Payment Date specified by Funding by notice in
                  writing to the Seller and the Mortgages Trustee as applying
                  in relation to this covenant,

      the Seller undertakes to use all reasonable efforts to offer to sell and
      assign, in accordance with the provisions of this Clause 4 (Sale and
      Purchase of New Mortgage Portfolios), to the Mortgages Trustee and the
      Mortgages Trustee undertakes to use all reasonable endeavours to acquire
      from the Seller and to hold pursuant to the terms of the Mortgages Trust
      Deed, sufficient New Mortgage Loans and their Related Security so that
      the Overcollateralisation Test is not breached on three consecutive
      Distribution Dates PROVIDED THAT the Seller shall not be obliged to sell
      and assign to the Mortgages Trustee, and the Mortgages Trustee shall not
      be obliged to acquire, New Mortgage Loans and their Related Security if
      in the opinion of the Seller the sale and assignment to the Mortgages
      Trustee of New Mortgage Loans and their Related Security would adversely
      affect the business of the Seller.

      For the purposes of this Clause 4.10, the "Overcollateralisation Test"
      shall be calculated on each Distribution Date and shall be breached on
      any Distribution Date where the aggregate

                                      13
<PAGE>

      Current Balance of Mortgage Loans in the Mortgage Portfolio on such
      Distribution Date is less than an amount equal to the product of 1.05
      and the Principal Amount Outstanding of all Notes of all Issuers at such
      Distribution Date, and for this purpose, where such Notes outstanding
      are Controlled Amortisation Notes, the Principal Amount Outstanding of
      such Notes will be calculated on a straight-line basis by applying the
      appropriate CPR to such Notes on a monthly, rather than a quarterly
      basis.

5.    Trust of Monies

5.1   Trust in favour of Mortgages Trustee: Notwithstanding the assignment and
      transfer effected by this Agreement (or by any Scottish Trust Deed made
      pursuant hereto) if at, or at any other time after, the Initial Closing
      Date or, as the case may be in respect of any New Mortgage Portfolio,
      the relevant Assignment Date (but prior to any repurchase in accordance
      with Clause 8.5 (Purchase of Product Switches, Further Advances and
      purchases relating to Personal Secured Loans)) the Seller holds, or
      there is held to its order, or it receives, or there is received to its
      order any property, interest, right or benefit and/or the proceeds
      thereof hereby agreed to be sold to the Mortgages Trustee, the Seller
      undertakes with the Mortgages Trustee, Funding and the Security Trustee
      that it will hold such property, interest, right or benefit and/or the
      proceeds thereof upon trust for the Mortgages Trustee (pursuant, in the
      case of any property, interest, right or benefit and/or the proceeds
      thereof relating to a Scottish Mortgage Loan or its Related Security, to
      the relevant Scottish Trust Deed) subject at all times to the Mortgages
      Trust. In addition, if for any reason the assignment and transfer of the
      Initial Mortgage Portfolio, or any New Mortgage Portfolio (or any part
      thereof), or any property, interest, right or benefit therein or any of
      the proceeds thereof (each a "relevant asset"), is held to be
      ineffective or unenforceable against any Borrower, the Seller undertakes
      with the Mortgages Trustee, Funding and the Security Trustee and hereby
      declares that it will hold such relevant asset upon trust for the
      Mortgages Trustee. The Mortgages Trustee agrees that it will hold its
      beneficial interest in such relevant asset subject at all times to the
      Mortgages Trust.

5.2   Trust in favour of Seller: If at, or any time after, the Initial Closing
      Date or, as the case may be in respect of any New Mortgage Portfolio,
      the relevant Assignment Date, the Mortgages Trustee holds, or there is
      held to its order, or it receives, or there is received to its order,
      any property, interest, right or benefit relating to:

      (a)   any Mortgage Loan or Mortgage Loans under a Mortgage Account and
            its Related Security repurchased by the Seller pursuant to Clause
            8 (Warranties and Repurchase by the Seller); or

      (b)   (without prejudice to Clause 10 (Consequences of Breach)) any
            Early Repayment Charges payable by a Borrower in respect of any
            Mortgage Loan in the Mortgages Trust;

      and/or the proceeds thereof, the Mortgages Trustee undertakes with the
      Seller that it will remit, assign or transfer the same to the Seller, as
      the case may require, and until it does so or to the extent that the
      Mortgages Trustee is unable to effect such remittance, assignment or
      transfer, the Mortgages Trustee undertakes to hold such property,
      interest, right or benefit

                                      14
<PAGE>

      and/or the proceeds thereof upon trust for the Seller as the sole
      beneficial owner thereof or as the Seller may direct provided that the
      Mortgages Trustee shall not be in breach of its obligations under this
      Clause 5 if, having received any such moneys and paid them to third
      parties in error, it pays (at the direction of the Beneficiaries) to the
      Seller an amount equal to the moneys so paid in error in accordance with
      the Administration Agreement. In addition, if the Seller is required or
      elects to repurchase any Mortgage Loan and its Related Security pursuant
      to Clauses 8.4 (Repurchase), 8.5 (Purchase of Product Switches, Further
      Advances and purchases relating to Personal Secured Loans) or 8.6
      (Repurchase of Fixed Rate Mortgage Loans) and such Mortgage Loan or its
      Related Security, or any part thereof, or any property, interest, right
      or benefit therein or any of the proceeds thereof (each, a "relevant
      asset"), is held by the Seller subject to a trust pursuant to Clause 5.1
      (Trust in favour of Mortgages Trustee), then the Seller, the Mortgages
      Trustee, Funding and the Security Trustee agree that such relevant asset
      shall be released from the trust constituted pursuant to Clause 5.1
      (Trust in favour of Mortgages Trustee) on the date that such relevant
      asset would otherwise have been repurchased or re-transferred pursuant
      to Clause 8.7 (Completion of Repurchase).

6.    Perfection of the Assignment

6.1   Perfection Events: The execution of transfers and assignations of the
      Mortgages to the Mortgages Trustee and the notifications to Borrowers
      notifying such Borrowers of the assignment or assignation of their
      Mortgage Loans and Related Security to the Mortgages Trustee shall be
      completed within 20 business days of receipt of a written request in
      accordance with Clause 6.2 (Perfection) upon the occurrence of any of
      the following events:

      (a)   the valid service of an Intercompany Loan Enforcement Notice or a
            Note Enforcement Notice, provided that the perfection of an
            assignment of the Mortgage Portfolio shall not be required if the
            sole reason for the service of any Note Enforcement Notice is a
            default by a Currency Swap Provider or Interest Rate Swap Provider
            of any Issuer; or

      (b)   unless otherwise agreed by the Rating Agencies, the termination of
            the Seller's role as Administrator under the Administration
            Agreement and failure of any substitute administrator to assume
            the duties of the Administrator; or

      (c)   the Seller being required by an order of a court of competent
            jurisdiction, or by a change in law occurring after the Initial
            Closing Date, or by a regulatory authority of which the Seller is
            a member or with whose instructions it is customary that the
            Seller comply, to perfect the transfer of legal title to the
            Mortgage Loans and the Related Security in favour of the Mortgages
            Trustee; or

      (d)   the security under the Funding Deed of Charge or any material part
            of such security being in jeopardy and it being necessary to
            perfect the transfer of legal title to the Mortgage Loans and
            their Related Security in favour of the Mortgages Trustee in order
            to reduce such jeopardy materially; or

      (e)   the occurrence of an Insolvency Event in relation to the Seller;
            or

                                      15
<PAGE>

      (f)   notice in writing from the Seller to the Mortgages Trustee and
            Funding (with a copy to the Security Trustee) requesting such
            transfer.

6.2   Perfection: If an event set forth in any of paragraphs (a) to (f) of
      Clause 6.1 (Perfection Events) occurs and either the Mortgages Trustee
      or Funding (with the consent of the Security Trustee) or the Security
      Trustee so requests in writing, the Seller shall perfect the assignments
      as contemplated by and in accordance with this Clause 6 (Perfection of
      the Assignment) in relation to all Mortgage Loans then in the Mortgage
      Portfolio and shall:

      (a)   deliver to the Mortgages Trustee all Title Deeds and (subject to
            receipt of up to date schedules) the transfers and assignations
            referred to in Clause 6.3 (Transfer Documents) duly executed by
            the Seller; and

      (b)   give formal notice of the transfers and assignations to the
            relevant Borrowers, insurers and other persons (all such notices
            being in such form or forms as may be required by the Mortgages
            Trustee or Funding (with the written consent of the Security
            Trustee) or the Security Trustee).

6.3   Transfer Documents: If an event set forth in any of paragraphs (a) to
      (f) of Clause 6.1 (Perfection Events) occurs, the transfers that the
      Seller is required to deliver are:

      (a)   transfers in the form set out in Part 1 of Schedule 2 (Form of
            Transfer (Registered Land - England and Wales)) of all the English
            Mortgages then in the Mortgage Portfolio secured (or intended to
            be secured) over English Properties which comprise registered land
            (including any English Property which is the subject of an
            application for first registration at the Land Registry);

      (b)   transfers in the form set out in Part 2 of Schedule 2 (Form of
            Transfer (Unregistered Land - England and Wales)) of all the
            English Mortgages then in the Mortgage Portfolio secured (or
            intended to be secured) over English Properties which comprise
            unregistered land (excluding any which is the subject of an
            application for first registration);

      (c)   assignations in the form set out in Part 3 of Schedule 2 (Form of
            Transfer (Land Register - Scotland)) of all the Scottish Mortgages
            then in the Mortgage Portfolio secured (or intended to be secured
            over Scottish Properties title to which is registered (or in the
            course of being registered) in the Land Register of Scotland;

      (d)   assignations in the form set out in Part 4 of Schedule 2 (Form of
            Transfer (Sasine Register - Scotland)) of all the Scottish
            Mortgages then in the Mortgage Portfolio secured (or intended to
            be secured) over Scottish Properties title to which is recorded
            (or in the course of being recorded) in the General Register of
            Sasines;

      (e)   transfers and assignations of the benefit of the Guarantees
            relating to any relevant Mortgage Loan in the form of the
            Assignment of Guarantees set out in Part 1 of Schedule 5
            (Assignment of Guarantees) in relation to Guarantees governed by
            English law and in the form of the Assignation of Guarantees set
            out in Part 2 of

                                      16
<PAGE>

            Schedule 5 (Assignation of Guarantees) in relation to Guarantees
            governed by Scots law; and

      (f)   transfers and assignations of the Related Security or any other
            property or security sold to the Mortgages Trustee under this
            Agreement in such form as the Mortgages Trustee or the Security
            Trustee may reasonably require.

      The Mortgages Trustee or Funding (with the consent of the Security
      Trustee) or the Security Trustee may require that the form of any
      transfer or assignation referred to in this Clause 6.3 be changed at any
      time to reflect changes in law or relevant registry practice or
      requirements.

6.4   Prior to Perfection: Prior to perfection pursuant to Clause 6.1
      (Perfection Events) and subject to Clause 7.3 (Seller Ratings) and
      Clauses 3.6 (Insurance) and 4.9 (Insurance) neither the Mortgages
      Trustee nor Funding nor the Security Trustee will:

      (a)   register or record itself at, or submit or require the submission
            of any notice, form, request or application to, or pay any fee for
            the registration or recording of, or the noting of any interest
            at, the Land Charges Department of H.M. Land Registry or in the
            Registers of Scotland or at H.M. Land Registry in relation to the
            Mortgages Trustee's and/or Funding's interests in the Mortgage
            Portfolio;

      (b)   give or require the giving of any notice to any Borrower, insurer
            or any other person of the assignment or assignation of that
            Borrower's Mortgage Loan and its Related Security or such other
            property as may be included in the Mortgage Portfolio to the
            Mortgages Trustee or the charge by Funding of Funding's beneficial
            interest in that Borrower's Mortgage Loan and its Related Security
            or such property to the Security Trustee pursuant to the Funding
            Deed of Charge; or

      (c)   send or require to be sent to any solicitor who has acted on
            behalf of the Seller in respect of any Mortgage with respect to
            which the Seller has not received a complete set of the Title
            Deeds a letter or other communication requiring such solicitor to
            hold such documents to the order of the Mortgages Trustee or the
            Security Trustee (as the case may be).

6.5   Further Assurance: The Seller shall, subject to the other provisions of
      this Clause 6 (Perfection of the Assignment), upon request do all such
      other deeds, assurances, agreements, instruments, acts and things as the
      Mortgages Trustee, Funding or the Security Trustee may require in order
      to give effect to the terms of this Agreement and the assignments and
      assignations contemplated herein.

7.    Undertakings

7.1   Administration: The Mortgages Trustee and Funding undertake that they
      will at all times (or will direct the Administrator at all times to)
      administer and enforce (and exercise their powers and rights and perform
      their obligations under) the Mortgage Loans comprised in the Mortgage
      Portfolio and their Related Security in accordance with the
      Administration Procedures (for so long as these exist and thereafter in
      accordance with such policies as would be applied by a reasonable,
      prudent mortgage lender in the conduct of its business).

                                      17
<PAGE>

7.2   Reimbursement of Borrower: The Seller hereby undertakes with the
      Mortgages Trustee and Funding that, in the event that any Borrower
      establishes that it has at any time prior to the Initial Closing Date
      or, as the case may be, the relevant Assignment Date, paid to the Seller
      any amounts in excess of sums due to the Seller as at the date of
      payment under the Mortgage Conditions applicable to that Mortgage Loan
      (other than any Overpayment made by a Borrower under Flexible Mortgage
      Loan) the Seller will reimburse the Borrower for such overpayment
      together with any interest, cost or other expense associated therewith.
      The Seller further agrees to hold the Mortgages Trustee and Funding
      harmless against any such claims and to indemnify the Mortgages Trustee
      and Funding on an after Tax basis in relation to any costs, expense,
      loss or other claim which may arise in connection therewith. Any payment
      made by the Seller to the Mortgages Trustee and Funding in discharge of
      the foregoing indemnity shall be regarded as a rebate of part of the
      Purchase Price of the relevant Mortgage Loan.

7.3   Seller Ratings: The Seller hereby undertakes with the Mortgages Trustee,
      Funding and the Security Trustee that if the long term unsecured,
      unsubordinated and unguaranteed debt obligations of the Seller cease to
      be assigned a long term credit rating:

      (a)   from Moody's of no lower than Baal or from Fitch of no lower than
            BBB+, the Seller (unless Moody's or Fitch, as applicable, confirms
            that the then current ratings of the Notes will not be adversely
            affected) will deliver to the Mortgages Trustee, Funding, the
            Security Trustee (upon request) and the Rating Agencies details of
            the names and addresses of the Borrowers with Mortgage Loans then
            in the Mortgage Portfolio on computer diskette and a draft letter
            of notice to such Borrowers of the sale and assignment of those
            Mortgage Loans and the Related Security to the Mortgages Trustee
            in the form set out in Schedule 8 (Form of Notification to
            Borrowers); and

      (b)   from S&P of no lower than BBB-, from Moody's of no lower than Baa3
            or from Fitch of no lower than BBB-, the Seller (unless S&P,
            Moody's and Fitch, as applicable, confirms that the then-current
            ratings of the Notes will not be adversely affected) shall within
            10 Business Days of such cessation give notice of the sale and
            assignment effected by this Agreement (and, in the case of any
            Scottish Mortgage Loan, the making of the relevant Scottish Trust
            Deed) to each Borrower with a Mortgage Loan then in the Mortgage
            Portfolio in the form set out in Schedule 8 (Form of Notification
            to Borrowers) (and if the Seller fails to give such notice, then
            the Mortgages Trustee shall give such notice as the Seller's
            attorney under the power of attorney set out in Schedule 10 (Power
            of Attorney in favour of the Mortgages Trustee, Funding and the
            Security Trustee)),

      (c)   provided that, in respect of Clause 7.3(a), should the Seller be
            required as described in such Clause to provide the details of the
            names and addresses of Borrowers to the Mortgages Trustee and
            Funding, each of the Mortgages Trustee and Funding (to the extent,
            in respect of Funding, that such information is to be delivered to
            Funding other than at its United Kingdom branch office) hereby
            agrees to appoint an agent that is located in the United Kingdom
            and which maintains all appropriate registrations, notifications,
            licences and authorities (if any) required under the Data

                                      18
<PAGE>

            Protection Act 1998 to receive and maintain such information on
            its behalf, and under no circumstances shall either the Mortgages
            Trustee or Funding accept such information at its Jersey
            registered office or otherwise in Jersey (unless Jersey is
            declared an "approved state" by the European Commission, in which
            case such data may be delivered to the Mortgages Trustee and/or
            Funding at their respective Jersey offices).

7.4   Pending Perfection: The Seller undertakes to the Mortgages Trustee,
      Funding and the Security Trustee that, pending perfection under Clause 6
      (Perfection of the Assignment), the Seller:

      (a)   shall promptly notify the Mortgages Trustee, Funding and (upon
            request) the Security Trustee if it receives written notice of any
            litigation or claim calling into question in any material way the
            Seller's or the Mortgages Trustee's title to any Mortgage Loan
            comprised in the Mortgage Portfolio or its Related Security or if
            it becomes aware of any material breach of any of the
            Representations and Warranties or other obligations under this
            Agreement; and

      (b)   shall, if reasonably required so to do by the Mortgages Trustee,
            participate or join in and lend its name to and take such other
            steps as may reasonably be required by the Mortgages Trustee in
            relation to, any legal proceedings in respect of the Mortgage
            Loans and the Related Security to the extent necessary to protect,
            preserve and enforce the Seller's or the Mortgages Trustee's or
            Funding's or the Security Trustee's title to or interest in any
            Mortgage Loan or its Related Security provided that the Seller is
            reimbursed, subject to and in accordance with the relevant
            priority of payments under and in accordance with the Transaction
            Documents, by the Mortgages Trustee or Funding for the reasonable
            legal expenses and costs of such proceedings.

7.5   Responsibility of Seller: The Seller hereby further undertakes with the
      Mortgages Trustee and Funding that it is and at all times shall remain
      solely responsible for any Product Switches (other than a Re-Fixed
      Mortgage Loan), for funding any Cash Re-Draws made by a Borrower under a
      Flexible Mortgage Loan, for funding any request for any Further Advance
      made by a Borrower, for funding any request for any Further Draw under a
      Personal Secured Loan and for paying to the Mortgages Trustee from time
      to time an amount equal to the Unpaid Interest associated with any
      Non-Cash Re-Draw made by a Borrower under a Flexible Mortgage Loan. For
      the avoidance of doubt, neither the Mortgages Trustee nor Funding will
      be required to advance moneys to the Seller or to a Borrower in order to
      fund such a Re-Draw or Further Advance or Further Draw in any
      circumstances whatsoever.

7.6   Product Switches and Further Advances:

      (a)   Neither the Mortgages Trustee nor Funding shall (and each shall
            procure that its agents do not):

            (i)   issue to any Borrower any offer of a Further Advance; or

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<PAGE>

            (ii)  issue to any Borrower any offer of a Product Switch (other
                  than a Re-Fixed Mortgage Loan),

            without first having given notice in writing to the Seller seeking
            confirmation from the Seller that the Seller will repurchase the
            Mortgage Loan to which such offer relates from the Mortgages
            Trustee in accordance with the terms of this Agreement.

      (b)   If the Seller gives such confirmation to the Mortgages Trustee,
            the Mortgages Trustee (or its agents, including the Administrator,
            on its behalf) shall then issue to that Borrower the relevant
            offer referred to in paragraph (a) above and shall (in the case of
            any offer referred to in paragraph (a) above) then notify the
            Seller in writing as soon as the Mortgages Trustee has accepted
            the mortgage documentation completed by the Borrower in relation
            to such offer.

      (c)   The Mortgages Trustee shall not itself make any Further Advance or
            Product Switch (other than in relation to a Re-Fixed Mortgage
            Loan).

7.7   Standard Variable Rate: Subject to the provisions of Clause 7.9, the
      Seller covenants with and undertakes to the Mortgages Trustee, Funding
      and the Security Trustee that, where the Administrator determines on any
      date that there will be a Shortfall during the next succeeding Interest
      Period and notifies the Seller to such effect, the Seller shall take all
      steps which are necessary, including publishing any notice which is
      required in accordance with the Mortgage Conditions, to set the Standard
      Variable Rate and such other discretionary rates and margins applicable
      to the Mortgage Loans at such levels as may be notified to the Seller by
      the Mortgages Trustee, Funding or the Security Trustee (which rates
      shall be the same rates as previously notified to the Mortgages Trustee,
      Funding and the Security Trustee in accordance with Clause 4.3(b) of the
      Administration Agreement) as being the rates required in order for no
      Shortfall to arise.

7.8   Security Powers of Attorney: The Seller shall grant security powers of
      attorney to the Mortgages Trustee, Funding and the Security Trustee in
      the form set out in Schedule 10 (Power of Attorney in favour of the
      Mortgages Trustee, Funding and the Security Trustee) allowing any of the
      Mortgages Trustee, Funding and the Security Trustee and their delegates
      from time to time (inter alia) to set the Standard Variable Rate, such
      other discretionary rates and margins applicable to the Mortgage Loans
      and (save for the Security Trustee) the rate of (and terms relating to)
      the Existing Borrowers' Re-Fix Rate should the Seller fail to do so in
      accordance with its obligations under this Agreement, but only to the
      extent that such rates have been previously notified to the Mortgages
      Trustee, Funding and the Security Trustee in accordance with Clause
      4.3(b) of the Administration Agreement. Nothing in this Clause 7.8 shall
      prevent the Seller (or any of its attorneys from time to time) from
      setting a higher Northern Rock Standard Variable Rate or higher rates
      for other discretionary rates and margins (or in the case of the
      Existing Borrowers' Re-Fix Rate setting a higher rate and imposing terms
      more advantageous to the Mortgages Trustee) than those to be set or
      required by the Mortgages Trustee, Funding and (other than in respect to
      an Existing Borrower's Re-Fix Rate) the Security Trustee.

7.9   Shortfall: Unless any of the Mortgages Trustee, Funding or the Security
      Trustee needs to do

                                      20
<PAGE>

      so to avoid a Shortfall, none of the Mortgages Trustee, Funding or the
      Security Trustee shall set the Standard Variable Rate and other
      discretionary rates and margins for Mortgage Loans which are in the
      Mortgages Trust (disregarding any discounts or additions to it) at rates
      higher than the then equivalent rates for mortgage loans which are not
      in the Mortgages Trust.

7.10  Forwarding of Notice: The Security Trustee undertakes, upon receipt of
      any notice as specified in Clause 8.5(c) of the Mortgages Trust Deed, to
      forward such notice to the Mortgages Trustee, Funding, the Seller and
      the Cash Manager in the manner set forth in Clause 20 within three (3)
      London Business Days of receipt thereof. The Security Trustee shall have
      no other obligation other than the foregoing following receipt of such
      notice.

8.    Warranties and Repurchase by the Seller

8.1   Representations and Warranties: The Seller makes the Representations and
      Warranties set out in Schedule 1 (Representations and Warranties) to
      each of the Mortgages Trustee, Funding and the Security Trustee:

      (a)   in respect of each Mortgage Loan and its Related Security in the
            Initial Mortgage Portfolio as at the date hereof and on the
            Initial Closing Date;

      (b)   in relation to each New Mortgage Loan (other than Personal Secured
            Loans if specifically excluded from a Representation and Warranty)
            and its Related Security in a New Mortgage Portfolio, on the date
            of the service of the relevant New Mortgage Portfolio Notice and
            on the relevant Assignment Date;

      (c)   in the form set out in Part 2 of Schedule 1 (Representations and
            Warranties) in relation to the matters and at the dates set out
            therein; and

      (d)   in the form set out in Part 3 of Schedule 1 (Representations and
            Warranties) in relation to the matters and at the dates set out
            therein.

8.2   Reliance: The Seller acknowledges that the Representations and
      Warranties are made with a view to inducing the Mortgages Trustee,
      Funding and the Security Trustee either to enter into this Agreement and
      the other Transaction Documents to which each is a party or to agree to
      purchase the New Mortgage Loans and their Related Security comprised in
      each New Mortgage Portfolio, and that each of the Mortgages Trustee,
      Funding and the Security Trustee has entered into this Agreement and the
      other Transaction Documents to which it is a party in reliance upon the
      Representations and Warranties notwithstanding any information possessed
      or discoverable by the Mortgages Trustee, Funding and/or the Security
      Trustee. The Mortgages Trustee, Funding and the Security Trustee
      acknowledge that they have not entered into this Agreement in reliance
      upon any representation, warranty or undertaking other than those set
      out in this Agreement or upon any other enquiry, investigation or search
      whatsoever.

8.3   Remedies: The Mortgages Trustee's, Funding's and the Security Trustee's
      sole remedy in respect of a breach of any of the Representations and
      Warranties shall be to take action under this Clause 8 (Warranties and
      Repurchase by the Seller) or under Clause 8.4 (Adjustments to Trust
      Property) of the Mortgages Trust Deed. Furthermore, in respect of any
      actual or

                                      21
<PAGE>

      alleged breach of Clause 8.1 (Representations and Warranties), the
      Mortgages Trustee, Funding or the Security Trustee shall, as applicable:

      (a)   notify the Seller as soon as reasonably practicable following any
            claim or intimation of claim by any person of or arising from such
            actual or alleged breach and thereafter keep the Seller informed
            in relation to such claim or intimation;

      (b)   not settle or compromise any such claim made or intimated or
            otherwise do anything which may be prejudicial to the position of
            the Seller in relation thereto having regard to this Agreement,
            except pursuant to the written directions of the Seller or with
            the Seller's prior written approval, such directions and approval
            not to be unreasonably withheld; and

      (c)   comply with the Seller's reasonable directions as to answering,
            disputing, defending, compromising, settling, or otherwise in
            relation to the claim made or initiated (including without
            limitation the instruction of particular legal advisers), and if
            and to the extent required by the Seller, do such things as the
            Seller may reasonably require to enable and authorise the Seller
            or persons nominated by the Seller to answer, dispute, defend,
            compromise, settle or otherwise deal with any such claim or
            intimated claim, or mitigate loss or potential loss on behalf of
            the Mortgages Trustee, subject in each case to the Seller
            indemnifying the Mortgages Trustee, Funding and the Security
            Trustee against the consequences of complying with the Seller's
            directions and requirements.

8.4   Repurchase: Subject to Clause 8.14 (Repurchase Not Possible), in the
      event of a material breach of any of the Representations or Warranties
      in respect of any Mortgage Loan and/or its Related Security as at the
      Initial Closing Date or, as the case may be, the relevant Assignment
      Date, which could have a material adverse effect on the Mortgage Loan
      and/or its Related Security (having regard to, among other things,
      whether a loss is likely to be incurred in respect of the Mortgage Loan
      to which the breach relates after taking account of the likelihood of
      recoverability or otherwise of any sums under any applicable insurance
      policies), and further provided that:

      (a)   the Mortgages Trustee, Funding or the Security Trustee has given
            the Seller not less than 28 days' notice in writing;

      (b)   the Mortgages Trustee has obtained the consent of the Security
            Trustee; and

      (c)   such breach, where capable of remedy, is not remedied to the
            satisfaction of Funding and the Security Trustee within the 28 day
            period referred to in (a) (or such longer period as Funding and
            the Security Trustee may direct the Mortgages Trustee),

      then at Funding's (with the consent of the Security Trustee) or the
      Security Trustee's direction, the Mortgages Trustee may serve upon the
      Seller a notice in the form of the Loan Repurchase Notice whereupon the
      Seller will be required to repurchase (i) the relevant Mortgage Loan and
      its Related Security, (ii) any other Mortgage Loan secured or intended
      to be secured by that Related Security or any part of it and (iii) any
      other Mortgage Loan secured on the same

                                      22
<PAGE>

      Mortgaged Property as the relevant Mortgage Loan to which the breach
      relates in accordance with Clause 8.7 (Completion of Repurchase),
      provided, however, that the Security Trustee shall have no duty to
      provide any such notice to the Seller or consider granting its consent
      pursuant to this Clause 8.4 unless the Security Trustee has been
      notified by a party to a Transaction Document of such material breach of
      such Representation or Warranty which, in the opinion of such party (as
      communicated to the Security Trustee), could have a material adverse
      effect on the related Mortgage Loan and/or its Related Security, taking
      into account the considerations provided in this Clause 8.4, and further
      provided that prior to receipt of such notice the Security Trustee shall
      be entitled to assume that no such material breach has occurred.

8.5   Purchase of Product Switches, Further Advances and purchases relating to
      Personal Secured Loans: In the event of there being at any date in
      respect of any Mortgage Loan assigned to the Mortgages Trustee hereunder
      a PS/FA/PSL Event (other than a Mortgage Loan becoming a Re-Fixed
      Mortgage Loan, such PS/FA/PSL Event being dealt with under Clause 8.6
      (Repurchase of Fixed Rate Mortgage Loans)), the Seller may at any time
      serve notice in the form of the Loan Repurchase Notice on the Mortgages
      Trustee whereupon the Mortgages Trustee will be required to sell and to
      transfer to the Seller in accordance with Clause 8.7 (Completion of
      Repurchase):

      (a)   any Mortgage Loan subject to a PS/FA/PSL Event, together with its
            Related Security;

      (b)   any other Mortgage Loan secured or intended to be secured by the
            Related Security referred to in (a) above or any part of it; and

      (c)   any other Mortgage Loan secured on the same Mortgaged Property
            that secures the Mortgage Loan subject to a PS/FA/PSL Event,
            together with its Related Security,

      each such Mortgage Loan to be identified in the Loan Repurchase Notice
      (any such Mortgage Loan or Mortgage Loans, a "PS/FA/PSL Mortgage Loan"),
      free from the Mortgages Trust and any right or interest that the
      Security Trustee may have in such PS/FA/PSL Mortgage Loan and its
      Related Security under the Funding Deed of Charge. Any PS/FA/PSL
      Mortgage Loan purchased by the Seller shall be released from the
      Mortgages Trust and shall no longer constitute Trust Property and shall
      be released from any right or interest that the Security Trustee may
      have had in such Mortgage Loan and its Related Security under the
      Funding Deed of Charge prior to such repurchase.

8.6   Repurchase of Fixed Rate Mortgage Loans

      (a)   Where a Mortgage Loan bears interest at a fixed rate for a certain
            period (the "initial fixed rate period"), after the expiry of
            which the Borrower is entitled to apply for a new fixed rate
            (whether or not subject to certain conditions), the Mortgages
            Trustee may by notice in writing to the Seller given at any time
            not more than 60 days before the expiry of that initial fixed rate
            period (which for the avoidance of doubt shall exclude any period
            of extension to which the relevant Borrower is entitled), offer to
            re-sell to the Seller that Mortgage Loan together with its Related
            Security if that Mortgage Loan becomes a Re-Fixed Mortgage Loan
            during the 3-month period immediately following the end of that
            initial fixed rate period. The offer will be in

                                      23
<PAGE>

            writing in the form set out in Schedule 9 (Offer under Clause 8.6
            ) and will be signed by or on behalf of the Mortgages Trustee.

      (b)   The Seller may accept the offer made in accordance with paragraph
            (a) above on the date on which that Mortgage Loan becomes a
            Re-Fixed Mortgage Loan during the 3-month period immediately
            following the end of the initial fixed rate period relating to it,
            only by payment to the Mortgages Trustee of the consideration
            payable for the repurchase of the relevant Mortgage Loan and its
            Related Security in accordance with Clause 8.7 (Completion of
            Repurchase).

      (c)   The parties hereto acknowledge that the effect of the payment to
            the Mortgages Trustee by the Seller of the consideration for the
            repurchase of the relevant Mortgage Loan and its Related Security
            in accordance with paragraph (b) above will be the assignment and
            transfer to the Seller of the beneficial ownership of, and all of
            the Mortgages Trustee's beneficial right, title, interest and
            benefit in and to, that Mortgage Loan, and completion of the
            repurchase shall be effected by the parties in accordance with
            Clause 8.7 (Completion of Repurchase).

      (d)   The Seller hereby covenants and undertakes that if it does not
            accept the offer made by the Mortgages Trustee in accordance with
            paragraph (b) above, then whether or not the Mortgage Loan becomes
            a Re-Fixed Mortgage Loan, it will set the Existing Borrowers'
            Re-Fix Rate applicable for the 3-month period immediately after
            expiry of the initial fixed rate period relating to that Mortgage
            Loan at a rate not less than that (and on terms not less
            advantageous to the Mortgages Trustee or Funding than those)
            notified from time to time to the Seller by the Mortgages Trustee,
            Funding or the Administrator as being required by the Mortgages
            Trustee or Funding.

8.7   Completion of Repurchase: Completion of any repurchase or re-transfer or
      purchase or transfer, as applicable, shall take place:

      (a)   in the case of any repurchase or re-transfer pursuant to Clause
            8.4 (Repurchase) or any purchase or transfer pursuant to Clause
            8.5 (Purchase of Product Switches, Further Advances and purchases
            relating to Personal Secured Loans) on the first London Business
            Day immediately following expiry of a period of 10 days following
            the date of the service upon the Seller of the relevant Loan
            Repurchase Notice or at the Seller's earlier election; or

      (b)   in the case of any repurchase or re-transfer pursuant to Clause
            8.6 (Repurchase of Fixed Rate Mortgage Loans), immediately upon
            the Mortgage Loan becoming a Re-Fixed Mortgage Loan,

      whereupon, the Seller shall pay to the Mortgages Trustee an amount equal
      to the Current Balance of such Mortgage Loan or Mortgage Loans and any
      Related Security and all Arrears of Interest and Accrued Interest
      relating thereto as at the date of completion of such repurchase. The
      provisions of Clause 8.8 (Transfers), Clause 8.9 (Documentation) and
      Clause 8.16 (Scottish Trust) shall apply to any such repurchase or
      re-transfer.

                                      24
<PAGE>

8.8   Transfers: On the date of completion of any repurchase of a Mortgage
      Loan and its Related Security in accordance with this Clause 8
      (Warranties and Repurchase by the Seller), the Mortgages Trustee and
      Funding shall at the cost of the Seller execute and deliver or cause
      their respective duly authorised attorneys to execute and deliver to the
      Seller:

      (a)   if perfection of the assignment and assignation to the Mortgages
            Trustee has occurred in accordance with Clause 6 (Perfection of
            the Assignment):

            (i)   if the relevant Mortgage is over Registered Land, a transfer
                  of such Mortgage to the Seller in the form of the Registered
                  Transfer; or

            (ii)  if the relevant Mortgage is over Unregistered Land, a
                  transfer to the Seller in the form of the Unregistered
                  Transfer; or

            (iii) if the relevant Mortgage is a Scottish Mortgage, an
                  assignation to the Seller in the applicable form of Scottish
                  Transfer;

      (b)   a re-assignment or retrocession of the rights of the Mortgages
            Trustee in respect of the relevant Related Security each in a form
            reasonably acceptable to the Seller (which shall, in the case of
            the re-assignment of the Insurance Contracts, be substantially in
            the form of the Assignment of Insurance Contracts set out in
            Schedule 3 (Assignment of Insurance Contracts); and

      (c)   a notification to the Administrator that all further sums due in
            respect of such repurchased Mortgage Loan are for the Seller's
            account.

8.9   Documentation: Upon any completion of the repurchase of any Mortgage
      Loan and its Related Security in accordance with this Clause 8
      (Warranties and Repurchase by the Seller) the Seller shall cease to be
      under any further obligation to hold any Title Deeds or other documents
      relating to such Mortgage Loan or Mortgage Loans and its Related
      Security to the order of the Mortgages Trustee and the Security Trustee
      and if the Mortgages Trustee or the Security Trustee then holds the
      Title Deeds, the Mortgages Trustee or, as the case may be, the Security
      Trustee shall forthwith return them to the Seller. Any such repurchase
      by the Seller of a Mortgage Loan or Mortgage Loans and its or their
      Related Security shall constitute a discharge and release of the Seller
      from any claims which the Mortgages Trustee and/or Funding or the
      Security Trustee may have against the Seller arising from the relevant
      Representation or Warranty in relation to that Mortgage Loan or Mortgage
      Loans and its or their Related Security only, but shall not affect any
      rights arising from a breach of any other express provision of this
      Agreement or any Representation or Warranty in relation to any other
      Mortgage Loan and other Related Security.

8.10  Notification: Forthwith after the Seller becomes aware of any event
      which may reasonably give rise to an obligation under Clause 8
      (Warranties and Repurchase by the Seller) to repurchase any Mortgage
      Loan it shall notify the Mortgages Trustee, Funding and the Security
      Trustee in writing thereof as soon as reasonably practicable.

8.11  No Prejudice:  The terms of this Clause 8 (Warranties  and  Repurchase
      by the  Seller)  shall  not  prejudice  the  rights  of the  Mortgages
      Trustee or the Beneficiaries under the Mortgages

                                      25
<PAGE>

      Trust Deed.

8.12  Claims against Seller: If a breach of a Representation or Warranty
      arises in respect of any Mortgage Loan and (in either case) no
      repurchase requirement arises in respect of the Seller pursuant to this
      Clause 8 (Warranties and Repurchase by the Seller), neither the
      Mortgages Trustee, Funding nor the Security Trustee shall have any claim
      against the Seller in respect of, or in relation to, such breach of
      Representation or Warranty in relation to that Mortgage. For the
      avoidance of doubt, save as provided for in this Clause 8 (Warranties
      and Repurchase by the Seller), the Seller is not obliged to repurchase
      any other Mortgage Loan or its Related Security.

8.13  Assignment: If the Seller makes any payment to the Mortgages Trustee GIC
      Account (or as the Mortgages Trustee shall direct) in full satisfaction
      of any claim made by the Mortgages Trustee, Funding or the Security
      Trustee in relation to any Representation or Warranty set out in
      Schedule 1 (Representations and Warranties), the Mortgages Trustee,
      Funding or the Security Trustee, as the case may be, shall assign to the
      Seller such rights as they have against any third party which relate to
      such claim.

8.14  Repurchase Not Possible: If a Mortgage Loan has never existed, or has
      ceased to exist, such that it is not outstanding on the date on which it
      is due to be repurchased pursuant to this Clause 8 (Warranties and
      Repurchase by the Seller), the Seller shall not be obliged to repurchase
      the Mortgage Loan and the Related Security but shall instead indemnify
      the Mortgages Trustee, Funding and the Security Trustee against any loss
      suffered by reason of any Representation or Warranty relating to or
      otherwise affecting that Mortgage Loan being untrue or incorrect by
      reference to the facts subsisting at the date on which the relevant
      Representation or Warranty was given, provided that the amount of such
      indemnity shall not exceed the sum of (i) the Current Balance of the
      Mortgage Loan that would have been payable by the Borrower in respect of
      such Mortgage Loan on and after the relevant completion date for the
      repurchase in relation to such Mortgage Loan had the Mortgage Loan
      existed and complied with each of the Representations and Warranties set
      out Schedule 1 (Representations and Warranties) as at such date in
      relation to such Mortgage Loan and (ii) interest thereon from such
      relevant completion date at the weighted average yield of the Mortgage
      Loans.

8.15  Indemnity: The Seller shall indemnify the Mortgages Trustee against any
      loss suffered as a result of any Borrower exercising a Right of Set Off
      against the Mortgages Trustee provided that the amount of such indemnity
      in relation to any Mortgage Loan shall not exceed the sum of the Current
      Balance of that Mortgage Loan and interest payable by the Borrower under
      that Mortgage Loan as at the date that the Borrower exercises the Right
      of Set Off. In this clause "Right of Set Off" means any right of set off
      arising from a deposit of money made by the Borrower with the Seller or
      from any transaction between the Borrower and the Seller other than one
      relating to the Mortgage Loan.

8.16  Scottish Trust: Upon any completion of the repurchase or purchase by the
      Seller of any Scottish Mortgage Loan and its Related Security in
      accordance with this Clause 8 (Warranties and Repurchase by the Seller)
      such Scottish Mortgage Loan and its Related Security shall thereupon be
      released from the Scottish Trust and shall cease to form part of the
      Scottish

                                      26
<PAGE>

      Trust Property.

9.    Further Assurance

      The parties hereto agree that they will co-operate fully to do all such
      further acts and things and execute any further documents that may be
      necessary or desirable to give full effect to the transactions
      contemplated by this Agreement (but subject always to Clause 6
      (Perfection of the Assignment)).

10.   Consequences of Breach

      Without prejudice to Clause 8 (Warranties and Repurchase by the Seller),
      the Mortgages Trustee, Funding and the Security Trustee severally
      acknowledge to and agree with the Seller, and the Security Trustee
      acknowledges to and agrees with Funding and the Mortgages Trustee, that
      the Seller shall have no liability or responsibility (whether, in either
      case, contractual, tortious or delictual, express or implied) for any
      loss or damage for or in respect of any breach of, or any act or
      omission in respect of, any of its obligations hereunder other than loss
      or damage directly (and not indirectly or consequentially) suffered by
      the Mortgages Trustee and/or Funding or the assets comprised in the
      Funding Security constituted by the Funding Deed of Charge by reason of
      such breach, act or omission. For this purpose (and without limiting the
      scope of the above exclusion in respect of indirect or consequential
      loss or damage) any loss or damage suffered by the Mortgages Trustee
      and/or Funding or such assets which would not have been suffered by it
      or such assets had the breach, act or omission in question not also been
      or given rise to an Event of Default or enforcement of the security
      constituted by the Funding Deed of Charge shall be treated as indirect
      or consequential loss or damage.

11.   Subordination

      The Seller agrees with the Mortgages Trustee, Funding and the Security
      Trustee that on the enforcement of any Mortgage any sums owed to the
      Seller by a Borrower secured under such Mortgage and the rights and
      remedies of the Seller in respect of the sums owed to the Seller shall
      at all times be subject and subordinated to any sums owed to the
      Mortgages Trustee by the Borrower and to the rights and remedies of the
      Mortgages Trustee in respect of such sums owed to the Mortgages Trustee
      by the Borrower.

12.   Non-Merger

      Any term of this Agreement to which effect is not given on the Initial
      Closing Date or on any Assignment Date (including in particular, but
      without limitation, the liability of the Seller under the
      Representations and Warranties and the provisions of Clause 4 (Sale and
      Purchase of New Mortgage Portfolios)) shall not merge and shall remain
      in full force and effect notwithstanding the sale and purchase
      contemplated by this Agreement.

13.   No Agency or Partnership

      It is hereby acknowledged and agreed by the parties that nothing in this
      Agreement shall be construed as giving rise to any relationship of
      agency, save as expressly provided herein, or

                                      27
<PAGE>

      partnership between the parties and that in fulfilling its obligations
      hereunder, each party shall be acting entirely for its own account.

14.   Payments

      All payments to be made pursuant to this Agreement shall be made in
      sterling in immediately available funds without exercising or seeking to
      exercise any right of set-off as may otherwise exist and shall be deemed
      to be made when they are received by the payee and shall be accounted
      for accordingly unless failure to receive any payment is due to an error
      by the payee's bank.

15.   Assignment

15.1  Assignment: Subject always to the provisions of Clause 16 (Security
      Trustee), no party hereto shall be entitled to assign all or any part of
      its rights or obligations hereunder to any other party without the prior
      written consent of each of the other parties hereto (which shall not, if
      requested, be unreasonably withheld) save that Funding shall be entitled
      to assign by way of security all or any of its rights under this
      Agreement without such consent to the Security Trustee pursuant to the
      Funding Deed of Charge and the Security Trustee may at its sole
      discretion assign all or any of its rights under or in respect of this
      Agreement without such consent to any successor Security Trustee under
      the Funding Deed of Charge and may assign all of any part of the Funding
      Security upon an enforcement of the Funding Security in accordance with
      the Funding Deed of Charge.

15.2  Acknowledgement of Security Assignment: The Seller acknowledges that on
      the assignment pursuant to the Funding Deed of Charge by Funding to the
      Security Trustee of Funding's rights under this Agreement the Security
      Trustee may enforce such rights in the Security Trustee's own name
      without joining Funding in any such action (which right the Seller
      hereby waives) and the Seller hereby waives as against the Security
      Trustee any rights or equities in its favour arising from any course of
      dealing between the Seller and Funding.

16.   Security Trustee

16.1  Vesting of Rights: If there is any change in the identity of the
      security trustee in accordance with the Funding Deed of Charge, the
      Seller, the Mortgages Trustee and Funding 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 hereunder and releasing the outgoing security trustee from its
      future obligations under this Agreement and the Seller shall give notice
      thereof to the Rating Agencies.

16.2  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 Seller or Funding or
      the Mortgages Trustee hereunder. 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

                                      28
<PAGE>

      accordance with the provisions of the Funding Deed of Charge. Without
      prejudice to the generality of the foregoing, all references to the
      Security Trustee taking action in connection with any duty of the Seller
      shall also be read subject to Clause 25 and Schedule 4 of the
      Administration Agreement.

17.   New Intercompany Loans

      If Funding enters into a New Intercompany Loan Agreement, then the
      Seller, the Mortgages Trustee, Funding and the Security Trustee shall
      execute such documents and take such action as may be required by the
      Rating Agencies for the purpose of including the New Issuer in the
      Transaction including, without limitation:

      (a)   effecting any necessary changes to Clause 4 (Sale and Purchase of
            New Mortgage Portfolios);

      (b)   ensuring that any Transaction Document relevant to a New Issuer
            has been executed and delivered prior to the relevant Closing
            Date;

      (c)   executing and delivering all documents required by Clause 4.4
            (Closing and Conditions Precedent) in relation to any New Mortgage
            Portfolio.

18.   Non Petition Covenant; Limited Recourse

18.1  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.

18.2  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

                                      29
<PAGE>

                  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.

18.3  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 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.

19.   Amendments and Waiver

19.1  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.

19.2  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.

19.3  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.

                                      30
<PAGE>

20.   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 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 01534-609-333) 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; and

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

      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 to the others by fifteen days prior written notice in accordance
      with the provisions of this Clause 20.

21.   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.

22.   Execution in Counterparts; Severability

22.1  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.

22.2  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.

                                      31
<PAGE>

23.   Governing Law and Submission to Jurisdiction

23.1  Governing Law: This Agreement is governed by, and shall be construed in
      accordance with, English law (PROVIDED THAT any terms of this Agreement
      which are particular to the law of Scotland shall be construed in
      accordance with Scots law).

23.2  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.

24.   Process Agent

      The Mortgages Trustee irrevocably and unconditionally appoints Mourant &
      Co. Capital (SPV) Limited at 69 Park Lane, Croydon CR9 1TQ 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.   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.

                                      32
<PAGE>

26.   Transaction Documents

      To the extent necessary to comply with the requirements of Section 2 Law
      of Property (Miscellaneous Provisions) Act 1989, this Agreement
      incorporates by reference to them the Transaction Documents.

AS WITNESS whereof the parties hereto have executed this Agreement for
delivery on the day and year first before written.

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

------------------------------
Authorised Signatory

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:

                                      33
<PAGE>

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

------------------------------
Authorised Signatory

Name:

Title:

                                      34
<PAGE>

                                  SCHEDULE 1
                        REPRESENTATIONS AND WARRANTIES

                                    Part 1

1.    The particulars of each Mortgage Loan and its related Mortgage in the
      Initial Mortgage Portfolio set out in Appendix A to this Agreement are
      complete, true and accurate in all material respects.

2.    Immediately prior to a Closing Date or an Assignment Date, as the case
      may be, subject to completion of any registration or recording which may
      be pending at H.M. Land Registry or the Registers of Scotland, the
      Seller was the absolute beneficial and legal owner of the Mortgages, the
      Related Security and the other property to be assigned and transferred
      by the Seller to the Mortgages Trustee under this Agreement at such
      Closing Date or such Assignment Date, as the case may be, and the Seller
      has not assigned (whether by way of absolute assignment or by way of
      security only), transferred, charged, disposed of or dealt with the
      benefit of any of the Mortgage Loans or their related Mortgages, any of
      the other rights relating thereto or any of the property, rights,
      titles, interests or benefits to be sold or assigned pursuant to this
      Agreement other than pursuant to this Agreement.

3.    With the exception of Personal Secured Loans, each Mortgage Loan and its
      related Mortgage and the Related Security constitutes a valid and
      binding obligation of the Borrower enforceable in accordance with its
      terms (save any terms which are not binding by virtue of the Unfair
      Terms in Consumer Contracts Regulations 1994 or the Unfair Terms in
      Consumer Contracts Regulations 1999) and each such related Mortgage and
      the Related Security secures the repayment of all advances, interest,
      costs and expenses payable by the relevant Borrower to the Seller in
      priority to any other charges registered against the relevant Mortgaged
      Property.

4.    At the time that it was made, each Mortgage Loan (other than Personal
      Secured Loans) complied in all respects with applicable laws and
      regulations including, without limitation, consumer protection, data
      protection and contract law.

5.    Subject to completion of any registration which may be pending at H.M.
      Land Registry or the Registers of Scotland, each Mortgage (other than a
      Mortgage in respect of a Personal Secured Loan) either constitutes, or
      will constitute, following registration at H.M. Land Registry (in
      England and Wales), a first ranking charge by way of legal mortgage or
      following registration or recording at the Registers in Scotland, a
      first ranking standard security over the relevant Mortgaged Property.

6.    Each relevant Mortgaged Property is located in England, Wales or
      Scotland.

7.    All steps necessary to perfect the Seller's title to each Mortgage Loan
      and its related Mortgage were duly taken at the appropriate time or are
      in the process of being taken with all due diligence.

8.    No lien or right of set-off or counterclaim (other than a Right of
      Set-off referred to in Clause 8.15 (Indemnity)) has been created or
      arisen between the Seller and any Borrower which

                                      35
<PAGE>

      would entitle such Borrower to reduce the amount of any payment
      otherwise due under the relevant Mortgage Loan save in relation to the
      Unfair Terms in Consumer Contracts Regulations 1994 or the Unfair Terms
      in Consumer Contracts Regulations 1999 and save in relation to section
      75 of the Consumer Credit Act 1974.

9.    Prior to making a Mortgage Loan to a Borrower, the Seller instructed or
      required to be instructed on its behalf solicitors to carry out in
      relation to the relevant Mortgaged Property all investigations, searches
      and other actions that would have been undertaken by the Seller acting
      in accordance with standards consistent with those of a reasonable and
      prudent mortgage lender, lending to Borrowers in England and Wales (in
      respect of English Mortgage Loans) and Scotland (in respect of Scottish
      Mortgage Loans), when advancing money in an amount equal to such advance
      to an individual to be secured on a mortgaged property of the kind
      permitted under the Lending Criteria and a report on title was received
      by or on behalf of the Seller from such solicitors which, either
      initially or after further investigation revealed no material matter
      which would cause the Seller, acting reasonably, to decline the Mortgage
      Loan having regard to the Lending Criteria.

10.   In relation to each Mortgage the Borrower has a good and marketable
      title to the relevant Mortgaged Property.

11.   Prior to making a Mortgage Loan the relevant Mortgaged Property was
      valued by an independent valuer from the panel of valuers from time to
      time appointed by the Seller or by an employee valuer of the Seller, and
      the results of such valuation would be acceptable to a reasonable and
      prudent mortgage lender.

12.   Prior to making a Mortgage Loan, the nature and amount of such Mortgage
      Loan, the circumstances of the relevant Borrower and nature of the
      relevant Mortgaged Property satisfied the Lending Criteria in force at
      that time in all material respects.

13.   The exercise of any discretion by the Seller in the making of any
      Mortgage Loan has been consistent with the practice of a reasonable and
      prudent mortgage lender.

14.   Each Mortgage Loan and its related Mortgage has been made on the terms
      of the Standard Mortgage Documentation (so far as applicable) which has
      not been varied in any material respect, save for the making of the Base
      Rate Pledge.

15.   With the exception of agreements for Personal Secured Loans, no
      agreement for any Mortgage Loan (other than to the extent it relates to
      the funding of buildings insurance premiums) is or has ever been, wholly
      or partly regulated by the Consumer Credit Act 1974 (other than by
      Sections 137 to 140 of such Act) or constitutes an extortionate credit
      bargain under Sections 137 to 140 of such Act or, to the extent it is so
      regulated or partly regulated, all the requirements of the Consumer
      Credit Act have been met in full. No Mortgage Loan is, or has ever been,
      a linked transaction within Section 19 of the Consumer Credit Act.

16.   Interest on each Mortgage Loan: (a) is charged on the capital balance of
      each Mortgage Loan in accordance with the provisions of that Mortgage
      Loan and its related Mortgage; (b) is not in any event adjusted by
      reference to the principal amount due thereunder; (c) is payable

                                      36
<PAGE>

      monthly in advance; and (d) is calculated by reference to the Standard
      Variable Rate or the Bank of England Base Rate, subject to any
      applicable caps, discounts and fixed rates and the Base Rate Pledge; and
      (e) subject to (d) above, may be set by the Seller and its successors
      and assigns to that Mortgage Loan.

17.   No payment of interest (or in the case of Repayment Mortgage Loans,
      principal and interest) equivalent to an amount in excess of one month's
      instalment at the applicable rate in respect of a Mortgage Loan in the
      Initial Mortgage Portfolio was at any time during the 12 months before
      the relevant Closing Date or Assignment Date, as the case may be, in
      arrears.

18.   So far as the Seller is aware, no Borrower is in material breach of its
      Mortgage.

19.   So far as the Seller is aware, the underwriting, origination and
      completion of each Mortgage Loan is not the subject of fraud by any
      person (including, without limitation, the Borrower or any professional
      or third party employed or engaged on behalf of the Seller).

20.   As at the date of this Agreement, the first payment due has been paid by
      the relevant Borrower in respect of each Mortgage Loan and each Mortgage
      Loan was fully performing.

21.   Where any Borrower is or was entitled to repayment of any early
      repayment charge in respect of any mortgage previously held by the
      Borrower with the Seller, that repayment has been or will be made by the
      Seller.

22.   Except where a Mortgaged Property was at completion of the relevant
      Mortgage (or, where appropriate, in the case of self-build properties,
      at the date of completion of the relevant mortgaged property) covered by
      the Block Buildings Policy or a block buildings policy providing
      equivalent cover, the Seller took all reasonable steps to ensure that at
      the date of completion of the relevant Mortgage Loan each Mortgaged
      Property was:

      (a)   insured under a buildings policy either (i) in the joint names of
            the Borrower and the Seller or (ii) with the interest of the
            Seller noted thereon;

      (b)   insured under a Block Buildings Policy; or

      (c)   with respect to leasehold properties, insured by the relevant
            landlord with the Seller's approval,

      and in all cases against risks usually covered by a comprehensive
      buildings policy and to an amount not less than the full reinstatement
      cost of such Mortgaged Property as determined by an independent valuer
      or a valuer employed by the Seller.

23.   The Block Buildings Policy referred to above covers such fire and other
      commercial risks as would be required by the Seller acting in accordance
      with its normal standard for an amount not less than the full
      reinstatement value of the Properties covered by the Block Buildings
      Policy.

24.   The Insurance Contracts are in full force and effect and all premiums
      thereon due on or before the date of this Agreement have been paid in
      full and the Seller is not aware of any

                                      37
<PAGE>

      circumstances giving the insurer under the Insurance Contracts the right
      to avoid or terminate such policy in so far as it relates to the
      Mortgaged Properties or the Mortgage Loans. Where the Lending Criteria
      then in force required that a Mortgage Loan was covered by the Insurance
      Contract referred to in paragraph 1 of Schedule 4 (Insurance Contracts),
      that Mortgage Loan is covered by such Insurance Contract.

25.   To the extent that a Guarantee was required under the Lending Criteria
      in relation to a particular Mortgage Loan, that Guarantee constitutes
      the valid, binding and enforceable obligations of the guarantor
      thereunder (save to the extent that the Guarantee is not valid, binding
      or enforceable by virtue of the Unfair Terms in Consumer Contracts
      Regulations 1994 or the Unfair Terms in Consumer Contracts Regulations
      1999).

26.   If a Mortgaged Property is leasehold or long leasehold, written notice
      has been given to the landlord of the creation of the Mortgage.

27.   In relation to each English Mortgage, any person who at the date when
      the Mortgage Loan was made has been identified by the Borrower to the
      Seller as residing or about to reside in the relevant Mortgaged Property
      is either named as a joint Borrower or has signed a form of consent
      declaring that he or she agrees that any present or future rights or
      interests as he or she may have or acquire over or in respect of the
      relevant Mortgaged Property shall be postponed and made subject to the
      rights, interests and remedies of the Seller under the relevant Mortgage
      and that he or she shall not claim any such rights or interests against
      the Seller. In relation to each Scottish Mortgage, all necessary MHA
      Documentation has been obtained to as to ensure that neither the
      relevant Mortgage nor the relevant Mortgaged Property is subject to or
      affected by any statutory right of occupancy.

28.   No Borrower was under 18 years of age at the time of completion of the
      relevant Mortgage Loan.

29.   No Mortgage Loan has a final maturity beyond January 2039.

30.   The Seller has procured that full and proper accounts, books and records
      have been kept showing clearly all material transactions, payments,
      receipts and proceedings relating to that Mortgage Loan and its Mortgage
      and all such accounts, books and records are up to date and in the
      possession of the Seller or held to its order (subject to the provisions
      of the Mortgages Trust Deed).

31.   The origination and collection practices employed by the Seller with
      respect to the Mortgage Loans have been, in all respects, legal and
      consistent with the practice of a reasonable and prudent mortgage
      lender.

32.   The Seller has not received written notice of any litigation or claim
      calling into question in any material way its title to any Mortgage Loan
      and its Mortgage or the value of any security. The Seller is not engaged
      in any litigation, and no litigation is pending or threatened by the
      Seller, against any person in connection with any report, valuation,
      opinion, certificate, consent or other statement of fact or opinion
      given in connection with any Mortgage Loan received by the Seller in
      connection with the origination of any Mortgage Loan.

                                      38
<PAGE>

33.   In respect of any Mortgaged Property which is subject to a second or
      subsequent mortgage or standard security, the Seller has first priority
      for the full amount of the Mortgage Loan (other than in respect of a
      Personal Secured Loan) and all costs, fees and expenses relative
      thereto.

34.   Subject to completion of any registration or recording which may be
      pending at the H.M. Land Registry or the Registers of Scotland, all
      Property Deeds and Mortgage Loan Files are held by, or to the order of,
      the Seller.

35.   Each Borrower is a natural person, and no Borrower is at present an
      employee or an officer of the Seller.

36.   All Mortgage Loans were originated by or on behalf of the Seller in the
      ordinary course of the Seller's residential secured lending activities.
      No Mortgage Loan was acquired by the Seller subject to any discount and
      no Mortgage Loan has been written down by the Seller in its accounts.

37.   The Mortgage Loans and their related Mortgages contain no obligations on
      the part of the Seller to make any further advances, and all costs, fees
      and expenses incurred in making, closing or registering the Mortgage
      Loans and the Related Security have been paid in full.

38.   All formal approvals, consents and other steps necessary to permit a
      legal or equitable or beneficial transfer or a transfer of servicing
      away from the Seller of the Mortgage Loans and their related Mortgages
      to be sold under this Agreement whenever required under the Transaction
      Documents have been obtained or taken and there is no requirement in
      order for the transfer to be effective to notify the Borrower before, on
      or after any equitable or beneficial transfer or before any legal
      transfer of the Mortgage Loans and their related Mortgages.

39.   So far as the Seller is aware, none of the terms in any Mortgage Loan
      and its related Mortgage are unfair terms within the meaning of the
      Unfair Terms in Consumer Contracts Regulations 1994 or the Unfair Terms
      in Consumer Contracts Regulations 1999 in any material respect save
      those which impose Early Repayment Charges.

40.   The Seller has confirmed to all relevant Borrowers that where any
      Mortgage Loan provides that where any Early Repayment Charge is payable
      at any time when the interest rate payable under that Mortgage Loan is
      equal to or set by reference to the Standard Variable Rate (including
      without limitation where the Mortgage Loan provides for a capped or
      discounted rate), the interest rate payable under that Mortgage Loan
      will be no more than 1.99 per cent. above the Bank of England's base
      rate.

41.   In relation to a Right to Buy Mortgage Loan:

(a)   in the case of each English Mortgage Loan the Seller was at the time of
      origination of that Mortgage Loan an approved lending institution within
      the meaning given to that expression in the Housing Act 1985;

      (b)   the original advance was made to the person exercising the right
            to buy; and

                                      39
<PAGE>

      (c)   the original advance was made for the purposes of enabling the
            recipient thereof to purchase the relevant Mortgaged Property.

      For the purpose of this paragraph 41, "Right to Buy Mortgage Loan" means
      (i) in relation to an English Mortgage Loan, a Mortgage Loan in respect
      of which the "right to buy" provisions of the Housing Act 1985 apply
      (other than any Mortgage Loan in respect of which the period during
      which the statutory charge referred to in section 156 of that Act would
      have existed, had the relevant circumstances applied, has expired) and
      (ii) in relation to a Scottish Mortgage Loan, a Mortgage Loan in respect
      of which the "right to buy" provisions of the Housing (Scotland) Act
      1987 apply (other than any Mortgage Loan in respect of which the period
      during which the seller's standard security referred to in section 72 of
      that Act remains in effect has expired).

42.   The loyalty discount applicable to certain Mortgage Loans after seven
      years will not apply to any such Mortgage Loans during any period when
      the interest rate is fixed.

43.   The Seller has paid to the relevant Borrower the full amount of the
      cashback payment in relation to any Cashback Mortgage Loan, either upon
      completion of the relevant Mortgage Loan or, if subsequent to
      completion, prior to the assignment of such Mortgage Loan to the
      Mortgages Trustee.

44.   No Mortgage Loan has a Current Balance of more than (GBP)500,000.

45.   Each English Mortgage Loan and its Related Security in the Mortgage
      Portfolio was made not earlier than 1 July 1995 and each Scottish
      Mortgage Loan and its Related Security in the Mortgage Portfolio was
      made not earlier than 1 July 2001.

46.   Each Mortgage Loan was originated by the Seller in pounds sterling and
      is denominated in pounds sterling (or originated and denominated in euro
      at any time when the euro has been adopted as the lawful currency of the
      United Kingdom) and is currently repayable in pounds sterling.

47.   The Seller's Lending Criteria are consistent with the criteria that
      would be used by a reasonable and prudent mortgage lender.

48.   The Seller is not aware of any material claim outstanding under any of
      the Buildings Policies relating to a Mortgaged Property.

49.   No Mortgage Loan has an LTV greater than 95 per cent. In relation to
      Personal Secured Loans, the combined LTV of the maximum amount of credit
      provided under a Personal Secured Loan and the other Mortgage Loans
      secured on the same property is not greater than 95 per cent.

50.   Each Mortgage Loan (other than a Personal Secured Loan) has been made
      for one of the following purposes:

      (a) the purchase of land; or

                                      40
<PAGE>

      (b)   the provisions of dwellings or business premises on any land; or

      (c)   the alteration, enlarging, repair or improvement of a dwelling or
            business premises on any land provided that the creditor is the
            creditor under (i) an agreement by which the debtor is provided
            with credit for any of the purposes in (a) or (b) above or (ii) an
            agreement refinancing an agreement under which the debtor is
            provided with credit for any of the purposes in (a) or (b) above;
            or

      (d)   to refinance any existing indebtedness of the debtor, whether to
            the creditor or another person, under any agreement by which the
            debtor was provided with credit for any of the purposes in (a),
            (b) and (c) above.

                                      41
<PAGE>

                                    Part 2

1.    In respect of each of the Preliminary Prospectus as of its date (except
      insofar as the information contained therein has been amended,
      supplemented or deleted in the Prospectus) and the Prospectus as at the
      date thereof:

      (a)   each of them contained all information with respect to the Seller,
            the Initial Mortgage Portfolio and to the Notes which was material
            in the context of the issue and offering of the Notes (including
            all information required by English law);

      (b)   the statements contained in each of them relating to the Seller
            and the Initial Mortgage Portfolio were in every material
            particular true and accurate and not misleading;

      (c)   the opinions and intentions expressed in each of them with regard
            to the Seller and the Initial Mortgage Portfolio were honestly
            held, were reached after considering all relevant circumstances
            and were based on reasonable assumptions;

      (d)   there were no other facts in relation to the Seller, the Initial
            Mortgage Portfolio or the Notes the omission of which would, in
            the context of the issue and offering of the Notes, make any
            statement in either of them misleading; and

      (e)   all reasonable enquiries had been made by the Seller to ascertain
            such facts and to verify the accuracy of all such information and
            statements.

2.    The Seller has not acquired or owned or possessed any rights in the
      Mortgages Trustee or Funding such that it would "control" the Mortgages
      Trustee or Funding within the meaning of section 416 ICTA 1988.

      There is not any "connection" (within the meaning of section 87 Finance
      Act 1996) between either the Mortgages Trustee or Funding, respectively,
      and any Borrower.

                                      42
<PAGE>

                                    Part 3

The Seller 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 save for any which are
            created under or pursuant to the Funding Deed of Charge;

      (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.

                                      43
<PAGE>

                                  SCHEDULE 2
             FORMS OF TRANSFERS: REGISTERED AND UNREGISTERED LAND
                            AND SCOTTISH TRANSFERS

                                      44
<PAGE>

                                    Part 1

            FORM OF TRANSFER (REGISTERED LAND - ENGLAND AND WALES)

                  In the form of H.M. Land Registry Form TR4

                                      45
<PAGE>

                                    Part 2

           FORM OF TRANSFER (UNREGISTERED LAND - ENGLAND AND WALES)

This Transfer of Mortgages is made on [************] between NORTHERN ROCK PLC
(registered number 3273685) whose registered office is at Northern Rock House,
Gosforth, Newcastle upon Tyne NE3 4PL (hereinafter called the "Transferor") of
the one part and GRANITE FINANCE TRUSTEES LIMITED (registered number 79309)
whose registered office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX,
Channel Islands (hereinafter called the "Transferee") of the other part.

WHEREAS:

(A)   By the charges by way of legal mortgage ("Mortgages") brief particulars
      of which are set out in the Annexure hereto the properties brief
      particulars of which are similarly set out ("Properties") became
      security for the repayment of the moneys therein mentioned.

(B)   By a mortgage sale agreement dated 26 March 2001 made between inter
      alios the Transferor and the Transferee (as amended, restated, varied,
      supplemented or novated from time to time), the Transferor has agreed to
      sell and the Transferee has agreed to buy all right, title, interest and
      benefit (both present and future) in and under the Mortgages for the
      consideration hereinafter mentioned.

NOW THIS DEED WITNESSETH as follows:

1.    In consideration of the sums payable and the other consideration under
      the Agreement by the Transferee (receipt of which is hereby
      acknowledged) the Transferor with full title guarantee hereby transfers
      unto the Transferee all right, title, interest and benefit (both present
      and future) in and under the Mortgages including for the avoidance of
      doubt:

      (i)   the right to demand, sue for, recover, receive and give receipts
            for all principal moneys payable or to become payable under the
            Mortgages or the unpaid part thereof and the interest due or to
            become due thereon; and

      (ii)  the benefit of all securities for such principal moneys and
            interest, the benefit of all consents to mortgage signed by
            occupiers of the Properties, and the benefit of and the right to
            sue on all covenants with the Transferor in each Mortgage and the
            right to exercise all powers of the Transferor in relation to each
            Mortgage; and

      (iii) all the estate and interest in the Properties vested in the
            Transferor subject to redemption or cesser; and

      (iv)  all causes of action of the Transferor against any person in
            connection with any report, valuation, opinion, certificate or
            other statement of fact or opinion or consent to mortgage given in
            connection with any Mortgage or affecting the Transferor's
            decision to make the relevant advance.

                                      46
<PAGE>

IN WITNESS of which NORTHERN ROCK PLC has caused this Transfer to be executed
and delivered as a deed on the date which appears first above.

EXECUTED under THE COMMON SEAL of                )
NORTHERN ROCK PLC                                )
affixed by order of the Board of Directors       )
in the presence of:                              )

------------------------------
Authorised Signatory

Name:

Title:

------------------------------
Authorised Signatory

Name:

Title:

[Alternative   methods  of  executing  as  a  deed  will  be  acceptable  if
effective]

                                      47
<PAGE>

                                    Part 3

                  FORM OF TRANSFER (LAND REGISTER - SCOTLAND)

We, NORTHERN ROCK PLC, incorporated under the Companies Acts in England
(Registered Number 3273685) and having our Registered Office at Northern Rock
House, Gosforth, Newcastle upon Tyne NE3 4PL (the Transferor) CONSIDERING THAT
in terms of a Mortgage Sale Agreement among us the Transferor, GRANITE FINANCE
TRUSTEES LIMITED, incorporated under the law of Jersey (Registered Number
79309) and having its Registered Office at 22 Grenville Street, St Helier,
Jersey JE4 8PX, Channel Islands (the Transferee) and others dated 26 March
2001 (as amended, restated, varied, supplemented or novated from time to time,
the Mortgage Sale Agreement) we have sold our whole right, title and interest
in and to the Standard Securities and others hereinafter mentioned to the
Transferee NOW THEREFORE we the Transferor IN CONSIDERATION of the sums
payable in terms of and in implement pro tanto of the Mortgage Sale Agreement
HEREBY ASSIGN to the Transferee as trustee under and in terms of the Mortgages
Trust Deed among us, the Transferor, the Transferee and others dated 26 March
2001 (as amended, restated, varied, supplemented or novated from time to time,
the Mortgages Trust Deed) and its successor or successors as trustee or
trustees under and in terms of the Mortgages Trust Deed:

1     the Standard Securities granted by the respective parties whose names
      are specified in Column 3 of the Schedule annexed and executed as
      relative hereto in favour of us the Transferor for all sums due and to
      become due, to the extent of all sums now due and which may at any time
      or times hereafter become due under the said Standard Securities,
      registered said Standard Securities in the Land Register under the Title
      Number specified in the relative entry in Column 4 of the said Schedule
      on the date specified in the relative entry in Column 5 of the said
      Schedule; and

2     the whole rights and interest of us the Transferor in and under all and
      any personal bonds, credit agreements or agreements for loan (however
      constituted) secured by the said Standard Securities and granted by or
      entered into with the said respective parties whose names are specified
      in Column 3 of the said Schedule, together with all sums, present and
      future, due thereunder and all other rights, interests and benefits
      pertaining thereto:

With interest from and also arrears and accumulations of interest due and
unpaid as at [************]: And we grant warrandice: IN WITNESS WHEREOF these
presents typewritten on this [and the preceding] page are together with the
Schedule annexed hereto executed at [************] on the [************] day
of [************] as follows:

SUBSCRIBED for and on behalf of the said
NORTHERN ROCK PLC

by
   .............................              .................................

and
    ............................              .................................

                                      48
<PAGE>

             Schedule referred to in the foregoing Assignation by
                               Northern Rock plc
                 in favour of GRANITE FINANCE TRUSTEES LIMITED

<TABLE>
<CAPTION>

        1               2                    3                    4                   5

   Account No.       Address       Borrowers Full Names     Title Number      Registration Date
<S>                  <C>           <C>                      <C>               <C>

</TABLE>

                                      49
<PAGE>

                                    Part 4

                 FORM OF TRANSFER (SASINE REGISTER - SCOTLAND)

We, NORTHERN ROCK PLC, incorporated under the Companies Acts in England
(Registered Number 3273685) and having our Registered Office at Northern Rock
House, Gosforth, Newcastle upon Tyne NE3 4PL (the Transferor) CONSIDERING THAT
in terms of a Mortgage Sale Agreement among us the Transferor, GRANITE FINANCE
TRUSTEES LIMITED, incorporated under the law of Jersey (Registered Number
79309) and having its Registered Office at 22 Grenville Street, St Helier,
Jersey JE4 8PX, Channel Islands (the Transferee) and others dated 26 March
2001 (as amended, restated, varied, supplemented or novated from time to time,
the Mortgage Sale Agreement) we have sold our whole right, title and interest
in and to the Standard Securities and others hereinafter mentioned to the
Transferee NOW THEREFORE we the Transferor IN CONSIDERATION of the sums
payable in terms of and in implement pro tanto of the Mortgage Sale Agreement
HEREBY ASSIGN to the Transferee as trustee under and in terms of the Mortgages
Trust Deed among us, the Transferor, the Transferee and others dated 26 March
2001 (as amended, restated, varied, supplemented or novated from time to time,
the Mortgages Trust Deed) and its successor or successors as trustee or
trustees under and in terms of the Mortgages Trust Deed:

1     the Standard Securities granted by the respective parties whose names
      are specified in Column 3 of the Schedule annexed and executed as
      relative hereto in favour of us the Transferor for all sums due and to
      become due, to the extent of all sums now due and which may at any time
      or times hereafter become due under the said Standard Securities,
      recorded said Standard Securities in the Register for the County
      specified in the relative entry in Column 4 of the said Schedule on the
      date specified in the relative entry in Column 5 of the said Schedule;
      and

2     the whole rights and interest of us the Transferor in and under all and
      any personal bonds, credit agreements or agreements for loan (however
      constituted) secured by the said Standard Securities and granted by or
      entered into with the said respective parties whose names are specified
      in Column 3 of the said Schedule, together with all sums, present and
      future, due thereunder and all other rights, interests and benefits
      pertaining thereto:

With interest from and also arrears and accumulations of interest due and
unpaid as at [************]: And we grant warrandice: IN WITNESS WHEREOF these
presents typewritten on this [and the preceding] page are together with the
Schedule annexed hereto executed at [************] on the [************] day
of [************] as follows:

SUBSCRIBED for and on behalf of the said
NORTHERN ROCK PLC

by
   .............................              .................................

and
    ............................              .................................

REGISTER on behalf of the within named GRANITE FINANCE TRUSTEES LIMITED as
trustee within mentioned in the REGISTERS of the COUNTIES of [************]

                                      50
<PAGE>

<TABLE>
<CAPTION>

              Schedule referred to in the foregoing Assignation by Northern Rock PLC
                          in favour of Granite Finance Trustees Limited

        1               2                    3                    4                   5

   Account No.       Address       Borrowers Full Names     County            Recording
<S>                  <C>           <C>                      <C>               <C>

</TABLE>

                                      51
<PAGE>

                                  SCHEDULE 3
                       ASSIGNMENT OF INSURANCE CONTRACTS

THIS ASSIGNMENT is made by way of deed on [************]

BETWEEN

NORTHERN ROCK PLC (registered number 3273685) whose registered office is at
Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL ("Northern Rock");
and

GRANITE FINANCE TRUSTEES LIMITED (registered number 79309) whose registered
office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel Islands
(the "Mortgages Trustee")

WHEREAS

(A)   By a mortgage sale agreement dated 26 March 2001 (as amended, varied,
      supplemented or novated from time to time "Mortgage Sale Agreement") and
      made between Northern Rock, as Seller, the Mortgages Trustee, Granite
      Finance Funding Limited ("Funding") and The Bank of New York, as
      security trustee (the "Security Trustee"), certain mortgages and
      standard securities (the "Mortgages") and the loans secured thereby were
      agreed to be transferred to the Mortgages Trustee.

(B)   Northern Rock has the benefit of the Insurance Contracts, as defined in
      the Master Definitions Schedule dated 26 March 2001 (as amended, varied,
      supplemented or novated from time to time) which relate to the Mortgages
      and the mortgaged properties upon which they are secured (the "Mortgaged
      Properties") as well as to certain mortgages and properties in which the
      Mortgages Trustee has no interest.

(C)   This Assignment is supplemental to the Mortgage Sale Agreement.

NOW THIS DEED WITNESSETH as follows:

In further consideration of the sums and the other consideration referred to
in the Mortgage Sale Agreement, Northern Rock with full title guarantee hereby
assigns unto the Mortgages Trustee absolutely all the estate and interest in
the Insurance Contracts including the rights to receive the proceeds of any
claim to the extent only that such estate, interest, and rights relate to the
Mortgaged Properties and/or the Mortgages, to hold the same unto the Mortgages
Trustee absolutely.

                                      52
<PAGE>

IN WITNESS of which NORTHERN ROCK PLC has caused this Assignment to be
executed and delivered as a Deed or the date which first appears above.

EXECUTED under THE COMMON SEAL of               )
NORTHERN ROCK PLC                               )
affixed by order of the Board of Directors      )
in the presence of:                             )

------------------------------
Authorised Signatory

Name:

Title:

------------------------------
Authorised Signatory

Name:

Title:

                                      53
<PAGE>

<TABLE>
<CAPTION>

                                             SCHEDULE 4
                                        INSURANCE CONTRACTS

Policy number              Insurer                      Policy name/type           Date of Policy

<S>                        <C>                          <C>                        <C>
1. NR 9501                 Northern Rock Mortgage       Mortgage Indemnity         18.07.1996
                           Indemnity Company Limited

2.(a)BL-HHS                AXA General Insurance        Supercover Buildings       01.01.1997
                           Limited                      and Contents

(b)DR-FHH                  AXA General Insurance        Superchoice Buildings      01.01.1997
                           Limited                      and Contents

(c)DR-SGD                  AXA General Insurance        Supercover Gold            01.11.1999
                           Limited                      Buildings and Contents

(d)AG112/Z1413248          AXA General Insurance        Contingency Insurance      18.10.1999
                           Limited

(e)AG112/Z1413256          AXA General Insurance        Properties in              18.10.1999
                           Limited                      Possession

(f)BL-BBR                  AXA General Insurance        Cover Me Buildings         18.12.2000
                           Limited                      and Contents

</TABLE>

                                                 54
<PAGE>

                                  SCHEDULE 5
                                    Part 1
                           ASSIGNMENT OF GUARANTEES

THIS ASSIGNMENT is made by way of deed on [************]

BETWEEN:

NORTHERN ROCK PLC (registered number 3273685) whose registered office is at
Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL ("Northern Rock");
and

GRANITE FINANCE TRUSTEES LIMITED (registered number 79309) whose registered
office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel Islands
(the "Mortgages Trustee")

WHEREAS:

(A)   By a mortgage sale agreement dated 26 March 2001 ( as amended, varied,
      supplemented or novated from time to time the "Mortgage Sale Agreement")
      and made between Northern Rock, the Mortgages Trustee, Granite Finance
      Funding Limited and The Bank of New York, certain mortgages (the
      "Mortgages") were agreed to be transferred and assigned to the Mortgages
      Trustee.

(B)   Northern Rock has the benefit of the Guarantees as defined in the Master
      Definitions Agreement dated 26 March 2001 (as amended, varied,
      supplemented or novated from time to time) which relate to certain of
      the Mortgages.

(C)   This Assignment is made pursuant to the Mortgage Sale Agreement.

NOW THIS DEED WITNESSETH as follows:

In further consideration of the sums and the other consideration referred to
in the Mortgage Sale Agreement, Northern Rock with full title guarantee hereby
assigns unto the Mortgages Trustee all its right, title, interest and benefit
(both present and future) in the Guarantees relating to the Mortgages the
subject of a Transfer of even date herewith including for the avoidance of
doubt:

(i)   the benefit of and the right to sue on all covenants with and
      undertakings to Northern Rock in each Guarantee and the right to
      exercise all powers of Northern Rock in relation to each Guarantee; and

(ii)  all the estate and interest in the Guarantees vested in Northern Rock;

to hold the same unto the Mortgages Trustee absolutely.

IN WITNESS of which NORTHERN ROCK PLC has caused this Assignment to be
executed and delivered as a deed on the date which first appears above.

                                      55
<PAGE>

EXECUTED under THE COMMON SEAL of               )
NORTHERN ROCK PLC                               )
affixed by order of the Board of Directors      )
in the presence of:                             )

------------------------------
Authorised Signatory

Name:

Title:

------------------------------
Authorised Signatory

Name:

Title:

[Alternative methods of executing as a deed will be acceptable if effective]

                                      56
<PAGE>

                                    Part 2

                           ASSIGNATION OF GUARANTEES

ASSIGNATION

by

NORTHERN ROCK PLC, incorporated in England (Registered Number 3273685) whose
Registered Office is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3
4PL (Northern Rock);

in favour of

GRANITE FINANCE TRUSTEES LIMITED, incorporated in Jersey (Registered Number
79309) whose Registered Office is at 22 Grenville Street, St Helier, Jersey
JE4 8PX, Channel Islands (the "Mortgages Trustee")

WHEREAS:

(A)   By a mortgage sale agreement dated 26 March 2001 (as amended, varied,
      supplemented or novated from time to time, the "Mortgage Sale
      Agreement") and made between Northern Rock, the Mortgages Trustee,
      Granite Finance Funding Limited and The Bank of New York, certain
      mortgage loans and their related security (the "Mortgages") were agreed
      to be transferred and assigned to the Mortgages Trustee;

(B)   Northern Rock has the benefit of the Guarantees as defined in the Master
      Definitions Agreement dated 26 March 2001 (as amended, varied,
      supplemented or novated from time to time) which relate to certain of
      the Mortgages;

(C)   This Assignation is made pursuant to the Mortgage Sale Agreement;

NOW THEREFORE the parties hereby AGREE as follows:

1     Assignation

      Northern Rock hereby assigns to the Mortgage Trustee with absolute
      warrandice its whole right, title, benefit and interest, present and
      future, in and to the Guarantees governed by Scots law and detailed in
      the Schedule hereto (the "Scottish Guarantees") relating to the
      Mortgages including for the avoidance of doubt the benefit of and the
      right to sue on all obligations and undertakings to Northern Rock in
      each Scottish Guarantee and the right to exercise all powers of Northern
      Rock in relation to each Scottish Guarantee.

                                      57
<PAGE>

2     Intimation

      Northern Rock hereby undertakes to the Mortgages Trustee that it will,
      within fourteen days of the execution of this deed, serve a notice of
      assignation by recorded delivery post in such form as the Mortgage
      Trustee shall approve upon each of the Guarantors pursuant to each
      Scottish Guarantee.

3     Governing Law

      This deed shall be governed by Scots law and the parties hereto submit
      to the non-exclusive jurisdiction of the Scottish courts.

IN WITNESS WHEREOF these presents consisting of this and the preceding page
together with the Schedule annexed hereto are executed as follows:

SUBSCRIBED for and on behalf of the said
NORTHERN ROCK PLC

at
   .............................              .................................

on
   .............................              .................................

by
   .............................

and
    ............................

SUBSCRIBED for and on behalf of the said
GRANITE FINANCE TRUSTEES LIMITED

at
   .............................              .................................

on
   .............................              .................................

by
   .............................

and
    ............................

                                      58
<PAGE>

      Schedule referred to in the foregoing Assignation of Guarantees by
        Northern Rock PLC in favour of Granite Finance Trustees Limited

                            [Details of Guarantees]

                                      59
<PAGE>

                                  SCHEDULE 6
                         NEW MORTGAGE PORTFOLIO NOTICE

                                                          Dated [************]

1.    It is hereby agreed for the purpose of this notice the "Principal
      Agreement" shall mean the Mortgage Sale Agreement dated 26 March 2001
      made between (1) NORTHERN ROCK PLC (the "Seller"), (2) GRANITE FINANCE
      TRUSTEES LIMITED (the "Mortgages Trustee") (3) GRANITE FINANCE FUNDING
      LIMITED ("Funding") and (4) THE BANK OF NEW YORK (the "Security
      Trustee"), as the same may be amended, varied, supplemented or novated
      from time to time.

2.    Save where the context otherwise requires, words and expressions in this
      notice shall have the same meanings respectively as when used in the
      Principal Agreement.

3.    In accordance with and subject to Clause 4.1 (Agreement to Assign) of
      the Principal Agreement, upon receipt by the Seller of the duplicate of
      this notice signed by the Mortgages Trustee, there shall exist between
      the Seller and the Mortgages Trustee an agreement (the "Agreement for
      Sale") for the sale and assignment by the Seller to the Mortgages
      Trustee of the New Mortgage Loans and the Related Security more
      particularly described in the Schedule hereto (other than any New
      Mortgage Loans and their Related Security which have been redeemed in
      full prior to the next following Assignment Date). Completion of such
      sale shall take place, subject to the provisions of the Principal
      Agreement, on [************] (the "Assignment Date").

4.    The Seller hereby confirms that the conditions required to be fulfilled
      pursuant to Clause 4.2 (Conditions to Effecting an Assignment of New
      Mortgage Loans) of the Principal Agreement have been fulfilled [/save
      for conditions ( ) ( ) and ( )]

5.    The Agreement for Sale shall incorporate, mutatis mutandis, the relevant
      provisions of the Principal Agreement.

Signed for and on behalf of                     )
NORTHERN ROCK PLC                               )
by:                                             )

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

[On duplicate

We hereby acknowledge receipt of the New Mortgage Portfolio Notice dated
[************], and confirm [that the conditions set out in paragraph ( ) ( )
and ( ) of Clause 4.2 (Conditions to Effecting an Assignment of New Mortgage
Loans) have been waived and] the sale and assignment of the New Mortgage Loans
as set out in that notice.

                                      60
<PAGE>

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

                               ]
-------------------------------

                                      61
<PAGE>

                                   Schedule

1                     2                       3                     4

Account No.           Property Address        Name(s)               Date of
                                                                    Mortgage
                                                                    Completion

                                      62
<PAGE>

                                  SCHEDULE 7
                            LOAN REPURCHASE NOTICE

                                                          Dated [************]

1.    We refer to the Mortgage Sale Agreement dated 26 March 2001 (as amended,
      varied, supplemented or novated from time to time the "Principal
      Agreement") made between (1) NORTHERN ROCK PLC (the "Seller"), (2)
      GRANITE FINANCE TRUSTEES LIMITED (the "Mortgages Trustee") (3) GRANITE
      FINANCE FUNDING LIMITED ("Funding") and (4) THE BANK OF NEW YORK (the
      "Security Trustee").

2.    Save where the context otherwise requires, words and expressions in this
      notice shall have the same meanings respectively as when used in the
      Principal Agreement.

3.    We hereby send this notice pursuant to and in accordance with Clause
      [8.4 (Repurchase)/8.5 (Purchase of Product Switches, Further Advances
      and purchases relating to Personal Secured Loans)]* of the Principal
      Agreement, upon receipt of which you as [the Seller/the Mortgages
      Trustee]* will be required to [repurchase from us/re-sell to us/purchase
      from us/sell to us]* the Mortgage Loan(s) and Related Security set out
      in the attached schedule in accordance with the terms of Clause 8
      (Repurchase) of the Principal Agreement on [insert date].

Signed for and on behalf of                     )
[GRANITE FINANCE TRUSTEES                       )
LIMITED/NORTHERN ROCK PLC]                      )
by:                                             )

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

* Delete as appropriate

                                      63
<PAGE>

                                   Schedule

1                      2                       3                    4

Account No.            Property Address        Name(s)              Date of
                                                                    Mortgage
                                                                    Completion

                                      64
<PAGE>

                                  SCHEDULE 8

<PAGE>

                       FORM OF NOTIFICATION TO BORROWERS

[To:  Borrower]

Dear Sirs,

Northern Rock

Account No.[************]

We hereby notify you that on [************] 2001, Northern Rock agreed to sell
your mortgage to Granite Finance Trustees Limited.

[Additional text will be allowed with Mortgages Trustee's and Security
Trustee's consent]

Yours faithfully,

Northern Rock plc

                                      65
<PAGE>

                                  SCHEDULE 9

<PAGE>

      OFFER UNDER CLAUSE 8.6 (REPURCHASE OF FIXED RATE MORTGAGE LOANS)

To:   Northern Rock plc
      Northern Rock House
      Gosforth
      Newcastle upon Tyne
      NE3 4PL

From: Granite Finance Trustees Limited
      22 Grenville Street
      St Helier
      Jersey
      Channel Islands
      JE4 8PX

Date: [************]

Pursuant to Clause 8.6 (Repurchase of Fixed Rate Mortgage Loans) of the
mortgage sale agreement dated 26 March 2001 made between (1) Northern Rock
plc, (2) Granite Finance Funding Limited, (3) Granite Finance Trustees Limited
and (4) The Bank of New York (as amended, varied, supplemented or novated from
time to time the "Agreement") we hereby offer to re-sell to you the Mortgage
Loan(s) together with their Related Security, details of which are set out in
the attached print out, if such Mortgage Loan(s) become Re-Fixed Mortgage
Loans within 3 months of the expiry of the relevant initial fixed rate periods
applicable to that/those Mortgage Loans. If you wish to do so, please accept
this offer by payment to us of the consideration for the repurchase of the
relevant Mortgage Loan(s) and Related Security in accordance with Clause 8.6
(Repurchase of Fixed Rate Mortgage Loans) of the Agreement if such Mortgage
Loan(s) become Re-Fixed Mortgage Loans within 3 months of the expiry of the
relevant initial fixed rate periods applicable to that/those Mortgage Loans.
Capitalised terms used in this notice and not defined herein have the meanings
given to them in the Agreement.

Signed by or on behalf of                       )
GRANITE FINANCE TRUSTEES LIMITED                )
as Seller                                       )
[acting as its attorney NORTHERN ROCK PLC:]     )

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

                                      66
<PAGE>

                                  SCHEDULE 10

                        POWER OF ATTORNEY IN FAVOUR OF
            THE MORTGAGES TRUSTEE, FUNDING AND THE SECURITY TRUSTEE

THIS DEED OF POWER OF ATTORNEY is made on the [o] by:

(1)   NORTHERN ROCK PLC whose registered office is at Northern Rock House,
      Gosforth, Newcastle upon Tyne NE3 4PL (registered number 3273685) in its
      capacity as Seller,

in favour of each of:

(2)   GRANITE FINANCE TRUSTEES LIMITED whose registered office is at 22
      Grenville Street, St. Helier, Jersey JE4 8PX, Channel Islands
      (registered number 79309) in its capacity as Mortgages Trustee;

(3)   GRANITE FINANCE FUNDING LIMITED, acting out of its branch office
      established in England (registered overseas company number FC022999 and
      branch number BR005916) at 69 Park Lane, Croydon CR9 1TQ and

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

WHEREAS:

(A)   By virtue of a mortgage sale agreement (the "Mortgage Sale Agreement")
      dated 26 March 2001 and as subsequently amended, and made between (1)
      the Seller, (2) the Mortgages Trustee (3) Funding and (4) the Security
      Trustee, provision was made for the execution by the Seller of this
      Power of Attorney.

(B)   The provisions of the Master Definitions Schedule as amended and
      restated by (and appearing in Appendix 1 to) the Master Definitions
      Schedule [       ] Amendment and Restatement Deed made on [ ] 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 Deed.

NOW THIS DEED WITNESSETH:

1.    The Seller irrevocably and by way of security for the performance of the
      covenants, conditions and undertakings on the part of the Seller
      contained in the Mortgage Sale Agreement and the Administration
      Agreement HEREBY APPOINTS each of Funding, the Mortgages Trustee and the
      Security Trustee (each an "Attorney") and any receiver and/or
      administrator appointed from time to time in respect of Funding and/or
      the Mortgages Trustee or their assets severally to be its true and
      lawful attorney for the Seller and in the Seller's name or otherwise to
      do any act, matter or thing which any Attorney considers necessary for

                                      67
<PAGE>

      the protection or preservation of that Attorney's interest in the
      Mortgage Loans, the Mortgages, the Mortgage Deeds and their Related
      Security or which ought to be done under the covenants, undertakings and
      provisions contained in the Mortgage Sale Agreement including (without
      limitation) any or all of the following that is to say:

      (a)   to exercise its rights, powers and discretions under the Mortgage
            Loans, the Mortgages, the Mortgage Deeds and the Related Security
            including the right to fix the rate or rates of interest payable
            under the Mortgage Loans in accordance with the terms thereof
            (including whilst such Mortgage Loans subsist and subject to the
            consent of the Mortgages Trustee being given to the setting of
            such rates), setting the Standard Variable Rate of the Seller,
            such other discretionary rates and margins applicable to the
            Mortgage Loans and (other than in respect of the Security Trustee)
            the rate of (and terms relating to) the Existing Borrowers' Re-Fix
            Rate in the circumstances referred to in Clause 4 (Interest Rates)
            of the Administration Agreement provided that nothing in this
            Clause shall prevent the Seller (or any of its attorneys from time
            to time) from setting higher rates (and in the case of the
            Existing Borrowers' Re-Fix Rate, imposing terms more advantageous
            to the Mortgages Trustee) than those set or to be set or required
            or to be required by the Mortgages Trustee or Funding under this
            power of attorney;

      (b)   to exercise all the powers exercisable by the Seller by reason of
            its remaining for the time being the registered owner at H.M. Land
            Registry or registered or recorded heritable creditor in the
            Registers of Scotland of any of the Mortgage Loans, the Mortgages,
            the Mortgage Deeds and the Related Security and in particular, but
            without prejudice to the generality of the foregoing, to make
            Further Advances to Borrowers;

      (c)   to demand, sue for and receive all moneys due or payable under the
            Mortgage Loans, the Mortgages, the Mortgage Deeds and the Related
            Security or any such collateral security or related rights;

      (d)   to execute, sign, seal and deliver (using the company seal of the
            Seller where appropriate) a conveyance, assignation or transfer of
            the Mortgage Loans, the Mortgages, the Mortgage Deeds and the
            Related Security or any of them to the Mortgages Trustee and its
            successors in title or other person or persons entitled to the
            benefit thereof;

      (e)   to execute, sign, seal and deliver (using the company seal of the
            Seller where appropriate) a conveyance, assignment, assignation or
            transfer of the Related Security or any item comprised therein (to
            the extent only that such item or items relate to the Mortgage
            Loans) to the Mortgages Trustee and its successors in title or
            other person or persons entitled to the benefit thereof or
            entitled to be registered or recorded at H.M. Land Registry or the
            Registers of Scotland as proprietor or heritable creditor thereof
            (as the case may be);

      (f)   to discharge the Mortgages or the Related Security or any of them
            and to sign, seal, deliver and execute such receipts, releases,
            surrenders, instruments and deeds as may

                                      68
<PAGE>

            be required or  advisable  in order to  discharge  the  relevant
            Mortgaged  Property or  Properties  from the Mortgages or any of
            them; and

      (g)   to do every other act or thing which the Seller is obliged to do
            under the Mortgage Sale Agreement or which that Attorney may
            otherwise consider to be necessary proper or expedient for fully
            and effectually vesting or transferring the interests sold
            thereunder in the Mortgage Loans, the Mortgages, the Mortgage
            Deeds and their Related Security or any or each of them and/or the
            Seller's estate right and title therein or thereto in the
            Mortgages Trustee and its successors in title or other person or
            persons entitled to the benefit thereof (as the case may be) in
            the same manner and as fully and effectually in all respects as
            the Seller could have done.

2.    Each Attorney shall have the power by writing under its hand by an
      officer of the Attorney from time to time to appoint a substitute who
      shall have power to act on behalf of the Seller as if that substitute
      shall have been originally appointed Attorney by this deed (including,
      without limitation, the power of further substitution) and/or to revoke
      any such appointment at any time without assigning any reason therefor.

3.    The laws of England shall apply to this deed and the interpretation
      thereof and to all acts of the Attorney carried out or purported to be
      carried out under the terms hereof.

4.    The Seller hereby agrees at all times hereafter to ratify and confirm
      whatsoever the said Attorney or its attorneys shall lawfully do or cause
      to be done in and concerning the Mortgage Loans, the Mortgages or the
      Mortgage Deeds or their Related Security by virtue of this deed.

IN WITNESS whereof the Seller has executed this document as a deed the day and
year first before written.

EXECUTED under THE COMMON SEAL of               )
NORTHERN ROCK PLC                               )
affixed in the presence of:                     )

------------------------------
Authorised Signatory

Name:

Title:

------------------------------
Authorised Signatory

Name:

Title:

                                      69
<PAGE>

                                  SCHEDULE 11

                          FORM OF SCOTTISH TRUST DEED

DECLARATION OF TRUST

among

NORTHERN ROCK PLC, incorporated under the Companies Acts in England
(registered number 3273685), having its registered office at Northern Rock
House, Gosforth, Newcastle upon Tyne NE3 4PL (in its capacity as seller of the
Mortgage Loans, the "Seller" and, in its capacity as a beneficiary of the
Mortgages Trust, the "Seller Beneficiary");

GRANITE FINANCE TRUSTEES LIMITED, incorporated under the laws of Jersey
(registered number 79309), and having its registered office at 22 Grenville
Street, St. Helier, Jersey, JE4 8PX, Channel Islands (the "Mortgages
Trustee"); and

GRANITE FINANCE FUNDING LIMITED, incorporated under the laws of Jersey
(registered number 79308), but acting out of its branch office established in
England (registered overseas company number FC022999 and branch number
BR005916) at 69 Park Lane, Croydon CR9 1TQ ("Funding" and, in its capacity as
a beneficiary of the Mortgages Trust, the "Funding Beneficiary" and, together
with the Seller Beneficiary, the "Beneficiaries" and each a "Beneficiary").

WHEREAS:

(A)   Title to the Scottish Trust Property referred to below is held by and
      vested in the Seller;

(B)   In terms of the Mortgages Trust Deed entered into among the Seller,
      Funding and the Mortgages Trustee dated 26 March 2001 (as amended,
      restated, varied, supplemented or novated from time to time, the
      "Mortgages Trust Deed") and the Mortgages Trust constituted in terms
      thereof the Mortgages Trustee holds the Trust Property on trust for the
      Beneficiaries;

(C)   In terms of the Mortgage Sale Agreement entered into among the Seller,
      the Mortgages Trustee, Funding and the Security Trustee dated 26 March
      2001 (as amended, restated, varied, supplemented or novated from time to
      time, the "Mortgage Sale Agreement") the Seller has agreed to sell and
      assign the Scottish Trust Property to the Mortgages Trustee to be held
      thereafter by the Mortgages Trustee under and in terms of the Mortgages
      Trust; and

(D)   In implementation of Clause 4.4 of the Mortgage Sale Agreement and
      pending the taking of legal title to the Scottish Trust Property by the
      Mortgages Trustee, the Seller has undertaken to grant this deed;

NOW THEREFORE the parties HEREBY AGREE and DECLARE as follows:

                                      70
<PAGE>

1     Interpretation

In this deed:-

1.1   Words and expressions defined in the Master Definitions Schedule as
      amended and restated by (and appearing in Appendix 1 to) the Master
      Definitions [       ] Amendment and Restatement Deed made on [       ]
      between, among others, the parties hereto (as the same have been and may
      be further amended , restated, varied or supplemented from time to time
      with the consent of the parties thereto) shall, except where the context
      otherwise requires and save where otherwise defined herein, have the
      same meanings in this deed, including the recitals hereto, and this deed
      shall be construed in accordance with the interpretation provisions set
      out in Clause 2 thereof; and

1.2   "Scottish Trust Property" shall mean the Scottish Mortgage Loans and the
      Scottish Mortgages and other Related Security relative thereto brief
      particulars of which are detailed in the schedule annexed and executed
      as relative hereto, together with:

      a)    all principal sums (including all Further Advances, Further Draws
            and Re-Draws), interest and expenses, present or future, comprised
            therein and secured thereby and the right to demand, recover,
            receive and give receipts for the same;

      b)    the Seller's whole right and interest in the Mortgaged Properties
            secured by the said Scottish Mortgages;

      c)    all rights of action of the Seller against any person in
            connection with any report, valuation, opinion, certificate,
            consent or other statement of fact or opinion given in connection
            with any of the said Scottish Mortgage Loans and their Related
            Security;

      d)    all powers and remedies for enforcing the said Scottish Mortgage
            Loans and their Related Security and all proceeds resulting
            therefrom; and

      e)    all other monies, rights, interests, benefits and others
            pertaining thereto or deriving therefrom, including the benefit
            and proceeds of any insurance policy pertaining thereto.

2     Declaration of Trust

      The Seller hereby DECLARES that from and after the date hereof it holds
      and, subject to Clause 9 (Termination of Trust) hereof, shall henceforth
      hold the Scottish Trust Property and its whole rights, title, benefit
      and interest, present and future, therein and thereto in trust
      absolutely for the Mortgages Trustee and its assignees (whether
      absolutely or in security) whomsoever.

3     Intimation

      The Seller hereby intimates to the Mortgages Trustee the coming into
      effect of the trust hereby declared and created and the Mortgages
      Trustee by its execution hereof immediately subsequent to the execution
      of this Deed by the Seller acknowledges such intimation.

                                      71
<PAGE>

4     Dealings with Trust Property and Negative Pledge

      The Seller warrants and undertakes to the Mortgages Trustee that:

      4.1   as at the date hereof, it holds (subject to any pending
            registration or recording in the Registers of Scotland) legal
            title to the Scottish Trust Property unencumbered by any fixed or
            floating charge or other Security Interest;

      4.2   it shall not create or agree to create any fixed or floating
            charge or other Security Interest over or which may attach to or
            affect the whole or any part of the Scottish Trust Property or
            otherwise dispose of the same at any time when such property or
            part thereof remains subject to the trust hereby created; and

      4.3   it shall deal with the Scottish Trust Property (including without
            limitation the calculation and setting of any interest rate
            applicable thereto) in accordance with the provisions of the
            Transaction Documents and the specific written instructions (if
            any) of the Mortgages Trustee or its foresaids and shall take,
            subject to Clause 9 (Termination of Trust) hereof, any such action
            as may be necessary (including without limitation the raising or
            defending of any proceedings in any court of law whether in
            Scotland or elsewhere) to secure or protect the title to the
            Scottish Trust Property but only in accordance with the specific
            written instructions (if any) of the Mortgages Trustee or its
            foresaids.

5     Change of Trustee

      Except with the prior written consent of the Mortgages Trustee or its
      foresaids and (for so long as each retains any right or interest in the
      Scottish Trust Property) Funding and the Security Trustee, the Seller
      shall not be entitled to resign office as a trustee or assume a new
      trustee or trustees under this Deed.

6     Power of Beneficiary

      6.1   The Mortgages Trustee, as beneficiary hereunder, shall have the
            right in the circumstances stated in Clause 6 (Perfection of the
            Assignment) of the Mortgage Sale Agreement to complete its title
            to the Scottish Trust Property or any part thereof or to call upon
            the Seller to execute and deliver to the Mortgages Trustee or its
            foresaids valid assignations and transfers (including where
            applicable Scottish Transfers) of the Scottish Trust Property or
            any part thereof, and that notwithstanding the winding-up of the
            Seller or the administration of the Seller, or the appointment of
            any receiver to all or any part of the Scottish Trust Property.

      6.2   Without prejudice to the generality of Clause 6.1, the Seller
            undertakes to the Mortgages Trustee and binds and obliges itself
            that, upon the occurrence of any one of the events specified in
            Clause 6.1(a) to (f) of the Mortgage Sale Agreement, it will
            within five London Business Days of such occurrence provide such
            information as is necessary to enable the Mortgages Trustee to
            complete Scottish Transfers (including all schedules and annexures
            thereto) in relation to the whole of the Scottish Mortgages
            comprised within the Scottish Trust Property.

                                      72
<PAGE>

      6.3   For further assuring the said rights and powers specified in this
            Clause 6, the Seller has granted a power of attorney in favour of
            the Mortgages Trustee, Funding and the Security Trustee
            substantially in the form set out in Schedule 10 to the Mortgage
            Sale Agreement.

7     Mortgages Trustee Declaration of Trust

      7.1   The Mortgages Trustee by its said execution of this Deed hereby
            DECLARES that its whole right, title and beneficial interest in
            and to the Scottish Trust Property in terms of this Deed are and
            shall be held (to the extent not already so held) by the Mortgages
            Trustee under and in terms of the Mortgages Trust and all monies
            received or held by the Mortgages Trustee relating thereto or
            deriving therefrom have been and shall be comprised in the Trust
            Property as defined in the Mortgages Trust Deed and shall be
            subject to and administered by the whole terms and conditions of
            the Mortgages Trust Deed and the Administration Agreement.

      7.2   Each of the Seller, the Seller Beneficiary, Funding and the
            Funding Beneficiary hereby acknowledge, accept and agree to the
            declaration constituted by and the whole other terms and
            conditions of the foregoing Clause 7.1.

8     Mortgages Trust Intimation

      The Mortgages Trustee hereby intimates to the Beneficiaries of the
      Mortgages Trust, the declaration of trust made in terms of Clause 7
      hereof and the Beneficiaries of the Mortgages Trust by their respective
      executions of this Deed acknowledge such intimation.

9     Termination of Trust

      If at any time during the subsistence of the trust hereby declared and
      created:

      9.1   full legal title to any part or parts of the Scottish Trust
            Property is taken by the Mortgages Trustee or its foresaids in
            accordance with the provisions of Clause 6 (Perfection of the
            Assignment) of the Mortgage Sale Agreement (which in the case of
            any Scottish Mortgage shall be constituted by the registration or
            recording of the title thereto in the Registers of Scotland); or

      9.2   any Scottish Mortgage Loan and Related Security comprised within
            the Scottish Trust Property has been repurchased by the Seller
            pursuant to Clauses 8.4 to 8.6 (inclusive) of the Mortgage Sale
            Agreement; or

      9.3   any such Scottish Mortgage Loan and Related Security has been
            redeemed in full and therefore no longer forms part of the
            Mortgage Portfolio; then

      the trust hereby declared and created shall (but only when the relevant
      events or transaction have been completed irrevocably, validly and full)
      ipso facto fall and cease to be of effect in respect of such part or
      parts of the Scottish Trust Property but shall continue in full force
      and effect in respect of the whole remainder (if any) of the Scottish
      Trust Property.

                                      73
<PAGE>

10    Variation

      This Deed and the trust hereby declared and created shall not be varied
      in any respect without the consent in writing of the Mortgages Trustee
      or its foresaids and (for so long as each retains any right or interest
      in the Scottish Trust Property) Funding and the Security Trustee.

11    Governing Law

11.1  This Deed shall be governed by, and construed in accordance with, Scots
      law, other than Clauses 7 and 8 hereof which shall be governed by, and
      construed in accordance with, English law.

11.2  The parties hereto submit to the non-exclusive jurisdiction of the
      Scottish courts so far as not already subject thereto and waive any
      right or plea of forum non conveniens in respect of such jurisdiction.

12    Registration

      The parties consent to the registration of this deed for preservation.

IN WITNESS WHEREOF these presents consisting of this and the preceding [four]
pages together with the Schedule hereto are subscribed by the Seller, the
Mortgages Trustee and Funding as follows:

As Seller and as Seller Beneficiary:

SUBSCRIBED by
NORTHERN ROCK PLC
acting by:

                              Director                                Director
..............................              ......................
(Print Full Name)                               (Signature)

                              Director/                              Director/
..............................              ......................
(Print Full Name)              Secretary        (Signature)         Secretary

all together at
on

                                      74
<PAGE>

As Mortgages Trustee:

SUBSCRIBED by
GRANITE FINANCE TRUSTEES LIMITED
acting by:

                              Director                                Director
..............................              ......................
(Print Full Name)                               (Signature)

                              Director/                              Director/
..............................              ......................
(Print Full Name)              Secretary        (Signature)         Secretary

all together at
on

As Funding and as Funding Beneficiary:

SUBSCRIBED by
GRANITE FINANCE FUNDING LIMITED
acting by:

                              Director                                Director
..............................              ......................
(Print Full Name)                               (Signature)

                              Director/                              Director/
..............................              ......................
(Print Full Name)              Secretary        (Signature)         Secretary

all together at
on

                                      75
<PAGE>

This is the Schedule to the foregoing Scottish Trust Deed between Northern
Rock PLC, Granite Finance Trustees Limited and Granite Finance Funding
Limited

                 Scottish Mortgage Loans and Related Security

    1                       2                     3                     4
Account No.         Property Address        Borrower Name(s)        Date of
                                                                    Mortgage
                                                                    Completion

                                      76
<PAGE>

                                  SCHEDULE 12

                              LENDING CRITERIA/1/

General

To proceed with obtaining a Mortgage Loan, each prospective Borrower completes
an application form which includes information with respect to the applicant's
income from all sources, current employment details, bank account information
(where the Borrower has a bank account), current mortgage information (if
applicable) and certain other personal information. A credit reference agency
search is made against each Borrower at their current address and, if
necessary, former addresses, in all cases which will give details of any
public information which includes county court judgements and details of any
bankruptcy.

Employment details

The Seller operates the following policy in respect of the verification of
Borrower income details. Under this policy, Borrowers are categorised as
either "employed" or "self-employed" by the Seller.

Proof of income for employed prospective Borrowers may be established by:

(a)   two current consecutive monthly payslips or, if paid weekly, the last
      three consecutive payslips; or

(b)   Form P60, or employer's reference, with evidence of continued
      employment.

Proof of income for self-employed prospective Borrowers may be established by:

(a)   a letter from the Borrower's accountant in acceptable form; or

(b)   acceptable confirmation of self-employment which might include any of a
      tax return, accountant's letter or a trade invoice, together with a
      certificate from the Borrower as to income.

For certain Mortgage Loan products, particularly those that may involve larger
maximum loan amounts or higher loan to value ("LTV") ratios, the Seller
generally will require an acceptable accountant's letter or audited accounts.

Income Capacity

The following maximum income multiples are applied in determining the amount
of the Mortgage Loan:

(a)   Single applicant- 3.50 times gross income for all Mortgage Loans (other
      than Together Mortgage Loans); 3.80 times gross income for Together
      Mortgage Loans.

---------
/1/  These Lending Criteria apply to Mortgage Loans other than Personal
     Secured Loans.

                                      77
<PAGE>

(b)   Joint applicants - a sum equal to: (1) the higher of 2.75 times the
      joint gross income of the applicants (3.00 times joint gross income for
      Together Mortgage Loans), or 3.50 times the highest earning applicant's
      gross income (3.80 times the highest joint gross income for Together
      Mortgage Loans) plus (2) the gross income of the other applicant.

Valuation

The Seller requires that a valuation of the Mortgaged Property be obtained
either from its in-house valuation department or from an independent firm of
professional valuers selected from a panel of approved valuers. Details of
professional indemnity insurance held by panel valuers are kept by the Seller.
All valuations of Properties are reviewed by the person underwriting the
Mortgage Loan and/or the valuation team.

Property Types

The Seller applies the criteria set out below in determining the eligibility
of Properties to serve as security for Mortgage Loans. Under these criteria,
eligible property types include freehold, heritable and leasehold houses,
leasehold and heritable flats and mixed commercial and residential use
properties where there is a separate entrance for the residential part of the
Mortgaged Property. In the case of a Mortgage Loan secured by a leasehold
property, the Seller requires that the unexpired term of the lease be at least
30 years from the end of the agreed mortgage term, with a minimum remaining
term of 50 years from the beginning of the mortgage term.

Certain property types falling outside the criteria may be considered on a
case by case basis. However, certain property types will not be considered for
the purposes of providing security for a Mortgage Loan. The types of property
falling within this category comprise freehold flats (in England and Wales),
shared ownership or shared equity schemes and properties of non-standard
construction of a type considered to be defective.

Loan Amount

Generally, the maximum loan amount is (GBP)500,000, but this varies according
to the application in question. In exceptional cases, this limit may be
exceeded.

Term

Each Mortgage Loan must have an initial term of between 7 and 30 years (in the
case of a Together Mortgage Loan, a Together Connections Mortgage Loan and a
Connections Mortgage Loan) or between 7 and 35 years in the case of all other
Mortgage Loans.

Age of applicant

All Borrowers in respect of non-Together Mortgage Loans must be aged 18 or
over. All Borrowers in respect of Together Mortgage Loans must be aged 21 or
over. There are no maximum age limits.

                                      78
<PAGE>

Discretion to lend outside Lending Criteria

On a case-by-case basis, and within approved limits as detailed in the
Seller's lending policy, the Seller may have determined that, based upon
compensating factors, a prospective Borrower who did not strictly qualify
under its lending criteria warranted an underwriting exception. Compensating
factors may include, but are not limited to, a low LTV ratio, stable
employment and time in residence at the applicant's current residence.

Maximum Loan To Value

For Mortgage Loans up to (GBP)250,000, the maximum LTV ratio permitted is 95
per cent. of the current market value of the Mortgaged Property determined by
the valuation. For Mortgage Loans up to (GBP)400,000 the maximum LTV ratio
permitted is 90 per cent. of the current market value of the Mortgaged
Property determined by relevant valuation. For Mortgage Loans of over
(GBP)400,000 the maximum LTV ratio permitted is 85 per cent. of the current
market value of the Mortgaged Property determined by valuation.

                                      79
<PAGE>

                                  SCHEDULE 13

<PAGE>

<TABLE>
<CAPTION>

                                  STANDARD DOCUMENTATION

Doc No.         Document                                            Period in Use

<S>             <C>                                                 <C>
1.              (a) NRBS Mortgage Offer - General Conditions        01/07/95 to 31/12/95

                (b)NRBS Mortgage Offer - General Conditions         01/01/96 to 30/11/96

                (c)NRBS Mortgage Offer - General Conditions         01/12/96 to 30/09/97

2.              NRBS Mortgage Deed                                  01/07/95 to 30/09/97

3.              NRBS Mortgage Conditions Booklet 1995               01/07/95 to 30/09/97

4.              (a)NR plc Mortgage Offer - General Conditions       01/10/97 to 31/12/97

                (b)NR plc Mortgage Offer - General Conditions       01/12/97 to 31/12/97

                (c)NR plc Mortgage Offer - General Conditions       01/01/98 to 31/05/98

                (d)NR plc Mortgage Offer - General Conditions       01/06/98 to 31/12/98

                (e)NR plc Mortgage Offer - General Conditions       01/01/99 to present

5.              NRBS/NR plc Transitional Mortgage Deed              01/07/97 to 01/10/97

6.              NR plc Mortgage Deed                                01/10/97 to present

7.              NR plc Mortgage Conditions 1997                     01/10/97 to present

8.              NR plc "Together" Mortgage Deed                     01/04/99 to present

9.              Discounted Mortgage Brochures

10.             Discounted Mortgage Special Conditions

11.             Cashback Mortgage Brochures

12.             Cashback Mortgage Special Conditions

13.             Fixed Rate Mortgage Brochures

14.             Fixed Rate Mortgage Special Conditions

15.             Together Mortgage Brochures

16.             Together Mortgage Special Conditions

</TABLE>

                                            80
<PAGE>

<TABLE>
<CAPTION>

                                  APPENDIX A
                      THE INITIAL MORTGAGE LOAN PORTFOLIO

Account No         Property Address      Name of                Date of          Current
                                         Borrower(s)            Mortgage         Balance
                                                                Completion
<S>                <C>                   <C>                    <C>              <C>

</TABLE>

                                            81Exhibit 4.4

                            Dated 22 September 2004

                          GRANITE MORTGAGES 04-3 PLC

                               as Current Issuer

                             THE BANK OF NEW YORK

                                as Note Trustee

                                    - and -

                                    OTHERS

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

                             ISSUER DEED OF CHARGE

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

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

<PAGE>

                                   CONTENTS

1.   Interpretation...........................................................3

2.   Covenant to Pay and to Perform...........................................3

3.   Current Issuer Security..................................................4

4.   Release of Current Issuer Charged Property...............................9

5.   Declaration of Trust....................................................10

6.   Restrictions on Exercise of Certain Rights..............................10

7.   Enforcement.............................................................14

8.   Upon Enforcement........................................................16

9.   Receiver................................................................19

10.  Further Assurance and Power of Attorney.................................23

11.  Crystallisation.........................................................24

12.  Provisions relating to the Security.....................................25

13.  Protection of Third Parties.............................................27

14.  Set-Off.................................................................27

15.  Representations and Covenants...........................................27

16.  Note Trustee Provisions.................................................32

17.  Modification and Waiver.................................................33

18.  Miscellaneous Provisions................................................35

19.  Rights cumulative.......................................................35

20.  Assignment..............................................................36

21.  Non Petition Covenant; Corporate Obligations............................36

22.  Notices.................................................................36

23.  Third Party Rights......................................................38

24.  Execution in Counterparts; Severability.................................38

25.  Governing Law and Jurisdiction; Appropriate Forum.......................38

EXECUTION PAGE...............................................................40

                                      i
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SCHEDULE 1...................................................................43

SCHEDULE 2...................................................................46

SCHEDULE 3...................................................................52

                                      ii
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THIS DEED OF CHARGE is made on 22 September 2004

BETWEEN:

(1)  GRANITE MORTGAGES 04-3 PLC (registered number 5168395) a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as Current
     Issuer;

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

(3)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Principal Paying Agent;

(4)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Agent Bank;

(5)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Registrar;

(6)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Transfer Agent;

(7)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Account Bank;

(8)  CITIBANK, N.A., acting through its office at 111 Wall Street, 14th Floor,
     Zone 3, New York, N.Y. 10043, U.S.A., in its capacity as US Paying Agent;

(9)  NORTHERN ROCK PLC (registered number 03273685) 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 Current Issuer Cash Manager;

(10) NORTHERN ROCK PLC (registered number 03273685) 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 Basis Rate Swap Provider;

(11) BARCLAYS BANK PLC acting through its office at 5, The North Colonnade,
     Canary Wharf, London E14 4BB in its capacity as Dollar Currency Swap
     Provider in respect of the Series 1 Notes;

(12) SWISS RE FINANCIAL PRODUCTS CORPORATION acting through the office at 55
     East 52nd Street, 39th Floor, New York, New York 10055 in its capacity as
     Dollar Currency Swap Provider in respect of the Series 2 Class A1 Notes;

(13) CITIBANK, N.A., LONDON BRANCH acting through its office at Citigroup
     Centre, Canada Square, Canary Wharf, London E14 4BB, in its capacity as
     Euro Currency Swap Provider;

                                      1
<PAGE>

(14) UBS LIMITED acting through its office at 1 Finsbury Avenue, London EC2M
     2PP, in its capacity as Interest Rate Swap Provider; and

(15) LAW DEBENTURE CORPORATE SERVICES LIMITED (registered number 3388362) a
     private limited company incorporated under the laws of England and Wales
     whose registered office is at Fifth Floor, 100 Wood Street, London EC2V
     7EX as the Corporate Services Provider.

WHEREAS:

(A)  This Deed secures and will secure, inter alia, the Current Issuer Secured
     Obligations.

(B)  The Current Issuer will on the date of this Current Issuer Deed of Charge
     issue the Current Issuer Notes pursuant to the Current Issuer Trust Deed.

(C)  The Paying Agents, the Agent Bank, the Registrar and the Transfer Agent
     have agreed to provide certain agency services on behalf of the Current
     Issuer for the benefit of the Noteholders on the terms set out in the
     Current Issuer Paying Agent and Agent Bank Agreement.

(D)  The Current Issuer Cash Manager has agreed to act as cash manager and to
     provide certain administration and cash management services to the
     Current Issuer on the terms set out in the Current Issuer Cash Management
     Agreement.

(E)  The Account Bank has agreed to provide certain bank account services to
     the Current Issuer on the terms set out in the Current Issuer Bank
     Account Agreement.

(F)  The Dollar Currency Swap Provider has agreed to enter into
     dollar/sterling currency swaps with the Current Issuer in relation to
     Dollar Notes on the terms set out in the Current Issuer Dollar Currency
     Swap Agreements.

(G)  The Euro Currency Swap Provider has agreed to enter into euro/sterling
     currency swaps with the Current Issuer in relation to the Euro Notes on
     the terms set out in the Current Issuer Euro Currency Swap Agreements.

(H)  The Basis Rate Swap Provider has agreed to enter into an interest rate
     swap with the Current Issuer on the terms set out in the Current Issuer
     Basis Rate Swap Agreement.

(I)  The Interest Rate Swap Provider has agreed to enter into an Interest Rate
     Swap with the Current Issuer on the terms set out in the Current Issuer
     Interest Rate Swap Agreement.

(J)  The Corporate Services Provider has agreed to act as corporate services
     provider to, inter alios, the Current Issuer on the terms set out in the
     Current Issuer Corporate Services Agreement.

(K)  This Current Issuer Deed of Charge is supplemental to the Current Issuer
     Trust Deed of even date herewith and made between the Current Issuer and
     the Note Trustee relating to the issuance of the Current Issuer Notes.

NOW THIS DEED WITNESSES AS FOLLOWS:

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<PAGE>

1.   Interpretation

1.1  Definitions: The provisions of:

     (a)  the Master Definitions Schedule as amended and restated by (and
          appearing as Appendix 1 to) the Master Definitions Schedule Ninth
          Amendment Deed made on 22 September between, among others, the
          Seller, Funding and the Mortgages Trustee, and

     (b)  the Issuer Master Definitions Schedule signed for the purposes of
          identification by Sidley Austin Brown & Wood and Allen & Overy LLP
          on 22 September 2004,

     (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.

     The Issuer Master Definitions Schedule specified above shall prevail to
     the extent that it conflicts with the Master Definitions Schedule.

1.2  Construction: In this Current Issuer Deed of Charge, except where the
     context otherwise requires:

     (a)  the terms of the Current Issuer Trust Deed and of any agreement in
          existence at the date hereof between the parties hereto are
          incorporated in this Current Issuer Deed of Charge but (unless
          otherwise expressly provided for herein) only to the extent required
          to ensure that any proposed disposition of the Current Issuer
          Charged Property contained in this Current Issuer Deed of Charge is
          a valid disposition in accordance with Section 2(1) of the Law of
          Property (Miscellaneous Provisions) Act 1989;

     (b)  a reference in this Current Issuer Deed of Charge to any property,
          assets, undertakings or rights includes, unless the context
          otherwise requires, present and future property, assets,
          undertakings or rights; and

     (c)  "this Current Issuer Deed of Charge" means this Current Issuer Deed
          of Charge and all the Schedules hereto (as from time to time
          modified and/or supplemented in accordance with the provisions set
          out herein) and each other document or deed entered into pursuant
          hereto (as from time to time modified/and or supplemented as
          aforesaid) and expressed to be supplemental hereto.

2.   Covenant to Pay and to Perform

     Subject to the provisions of the Current Issuer Transaction Documents
     (including, in the case of the Current Issuer Notes, to Clause 2
     (Covenant to Repay etc.) of the Current Issuer Trust Deed), the Current
     Issuer covenants with and undertakes to the Note Trustee for itself and
     as trustee for the Current Issuer Secured Creditors that it will:

     (a)  duly and punctually pay and discharge all monies and liabilities
          whatsoever which now are or at any time hereafter may (whether
          before or after demand)

                                      3
<PAGE>

          become due and payable by the Current Issuer to the Note Trustee
          (whether for its own account or as trustee for the Current Issuer
          Secured Creditors) or to any of the other Current Issuer Secured
          Creditors, whether actually or contingently, under this Current
          Issuer Deed of Charge and/or any of the other Current Issuer
          Transaction Documents (including without limitation the Current
          Issuer Notes); and

     (b)  observe, perform and satisfy all its other obligations and
          liabilities under this Current Issuer Deed of Charge and/or any of
          the other Current Issuer Transaction Documents (including without
          limitation the Current Issuer Notes),

     PROVIDED THAT every payment in respect of any Current Issuer Transaction
     Document made to the relevant Current Issuer Secured Creditor in the
     manner provided in such Current Issuer Transaction Document shall operate
     in satisfaction pro tanto of the relative covenant and undertaking by the
     Current Issuer in this Clause 2 (Covenant to Pay and Perform).

3.   Current Issuer Security

3.1  Funding Charged Property:

     (a)  The Current Issuer, by way of first fixed security for the payment
          or discharge of the Current Issuer Secured Obligations, subject to
          Clause 4 (Release of Current Issuer Charged Property), hereby
          assigns to the Note Trustee, save to the extent that any of the
          Current Issuer's rights and claims in respect thereof derive from
          property which is situated in Jersey at any relevant time, all of
          its right, title, benefit and interest and all claims, present and
          future, in and to, the security and all property, assets and rights
          and claims held on trust by the Security Trustee for the payment or
          discharge of the relevant Funding Secured Obligations pursuant to
          the Funding Deed of Charge including all rights to receive payment
          of any amount which may become payable to the Current Issuer
          thereunder and all rights to serve notices and/or make demands
          thereunder and/or to take such steps as are required to cause
          payments to become due and payable thereunder and all rights of
          action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely;
          and

     (b)  To the intent that the Note Trustee shall have a security interest
          in accordance with the Security Interests (Jersey) Law 1983 (the
          "Jersey Security Law") (and as secured party for the purposes of
          such law) for payment or discharge of the Current Issuer Secured
          Obligations, subject to Clause 4 (Release of Current Issuer Charged
          Property), the Current Issuer (as debtor for the purposes of the
          Jersey Security Law) hereby assigns to the extent that the same may
          be situate in Jersey at any relevant time to the Note Trustee all of
          its right, title, benefit and interest and all claims, present and
          future, in and to, the security and all property, assets and rights
          and claims held on trust by the Security Trustee for the payment or
          discharge of the relevant Funding Secured Obligations pursuant to
          the Funding Deed of Charge including all rights to receive payment
          of any amount which may become payable to the Current Issuer

                                      4
<PAGE>

          thereunder and all rights to serve notices and/or make demands
          thereunder and/or to take such steps as are required to cause
          payments to become due and payable thereunder and all rights of
          action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely.

3.2  Contractual rights:

     (a)  The Current Issuer, by way of first fixed security for the payment
          or discharge of the Current Issuer Secured Obligations, subject to
          Clause 4 (Release of Current Issuer Charged Property), hereby
          assigns to the Note Trustee, save to the extent that any of the
          Current Issuer's rights and claims in respect thereof derive from
          property which is situated in Jersey at any relevant time, all of
          its right, title, benefit and interest, present and future, in, to
          and under:

          (i)  the Current Issuer Intercompany Loan Agreement;

          (ii) (to the extent not assigned pursuant to Clause 3.1(a)) the
               Funding Deed of Charge (including, for the avoidance of doubt,
               the Current Issuer Deed of Accession);

         (iii) the Current Issuer Swap Agreements;

          (iv) the Current Issuer Bank Account Agreement;

          (v)  the Current Issuer Cash Management Agreement;

          (vi) the Current Issuer Paying Agent and Agent Bank Agreement;

         (vii) the Current Issuer Trust Deed;

        (viii) the Current Issuer Notes;

          (ix) the Current Issuer Underwriting Agreement;

          (x)  the Current Issuer Subscription Agreement;

          (xi) the Current Issuer Post-Enforcement Call Option Agreement;

         (xii) the Current Issuer Corporate Services Agreement;

        (xiii) any Swap Collateral Ancillary Document; and

         (xiv) each other Current Issuer Transaction Document (other than
               this Current Issuer Deed of Charge) entered into or to be
               entered into by the Current Issuer pursuant to or in connection
               with any of the documents set out in paragraphs (i) through
               (xii) above (including any agreement entered into by the
               Current Issuer as a replacement of any of the above agreements
               upon the termination of such agreement),

                                      5
<PAGE>

          including, without limitation, all rights to receive payment of any
          amounts which may become payable to the Current Issuer thereunder
          and all payments received by the Current Issuer thereunder
          including, without limitation, all rights to serve notices and/or
          make demands thereunder and/or to take such steps as are required to
          cause payments to become due and payable thereunder and all rights
          of action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely.

     (b)  To the intent that the Note Trustee shall have a security interest
          in accordance with the Jersey Security Law (and as secured party for
          the purposes of such law) for payment or discharge of the Current
          Issuer Secured Obligations, subject to Clause 4 (Release of Current
          Issuer Charged Property), the Current Issuer (as debtor for the
          purposes of the Jersey Security Law) hereby assigns to the extent
          that the same may be situate in Jersey at any relevant time to the
          Note Trustee all of its right, title, benefit and interest, present
          and future, in, to and under:

          (i)  the Current Issuer Intercompany Loan Agreement;

          (ii) (to the extent not assigned pursuant to Clause 3.1(a)) the
               Funding Deed of Charge (including, for the avoidance of doubt,
               the Current Issuer Deed of Accession);

         (iii) the Current Issuer Swap Agreements;

          (iv) the Current Issuer Bank Account Agreement;

          (v)  the Current Issuer Cash Management Agreement;

          (vi) the Current Issuer Paying Agent and Agent Bank Agreement;

         (vii) the Current Issuer Trust Deed;

        (viii) the Current Issuer Notes;

          (ix) the Current Issuer Underwriting Agreement;

          (x)  the Current Issuer Subscription Agreement;

          (xi) the Current Issuer Post-Enforcement Call Option Agreement;

         (xii) the Current Issuer Corporate Services Agreement;

        (xiii) any Swap Collateral Ancillary Document; and

         (xiv) each other Current Issuer Transaction Document (other than
               this Current Issuer Deed of Charge) entered into or to be
               entered into by the Current Issuer pursuant to or in connection
               with any of the documents set out in paragraphs (i) through
               (xii) above (including any agreement entered into by the
               Current Issuer as a replacement of any of the above agreements
               upon the termination of such agreement),

                                      6
<PAGE>

          including, without limitation, all rights to receive payment of any
          amounts which may become payable to the Current Issuer thereunder
          and all payments received by the Current Issuer thereunder
          including, without limitation, all rights to serve notices and/or
          make demands thereunder and/or to take such steps as are required to
          cause payments to become due and payable thereunder and all rights
          of action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely.

3.3  Accounts: The Current Issuer, by way of first fixed security for the
     payment or discharge of the Current Issuer Secured Obligations, subject
     to Clause 4 (Release of Current Issuer Charged Property), hereby assigns
     in favour of the Note Trustee all of its rights, title, benefit and
     interest, present and future, in and to:

     (a)  the Current Issuer Transaction Accounts;

     (b)  any Swap Collateral Accounts; and

     (c)  each other account (if any) in which the Current Issuer may at any
          time have or acquire any right, title, benefit or interest,

     and all monies or securities now or at any time hereafter standing to the
     credit thereof and the debts represented by them together with all rights
     and claims relating or attached thereto including, without limitation,
     the right to interest or other income or distributions and the proceeds
     of any of the foregoing, TO HOLD the same unto the Note Trustee
     absolutely.

3.4  Authorised Investments and Swap Collateral: The Current Issuer, by way of
     first fixed charge for the payment or discharge of the Current Issuer
     Secured Obligations, subject to Clause 4 (Release of Current Issuer
     Charged Property), hereby charges in favour of the Note Trustee all of
     its right, title, benefit and interest, present and future in, to and
     under:

     (a)  any Authorised Investment purchased using monies standing to the
          credit of any Current Issuer Bank Account; and

     (b)  any Swap Collateral in the form of securities,

     for the time being owned by it and all rights in respect of or ancillary
     to such Authorised Investments and such Swap Collateral, including the
     right to income and distributions and the proceeds of any of the
     foregoing, TO HOLD the same unto the Note Trustee absolutely.

3.5  Floating Charge: The Current Issuer, by way of first floating charge for
     the payment or discharge of the Current Issuer Secured Obligations,
     subject to Clause 4 (Release of Current Issuer Charged Property), hereby
     charges in favour of the Note Trustee the whole of its undertaking and
     all its property, assets and rights, whatsoever and wheresoever, both
     present and future, including without limitation its uncalled capital,
     other than any property or assets for the time being the subject of a
     fixed charge or effectively assigned pursuant to any of the foregoing
     provisions of this Clause 3 (Current Issuer Security).

                                      7
<PAGE>

3.6  Title Guarantee: Each of the dispositions of, assignments of and charges
     over property effected in or pursuant to this Clause 3 (Current Issuer
     Security) is made with full title guarantee.

3.7  Further Acquired Items: For the avoidance of doubt, it is hereby
     confirmed that the Security Interests (including the Jersey Security
     Interests) created under or pursuant to Clauses 3.1 (Funding Charged
     Property) to Clause 3.4 (Authorised Investments and Swap Collateral)
     (inclusive) are intended to be specific and fixed assignments, or
     specific and fixed charges over (as the case may be) the property and
     assets to which they relate, both present and future, including property
     and assets which are acquired after the date hereof.

3.8  No Transfer of Obligations: Notwithstanding anything else in this Current
     Issuer Deed of Charge, it is hereby agreed that dispositions of property
     effected in or pursuant to this Clause 3 (Current Issuer Security) do not
     transfer obligations, and nothing herein shall be construed as a transfer
     of obligations to, the Note Trustee.

3.9  Notice and Acknowledgement:

     (a)  The execution of this Current Issuer Deed of Charge by any Current
          Issuer Secured Creditor shall constitute express notice to such
          Current Issuer Secured Creditor of the assignments, charges and
          Security Interests (including the Jersey Security Interests) made by
          the Current Issuer pursuant to this Clause 3 (Current Issuer
          Security).

     (b)  By its execution of this Current Issuer Deed of Charge each Current
          Issuer Secured Creditor acknowledges and consents to the
          assignments, charges and Security Interests (including the Jersey
          Security Interests) made or granted by the Current Issuer under this
          Clause 3 (Current Issuer Security) and also acknowledges that as at
          the date hereof it has not received from any other person notice of
          any assignment or charge of any property the subject of such
          Security Interests.

     (c)  Notwithstanding the assignments, charges and Security Interests
          granted under or pursuant to this Clause 3 (Current Issuer Security)
          and subject as provided otherwise in this Current Issuer Deed of
          Charge, each of the parties hereto acknowledges that:

          (i)  each Current Issuer Secured Creditor and each other party to
               any Current Issuer Transaction Document may continue to make
               all payments becoming due to the Current Issuer under any
               Current Issuer Transaction Document in the manner envisaged by
               such Current Issuer Transaction Document until the receipt of
               written notice from the Note Trustee or any Receiver requiring
               payments to be made otherwise; and

          (ii) until the Current Issuer Security becomes enforceable in
               accordance with Clause 7.2 (Enforceable), the Current Issuer
               shall be entitled to exercise its rights, powers and
               discretions and perform its obligations in relation to the
               Current Issuer Charged Property and under the Current Issuer
               Transaction Documents in accordance with the provisions of the
               Current Issuer Transaction Documents.

                                      8
<PAGE>

3.10 Note Trustee's Discretion in relation to Current Issuer Charged Property:

     Without prejudice to any other rights of the Note Trustee after the
     security created under this Current Issuer Deed of Charge has become
     enforceable and subject to the terms of the Current Issuer Transaction
     Documents, the Note Trustee may from time to time at any time after any
     part or parts of the Current Issuer Security becomes enforceable:

     (a)  enter into, make, execute, sign, deliver and do all such contracts,
          agreements, deeds, receipts, payments, assignments, transfers,
          conveyances, assurances and things and bring, prosecute, enforce,
          defend and abandon all such actions, suits and proceedings in
          relation to the Current Issuer Charged Property as it may think
          expedient;

     (b)  exercise or refrain from exercising, in such manner as in its
          absolute discretion the Note Trustee shall think fit, all or any of
          the rights, powers, authorities, discretions or remedies of the
          Current Issuer under or in relation to the Current Issuer Charged
          Property or incidental to the ownership thereof and, in particular
          but without limiting the generality of the foregoing, exercise all
          rights to vote or to give any consent or notification or make any
          declaration in relation to such Current Issuer Charged Property. For
          the avoidance of doubt, the Note Trustee shall not be required to
          have regard to the interests of the Current Issuer in the exercise
          or non-exercise of any such rights, powers, authorities, discretions
          and remedies or to comply with any direction given by the Current
          Issuer in relation thereto; and

     (c)  demand, sue for and take any advice or institute any proceedings to
          recover or obtain payment of any amounts which may then be due and
          payable to the Current Issuer but which remains unpaid under or in
          respect of the Current Issuer Charged Property or any part thereof
          either in its own name or in the name of the Current Issuer.

4.   Release of Current Issuer Charged Property

4.1  Release, Reassignment or Discharge: Upon the irrevocable and
     unconditional payment in full or discharge (or any combination of the
     foregoing) of all the Current Issuer Secured Obligations and upon the
     Note Trustee being satisfied that the Current Issuer is under no further
     actual or contingent obligation under this Current Issuer Deed of Charge
     or any other Current Issuer Transaction Document, the Note Trustee shall,
     at the request and cost of the Current Issuer, release, reassign and/or
     discharge from the Security Interests (including the Jersey Security
     Interests) all of the Current Issuer Charged Property to, or to the order
     of, the Current Issuer; provided that where any such release,
     re-assignment or discharge is made in whole or in part on the faith of
     any payment, security or other disposition which is avoided or which must
     be repaid on bankruptcy, liquidation or otherwise, the security
     constituted by this Current Issuer Deed of Charge and the liability of
     the Current Issuer hereunder shall continue as if there had been no such
     release, re-assignment or discharge.

4.2  Disposal of Authorised Investments and Swap Collateral: On the making at
     any time by the Current Issuer Cash Manager on behalf of the Current
     Issuer of a disposal of any Authorised Investment or Swap Collateral in
     the form of securities charged

                                      9
<PAGE>

     pursuant to Clause 3.4 (Authorised Investments and Swap Collateral), the
     Note Trustee shall, if so requested by and at the sole cost and expense
     of the Current Issuer, but without the Note Trustee being responsible for
     any loss, costs, claims or liabilities whatsoever occasioned by so acting
     upon such request, release, reassign or discharge from the Security
     Interests constituted by or pursuant to this Current Issuer Deed of
     Charge the relevant Authorised Investments or Swap Collateral, provided
     that in the case of a disposal of an Authorised Investment, the proceeds
     of such disposal are paid by the Current Issuer into the Current Issuer
     Bank Accounts from which the monies to make such Authorised Investment
     were originally drawn and, that in the case of Swap Collateral, the
     proceeds of such disposal are paid by the Current Issuer into the
     relevant Swap Collateral Cash Account or Current Issuer Bank Account (as
     appropriate in accordance with the Cash Management Agreement) subject to
     and in accordance with the provisions of this Current Issuer Deed of
     Charge and the Current Issuer Transaction Documents.

4.3  Withdrawals from Current Issuer Bank Accounts and Swap Collateral
     Accounts: Subject to and in accordance with this Current Issuer Deed of
     Charge and the other Current Issuer Transaction Documents, the Current
     Issuer Cash Manager, on behalf of the Current Issuer and the Note
     Trustee, is permitted pursuant to Clause 6 (Restrictions on Exercise of
     Certain Rights) from time to time to withdraw amounts from the Current
     Issuer Bank Accounts in order to apply such amounts in accordance with
     the relevant Current Issuer Priority of Payments and from time to time to
     withdraw amounts or securities from the Swap Collateral Accounts in order
     to apply such amounts or securities in accordance with the Current Issuer
     Cash Management Agreement. Any amount or securities so withdrawn shall be
     released from the Security Interests (including the Jersey Security
     Interests) created under this Current Issuer Deed of Charge provided that
     any amount withdrawn from the Current Issuer Bank Accounts is applied in
     accordance with and subject to the relevant Current Issuer Priority of
     Payments.

5.   Declaration of Trust

     Each of the Current Issuer Secured Creditors declares the Note Trustee as
     trustee of, and the Note Trustee hereby declares that it holds on trust
     for the Current Issuer Secured Creditors, upon and subject to the terms
     and conditions of this Current Issuer Deed of Charge, all of the
     covenants, undertakings and representations made to the Note Trustee
     under this Current Issuer Deed of Charge and any other Current Issuer
     Transaction Document and all of the charges, assignments, security and
     Security Interests made or given to the Note Trustee or to be made or
     given to it for the purpose of securing the Current Issuer Secured
     Obligations under or pursuant to this Current Issuer Deed of Charge or
     any other Current Issuer Transaction Document.

6.   Restrictions on Exercise of Certain Rights

6.1  Payments to Current Issuer Bank Accounts and Swap Collateral Accounts: At
     all times prior to the release, re-assignment and/or discharge of the
     Current Issuer Security pursuant to Clause 4 (Release of the Current
     Issuer Charged Property), the Current Issuer shall save as otherwise
     provided in the Current Issuer Transaction Documents or unless the Note
     Trustee otherwise agrees in writing (and then only on such terms and in
     such manner as the Note Trustee may require) procure that:

                                      10
<PAGE>

     (a)  the Current Issuer Bank Accounts shall from time to time be credited
          with all amounts (excluding Swap Collateral Excluded Amounts)
          received by the Current Issuer under or in respect of the Current
          Issuer Transaction Documents, including without limitation the
          following payments:

          (i)  amounts received by the Current Issuer from or on behalf of
               Funding pursuant to the provisions of the Current Issuer
               Intercompany Loan Agreement;

          (ii) interest received on the Current Issuer Bank Accounts;

         (iii) amounts received by the Current Issuer from the Basis Rate
               Swap Provider under the Current Issuer Basis Rate Swap
               Agreement and any Swap Collateral Available Revenue Amounts and
               Swap Collateral Available Principal Amounts;

          (iv) amounts received by the Current Issuer from the Dollar Currency
               Swap Provider under the Current Issuer Dollar Currency Swap
               Agreements and any Swap Collateral Available Revenue Amounts
               and Swap Collateral Available Principal Amounts;

          (v)  amounts received by the Current Issuer from the Euro Currency
               Swap Provider under the Current Issuer Euro Currency Swap
               Agreements and any Swap Collateral Available Revenue Amounts
               and Swap Collateral Available Principal Amounts;

          (vi) amounts received by the Current Issuer from the Interest Rate
               Swap Provider under the Current Issuer Interest Rate Swap
               Agreement and any Swap Collateral Available Revenue Amounts and
               Swap Collateral Available Principal Amounts;

         (vii) income received by the Current Issuer in respect of the
               proceeds of any Authorised Investments;

        (viii) amounts received by the Current Issuer from the Security
               Trustee or a Receiver following the service of an Intercompany
               Loan Enforcement Notice;

          (ix) such other payments received by the Current Issuer as are, or
               ought in accordance with this Current Issuer Deed of Charge to
               be, comprised in the Current Issuer Charged Property; and

     (b)  any Swap Collateral Accounts shall from time to time be credited
          with any Swap Collateral Excluded Amounts received by the Current
          Issuer pursuant to the relevant Current Issuer Swap Agreement.

6.2  No withdrawal from Current Issuer Bank Accounts and Swap Collateral
     Accounts: At all times during the subsistence of the Current Issuer
     Security, the Current Issuer shall not be entitled to withdraw or
     transfer from any Current Issuer Bank Account or Swap Collateral Account
     any monies or securities standing to the credit thereof or direct any
     payment to be made therefrom to any person save to the extent expressly
     permitted under this Current Issuer Deed of Charge without the Note
     Trustee's prior

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<PAGE>

     written consent.

6.3  Permitted Withdrawals from Current Issuer Bank Accounts and Swap
     Collateral Accounts; Authorised Investments:

     (a)  The Current Issuer covenants with the Note Trustee that the amounts
          standing to the credit of the Current Issuer Bank Accounts and any
          Swap Collateral standing to the credit of a Swap Collateral Account
          may only be withdrawn in accordance with this Clause 6.3 or
          otherwise with the Note Trustee's prior written consent.

     (b)  On any day during an Interest Period prior to the security becoming
          enforceable pursuant to Clause 7.2 (Enforceable), the Current Issuer
          and the Note Trustee hereby authorise the Current Issuer Cash
          Manager to withdraw such monies from the Current Issuer Transaction
          Accounts as are to be applied on such date to meet any amounts then
          due and payable by the Current Issuer to third parties in accordance
          with item (C) of the Current Issuer Pre-Enforcement Revenue Priority
          of Payments provided that such monies are applied in making such
          payments on behalf of the Current Issuer. For the purpose of this
          paragraph (b), the remaining provisions of this Clause 6.3, Clause
          6.4 (Current Issuer Pre-Enforcement Revenue Priority of Payments)
          and Clause 6.5 (Current Issuer Pre-Enforcement Principal Priority of
          Payments), the Current Issuer Cash Manager shall be entitled to
          assume that the Current Issuer Security is not enforceable pursuant
          to Clause 7.2 (Enforceable) unless it has received notice from the
          Current Issuer or the Note Trustee or is otherwise aware that the
          Current Issuer Security has become so enforceable and shall not be
          liable to the Note Trustee, the Current Issuer or any other Current
          Issuer Secured Creditor for making payments based on this
          assumption.

     (c)  The Note Trustee hereby authorises the Current Issuer Cash Manager,
          prior to the security becoming enforceable pursuant to Clause 7.2
          (Enforceable), to make withdrawals from:

          (i)  the relevant Current Issuer Bank Account for the purposes of
               acquiring Authorised Investments provided that all amounts
               received in respect of the Authorised Investments (including
               earnings thereon) shall be deposited into the relevant Current
               Issuer Bank Account from which they were originally drawn; and

          (ii) the relevant Swap Collateral Account for the purpose of (1)
               transferring or paying Swap Collateral to a Current Issuer Swap
               Provider pursuant to the terms of the relevant Current Issuer
               Swap Agreement; or (2) transferring Swap Collateral Available
               Revenue Amounts and/or Swap Collateral Available Principal
               Amounts to the relevant Current Issuer Transaction Account.

6.4  Current Issuer Pre-Enforcement Revenue Priority of Payments: On each
     Payment Date, prior to the Current Issuer Security becoming enforceable
     pursuant to Clause 7.2 (Enforceable), the Note Trustee hereby authorises
     the Current Issuer or the Current Issuer Cash Manager in its place to
     withdraw Current Issuer Available Revenue Receipts standing to the credit
     of the Current Issuer Transaction Accounts

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<PAGE>

     and to apply such monies in accordance with the provisions and the order
     of priority of the Current Issuer Pre-Enforcement Revenue Priority of
     Payments (as the same may be amended or varied from time to time) as set
     out in Schedule 2 (Cash Management and Maintenance of Ledgers) to the
     Current Issuer Cash Management Agreement.

6.5  Current Issuer Pre-Enforcement Principal Priority of Payments: On each
     Payment Date prior to the Current Issuer Security becoming enforceable
     pursuant to Clause 7.2 (Enforceable), the Note Trustee hereby authorises
     the Current Issuer or the Current Issuer Cash Manager in its place to
     withdraw Current Issuer Available Principal Receipts standing to the
     credit of the Current Issuer Transaction Accounts and to apply such
     monies in accordance with the order of priority of the Current Issuer
     Pre-Enforcement Principal Priority of Payments (as the same may be
     amended or varied from time to time) as set out in Schedule 2 (Cash
     Management and Maintenance of Ledgers) to the Current Issuer Cash
     Management Agreement.

6.6  No Enforcement by Current Issuer Secured Creditors: Each of the Current
     Issuer Secured Creditors (other than the Note Trustee acting on behalf of
     the Noteholders and any Receiver) hereby agrees with the Current Issuer
     and the Note Trustee that:

     (a)  only the Note Trustee may enforce the security created in favour of
          the Note Trustee by this Current Issuer Deed of Charge in accordance
          with the provisions hereof;

     (b)  notwithstanding any other provision of this Current Issuer Deed of
          Charge or any other Current Issuer Transaction Document no sum due
          or owing to any Current Issuer Secured Creditor or to the Note
          Trustee (whether for itself or on behalf of the Current Issuer
          Secured Creditors) from or by the Current Issuer under this Current
          Issuer Deed of Charge or any other Current Issuer Transaction
          Document shall be payable by the Current Issuer except to the extent
          that the Current Issuer or (following enforcement of the Current
          Issuer Security) the Note Trustee has sufficient funds available to
          it (and, in the case of the Note Trustee, as a result of the
          realisation of that security) to pay such sum subject to and in
          accordance with the relevant Current Issuer Priority of Payments and
          provided that all liabilities of the Current Issuer required to be
          paid in priority thereto or pari passu therewith pursuant to such
          Current Issuer Priority of Payments have been paid, discharged
          and/or otherwise provided for in full PROVIDED THAT this paragraph
          (b) shall not apply to and shall not limit the obligations of the
          Current Issuer to the Noteholders under the Current Issuer Notes and
          this Current Issuer Deed of Charge; and

     (c)  it shall not take any steps for the purpose of recovering any of the
          Current Issuer Secured Obligations (including, without limitation,
          by exercising any rights of set-off) or enforcing any rights arising
          out of the Current Issuer Transaction Documents against the Current
          Issuer 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, the Current Issuer or for the
          appointment of a receiver, administrator, administrative receiver,
          liquidator or similar officer of the Current Issuer in respect of
          any or all of its revenues and assets,

                                      13
<PAGE>

PROVIDED THAT

          (i)  in the case of any Noteholder, this provision shall be subject
               to Clause 7.2 (Only Note Trustee to Enforce) of the Current
               Issuer Trust Deed; and

          (ii) in the case of any other Current Issuer Secured Creditor and
               subject to there being no Current Issuer Note then outstanding,
               if the Note Trustee having become bound to do so subject to and
               in accordance with the terms of this Current Issuer Deed of
               Charge and the Current Issuer Transaction Documents, fails to
               take any steps or proceedings to enforce the security created
               hereunder within 30 days of becoming so bound and such failure
               is continuing, each such other Current Issuer Secured Creditor
               shall be entitled to take such steps and proceedings to enforce
               its rights arising out of the relevant Current Issuer
               Transaction Document as it shall deem necessary other than the
               presentation of a petition or making an application for the
               winding up, dissolution or reorganisation of, or the
               institution of insolvency proceedings against, the Current
               Issuer or the appointment of an administrator or liquidator of
               the Current Issuer.

6.7  Acknowledgement of Note Trustee: The Note Trustee hereby acknowledges and
     agrees that save with respect to the obligations of the Current Issuer to
     the Noteholders under the Current Issuer Notes and this Current Issuer
     Deed of Charge which are not limited under paragraph (b) of Clause 6.6
     (No Enforcement by Current Issuer Secured Creditors) or under this Clause
     6.7 (Acknowledgement of Note Trustee) and notwithstanding any other
     provision of this Current Issuer Deed of Charge or any other Current
     Issuer Transaction Document, no sum due or owing to any Current Issuer
     Secured Creditor or to the Note Trustee (whether for itself or on behalf
     of the Current Issuer Secured Creditors) from or by the Current Issuer
     under this Current Issuer Deed of Charge or any other Current Issuer
     Transaction Document shall be payable by the Current Issuer except to the
     extent that the Current Issuer has sufficient funds available or
     (following enforcement of the Current Issuer Security) the Note Trustee
     has realised sufficient funds from the Current Issuer Security to pay
     such sum subject to and in accordance with the relevant Current Issuer
     Priority of Payments and provided that all liabilities of the Current
     Issuer required to be paid in priority thereto or pari passu therewith
     pursuant to such Current Issuer Priority of Payments have been paid,
     discharged and/or otherwise provided for in full.

7.   Enforcement

7.1  Notification: The Note Trustee shall, if practicable, give prior
     notification to the Seller, Funding, the Cash Manager and the Current
     Issuer Cash Manager of the Note Trustee's intention to enforce the
     security created by this Current Issuer Deed of Charge. However, the
     failure of the Note Trustee to provide such notification shall not in any
     way prejudice the ability of the Note Trustee to enforce the security
     created by this Current Issuer Deed of Charge.

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<PAGE>

7.2  Enforceable:

     (a)  Without prejudice to the provisions of Clause 9 (Receiver) the
          security created under this Current Issuer Deed of Charge shall
          become immediately enforceable and the power of sale and other
          powers conferred by Section 101 of the 1925 Act, as varied or
          amended by this Current Issuer Deed of Charge, shall be exercisable
          by the Note Trustee:

          (i)  at any time when any Current Issuer Note remains outstanding,
               in accordance with and subject to, Clause 6 (Enforcement) and
               Clause 7 (Proceedings, Action and Indemnification) of the
               Current Issuer Trust Deed which shall, as necessary, be
               incorporated in and apply, mutatis mutandis, to this Current
               Issuer Deed of Charge (and for that purpose references therein
               to "this Trust Deed" or "these presents" shall be construed as
               references to this Current Issuer Deed of Charge); or

          (ii) if there are no Current Issuer Notes outstanding, following a
               default in payment of any other Current Issuer Secured
               Obligations on its due date or within any applicable grace
               period following such due date stated in the relevant Current
               Issuer Transaction Document but subject always to any limited
               recourse provisions stated therein and to Clause 6.6 (No
               Enforcement by Current Issuer Secured Creditors) hereof; or

         (iii) upon the service on Funding by the Security Trustee of an
               Intercompany Loan Enforcement Notice.

     (b)  For the purposes of the Jersey Security Interests, upon the
          occurrence of any of the events specified in Clause 7.2 (a) (i),
          (ii) or (iii) (which shall constitute events of default for the
          purposes of the Jersey Security Interests in accordance with the
          Jersey Security Law) the Note Trustee shall have the right to give
          notice (the "Current Issuer Jersey Enforcement Notice") to the
          Current Issuer in accordance with the Jersey Security Law and the
          power of sale of the Current Issuer Jersey Secured Property shall
          become exercisable without the order of the Jersey court in
          accordance with the Jersey Security Law so that the Jersey Security
          Interests shall be enforceable in accordance with the provisions of
          the Jersey Security Law.

7.3  Power of Sale:

     (a)  Notwithstanding any other provision of this Current Issuer Deed of
          Charge, the Current Issuer Secured Obligations shall be deemed to
          have become due and payable for the purposes of Section 101 of the
          1925 Act and Article 8 of the Jersey Security Law and (to the extent
          applicable) the statutory power of sale and of appointing a receiver
          and other powers which are conferred on mortgagees under the 1925
          Act as varied or extended by this Current Issuer Deed of Charge
          shall be deemed to arise immediately after execution of this Current
          Issuer Deed of Charge.

     (b)  Section 103 of the 1925 Act shall not apply to this Current Issuer
          Deed of Charge and forthwith after the security has become
          enforceable in accordance with Clause 7.2 (Enforceable) the
          statutory power of sale, as extended by this

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<PAGE>

          Current Issuer Deed of Charge, and all other powers shall become
          immediately exercisable without notice to the Current Issuer and the
          provisions of the 1925 Act regulating the power of sale shall, so
          far as they relate to the Current Issuer Charged Property, be varied
          and extended accordingly.

7.4  Law of Property Act 1925: Subject, in the case of the Current Issuer
     Jersey Secured Property, to the provisions of the Jersey Security Law,
     the provisions of the 1925 Act relating to the power of sale and the
     other powers conferred by Section 101(1) and (2) are hereby extended in
     relation to the Current Issuer as if such extensions were contained in
     the 1925 Act such that at any time after the security constituted by this
     Current Issuer Deed of Charge has become enforceable in accordance with
     Clause 7.2 (Enforceable) above, the Note Trustee may in its absolute
     discretion:

     (a)  make demand in the name of the Current Issuer Secured Creditors or
          in its own right for any monies and liabilities in respect of the
          Current Issuer Charged Property;

     (b)  enforce any rights it may have in respect of the whole or any part
          of the Current Issuer Charged Property in such manner and upon such
          terms as the Note Trustee shall think fit;

     (c)  take possession of, get in and collect the Current Issuer Charged
          Property and perfect interests comprised therein;

     (d)  (subject to any restrictions under or in respect of the relevant
          Current Issuer Charged Property) sell, transfer, convey, dispose of,
          vary or otherwise deal with, and also grant any option to purchase,
          and effect exchanges of, the whole or any part of Current Issuer
          Charged Property or any interest therein in such manner, for such
          consideration (if any) and generally upon such terms (including by
          deferred payment or payment by instalments) as it may think fit
          and/or to concur in any of the foregoing (and nothing shall preclude
          any such disposal being made to a Current Issuer Secured Creditor);

     (e)  carry out any transaction, scheme or arrangement which the Note
          Trustee may, in its absolute discretion, consider appropriate with a
          view to or in connection with the sale of the Current Issuer Charged
          Property;

     (f)  do all or any of the things or exercise all or any of the powers,
          authorities and discretions conferred expressly or by implication on
          any Receiver under Clause 9.6 (Powers of the Receiver) or otherwise
          under this Current Issuer Deed of Charge; and/or

     (g)  exercise all or any of the powers conferred on mortgagees by the
          1925 Act as varied or extended by this Current Issuer Deed of Charge
          and any other rights and remedies that may be conferred by statute
          or common law or in equity on mortgagees or receivers.

8.   Upon Enforcement

8.1  Service of a Current Issuer Note Enforcement Notice: Without prejudice to
     the

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<PAGE>

     effectiveness of any service of a Current Issuer Note Enforcement Notice,
     the Note Trustee shall as soon as is practicable notify each of the
     following parties of the enforcement of the Current Issuer Security
     (whether by service of a copy of any Current Issuer Note Enforcement
     Notice or otherwise):

     (a)  the Seller;

     (b)  Funding;

     (c)  the Account Bank, the Cash Manager and the Current Issuer Cash
          Manager;

     (d)  the Paying Agents and the other Agents under the Current Issuer
          Paying Agent and Agent Bank Agreement;

     (e)  the Current Issuer Swap Providers;

     (f)  the Corporate Services Provider; and

     (g)  each other Current Issuer Secured Creditor.

8.2  Crystallisation: From and including the date when the Note Trustee serves
     a Current Issuer Note Enforcement Notice (which has not been withdrawn)
     on the Current Issuer:

     (a)  notwithstanding any provision hereof or of any other Current Issuer
          Transaction Document no amount may be withdrawn from the Current
          Issuer Bank Accounts except with the prior written consent of the
          Note Trustee; and

     (b)  if not already crystallised, any charge created by this Current
          Issuer Deed of Charge which is a floating charge shall crystallise,
          provided that the floating charge created by this Current Issuer
          Deed of Charge shall not be crystallised solely as a result of
          obtaining a moratorium (or anything done with a view to obtaining a
          moratorium) under the Insolvency Act 2000 except with leave of the
          court.

8.3  Current Issuer Post-Enforcement Priority of Payments: At any time after
     the security created by this Current Issuer Deed of Charge has become
     enforceable in accordance with Clause 7.2 (Enforceable) and provided that
     the relevant Current Issuer Note Event of Default has not been waived in
     accordance with the provisions of this Current Issuer Deed of Charge,
     Current Issuer Available Revenue Receipts, Current Issuer Available
     Principal Receipts and all other monies (excluding Swap Collateral
     Excluded Amounts) paid to or received or recovered by or on behalf of the
     Current Issuer or the Note Trustee or any Receiver appointed on its
     behalf, including all proceeds following any sale, realisation or
     enforcement of the security created under this Current Issuer Deed of
     Charge and all amounts (excluding Swap Collateral Excluded Amounts) not
     previously distributed and/or standing to the credit of any Current
     Issuer Bank Account and Swap Collateral Account shall (if not already
     received by the Note Trustee) be paid to and held by the Note Trustee on
     trust to apply the same (save to the extent otherwise required by
     applicable law) in accordance with the order of priority of the Current
     Issuer Post-Enforcement Priority of Payments (as the same may be amended
     or varied from time to time) as set out on the date hereof in Schedule 2
     (Current Issuer Post-Enforcement Priority of Payments)

                                      17
<PAGE>

     to this Current Issuer Deed of Charge.

8.4  Certification of Amounts:

(a)  The Note Trustee shall be entitled to rely on (and to accept as
     conclusive evidence save in the case of manifest error) a certificate
     from each Current Issuer Secured Creditor as to the amounts owed to such
     Current Issuer Secured Creditor under the Current Issuer Transaction
     Documents. The Note Trustee shall not take into account for the purpose
     of the application of moneys in accordance with the Current Issuer
     Post-Enforcement Priority of Payments any amounts of which it has not
     been notified by the intended recipient on or prior to the date in
     question.

(b)  Each Current Issuer Secured Creditor will, at all times, promptly provide
     the Note Trustee and/or any Receiver on request with a certificate
     setting out detailed information as to the amount of the Current Issuer
     Secured Obligations to which such Current Issuer Secured Creditor is
     entitled and such other information as the Note Trustee and/or any
     Receiver may require to enable or facilitate the Note Trustee and/or any
     Receiver to perform its functions hereunder or under any of the Current
     Issuer Transaction Documents, such certificate to be in a form required
     by the Note Trustee and/or any Receiver. In determining the respective
     entitlements of the Current Issuer Secured Creditors hereunder, such
     certificates shall be binding on all of the Current Issuer Secured
     Creditors.

8.5  Retention Account: If the Note Trustee enforces the security created
     under this Current Issuer Deed of Charge at a time when either no amounts
     or not all amounts owing in respect of the Current Issuer Secured
     Obligations have become due and payable or any of the Current Issuer
     Secured Obligations are at such time contingent or future, the Note
     Trustee or a Receiver may, for so long as no such amounts or not all such
     amounts have become due and payable or any of the Current Issuer Secured
     Obligations are at such time contingent or future, pay any monies
     referred to in Clause 8.3 (Current Issuer Post-Enforcement Priority of
     Payments), as the case may be, into, and retain such monies in, an
     interest-bearing account (a "retention account") to be held by it as
     security and applied by it in accordance with Clause 8.3 (Current Issuer
     Post-Enforcement Priority of Payments) as and when any of the amounts
     referred to therein become due and payable.

8.6  Note Trustee Rights upon Enforcement: In addition to any other rights
     expressly provided herein, for the period commencing upon the service of
     a Current Issuer Note Enforcement Notice and terminating upon the
     notification to the Current Issuer Secured Creditors by the Note Trustee
     that all Current Issuer Secured Obligations have been satisfied in full:

     (a)  (provided such Current Issuer Secured Creditor has received a copy
          of, or other notice of the service on the Current Issuer of, any
          such Current Issuer Note Enforcement Notice) each Current Issuer
          Secured Creditor agrees that it will pay to the Note Trustee or the
          Receiver, as the case may be, all monies received or recovered by
          such Current Issuer Secured Creditor (whether by way of set-off or
          otherwise) in order that such amounts may be applied by the Note
          Trustee in accordance with Clause 8.3 (Current Issuer
          Post-Enforcement Priority of Payments);

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<PAGE>

     (b)  save as otherwise expressly provided in this Current Issuer Deed of
          Charge or as required by the Note Trustee, all payments under or
          arising from this Current Issuer Deed of Charge and all amounts
          payable to the Current Issuer by any party to this Current Issuer
          Deed of Charge under any Current Issuer Transaction Document shall
          be paid to the Note Trustee or to its order;

     (c)  save as otherwise expressly provided in this Current Issuer Deed of
          Charge, all rights or remedies provided for by this Current Issuer
          Deed of Charge or available at law or in equity to the Current
          Issuer Secured Creditors are exercisable by the Note Trustee;

     (d)  save as otherwise expressly provided in this Current Issuer Deed of
          Charge, all rights to compel performance of the Current Issuer
          Transaction Documents are exercisable by the Note Trustee; and

     (e)  all payments in respect of the Current Issuer Secured Obligations
          shall operate in satisfaction pro tanto of the Current Issuer's
          covenants to the relevant Current Issuer Secured Creditors.

9.   Receiver

9.1  Appointment: At any time after the security constituted hereunder becomes
     enforceable, and whether or not the Note Trustee has taken possession of
     the Current Issuer Charged Property, the Note Trustee may appoint, by
     writing or by deed, such person or persons (including an officer or
     officers of the Note Trustee) as the Note Trustee thinks fit to be a
     receiver, a receiver and manager or an administrative receiver of the
     Current Issuer Charged Property or any part thereof (each a "Receiver")
     and, in the case of an appointment of more than one person, to act
     together or independently of the other or others.

9.2  Removal and Replacement: Except as otherwise required by statute, the
     Note Trustee may by writing or by deed remove a Receiver and appoint
     another in its place or to act with a Receiver and the Note Trustee may
     apply to the court for an order removing an administrative receiver.

9.3  Extension of Appointment: The exclusion of any part of the Current Issuer
     Charged Property from the appointment of the Receiver shall not preclude
     the Note Trustee from subsequently extending its appointment (or that of
     the Receiver replacing it) to that part of the Current Issuer Charged
     Property or appointing another Receiver over any other part of the
     Current Issuer Charged Property.

9.4  Agent of Current Issuer: The Receiver shall, so far as the law permits,
     be the agent of the Current Issuer and the Current Issuer alone shall be
     responsible for the Receiver's contracts, engagements, acts, omissions,
     misconduct, negligence or default and for liabilities incurred by it; and
     in no circumstances whatsoever shall the Note Trustee or any Current
     Issuer Secured Creditor be in any way responsible for or incur any
     liability in connection with its contracts, engagements, acts, omissions,
     misconduct, negligence or default, and if a liquidator of the Current
     Issuer shall be appointed, the Receiver shall act as principal and not as
     agent for the Note Trustee. Notwithstanding the generality of the
     foregoing, such Receiver shall in the exercise of its powers, authorities
     and discretions conform to the regulations or directions (if any)

                                      19
<PAGE>

     from time to time made and given by the Note Trustee.

9.5  Remuneration: Subject as provided otherwise by applicable law, the
     remuneration of the Receiver shall be fixed by the Note Trustee and may
     be or include a commission calculated by reference to the gross amount of
     all monies received or otherwise. Such remuneration and such commission
     (if any) shall be payable hereunder by the Current Issuer alone subject
     always to Clause 8.3 (Current Issuer Post-Enforcement Priority of
     Payments) and the amount of such remuneration shall form part of the
     Current Issuer Secured Obligations and shall accordingly be secured on
     the Current Issuer Charged Property under the security created by this
     Current Issuer Deed of Charge.

9.6  Powers of the Receiver: Subject, in the case of the Current Issuer Jersey
     Secured Property, to the provisions of the Jersey Security Law, the
     Receiver of the Current Issuer, in addition to any powers conferred on an
     administrative receiver, receiver, manager or receiver and manager by
     statute or common law, shall have the power to:

     (a)  take possession of, get in and collect the Current Issuer Charged
          Property;

     (b)  (subject to any restrictions under or in respect of relevant Current
          Issuer Charged Property) sell, transfer, convey, license, release or
          otherwise dispose of vary or deal with, and also grant any option to
          purchase, and effect exchanges of, the whole or any part of the
          Current Issuer Charged Property or any interest therein and grant or
          accept surrenders, disclaimers and variations in relation to or
          otherwise affecting the Current Issuer Charged Property in each case
          in such manner, for such consideration (if any) and generally upon
          such terms (including by deferred payment of payment by instalments)
          as it may think fit and/or concur in any of the foregoing (and
          nothing shall preclude any such disposal being made to a Current
          Issuer Secured Creditor);

     (c)  carry out any transaction, scheme or arrangement which it may, in
          its absolute discretion, consider appropriate with a view to or in
          connection with the sale of the Current Issuer Charged Property;

     (d)  insure the Current Issuer Charged Property against such risks and
          for such amounts as it may consider prudent and obtain bonds and
          performance guarantees;

     (e)  otherwise protect, maintain or improve, the Current Issuer Charged
          Property or any part thereof in any manner and for any purpose
          whatsoever as it shall think fit;

     (f)  transfer all or any of the Current Issuer Charged Property and/or
          any of the liabilities to any other company or body corporate,
          whether or not formed or acquired for the purpose (and whether or
          not a subsidiary or associated company of the Note Trustee or any
          other party to the Current Issuer Transaction Documents) and to form
          a subsidiary or subsidiaries of the Current Issuer;

     (g)  carry on and manage or concur in managing or appoint a manager of,
          the whole or any part of the business of the Current Issuer in such
          manner as it shall in its absolute discretion think fit including
          the power to enter into any

                                      20
<PAGE>

          contract and to perform, repudiate, rescind or vary any contract to
          which the Current Issuer is a party;

     (h)  sell or concur in selling the whole or any part of the Current
          Issuer's business whether as a going concern or otherwise;

     (i)  appoint, dismiss, engage or vary the terms of employment of any
          employees, managers, agents or advisers of the Current Issuer upon
          such terms as to remuneration and otherwise for such periods as it
          may in its absolute discretion think fit;

     (j)  in connection with the exercise or proposed exercise of any of its
          powers or in order to obtain payment of its remuneration or
          reimbursement of its expenses (in each case, whether or not already
          due), borrow or raise money from any person, without security or on
          the security of the Current Issuer Charged Property (either in
          priority to the security constituted by this Current Issuer Deed of
          Charge or otherwise) and generally in such manner and on such terms
          as it may think fit;

     (k)  bring, defend, submit to arbitration, negotiate, compromise,
          enforce, abandon and settle actions, suits, claims and proceedings
          concerning or affecting the Current Issuer Charged Property or the
          security created under this Current Issuer Deed of Charge;

     (l)  exercise any powers, discretions, voting, conversion or other rights
          or entitlements in relation to any of the Current Issuer Charged
          Property or incidental to the ownership of or rights in or to any of
          the Current Issuer Charged Property and to complete or effect any
          transaction entered into by the Current Issuer or disclaim, abandon
          or modify all or any of the outstanding contracts or arrangements of
          the Current Issuer relating to or affecting the Current Issuer
          Charged Property;

     (m)  generally carry out, or cause to be carried out any transaction or
          scheme or arrangement whatsoever, whether similar or not to any of
          the foregoing, in relation to the Current Issuer Charged Property
          which it may consider expedient as effectual as if it were solely
          and absolutely entitled to the Current Issuer Charged Property;

     (n)  in connection with the exercise of any of its powers, execute or do,
          or cause or authorise to be executed or done, on behalf of or in the
          name of the Current Issuer or otherwise, as it may think fit, all
          documents, acts or things which it may consider appropriate;

     (o)  redeem, discharge or compromise any security whether or not having
          priority to the security created hereunder;

     (p)  enter into covenants, guarantees, commitments, indemnities and other
          obligations or liabilities as it shall think fit;

     (q)  pay and discharge out of the profits and income of the Current
          Issuer Charged Property and the monies to be made by it carrying on
          any such business as

                                      21
<PAGE>

          aforesaid the expenses in and about the carrying on and management
          of such business or in the exercise of any of the powers conferred
          by Clause 9 (Receivers) or otherwise in respect of the Current
          Issuer Charged Property and all outgoings which it shall think fit
          to pay and to apply the residue of the said profits, income or
          monies in the manner provided by Clause 8.3 (Current Issuer
          Post-Enforcement Priority of Payments); and

     (r)  exercise any other powers, rights and/or remedies that may be
          available at law or in equity including the powers referred to in
          Section 1 of the Insolvency Act 1986.

9.7  Security: The Note Trustee may from time to time and at any time require
     any such Receiver to give security for the due performance of its duties
     and may fix the nature and amount of the security to be so given but the
     Note Trustee shall not be bound in any such case to require any such
     security.

9.8  Application by Receiver: Save so far as otherwise directed by the Note
     Trustee, all monies from time to time received by such Receiver shall be
     paid over to the Note Trustee to be held by it on the trusts declared
     under this Current Issuer Deed of Charge and to be distributed in
     accordance with Clause 8.3 (Current Issuer Post-Enforcement Priority of
     Payments).

9.9  Payment to Receiver: The Note Trustee may pay over to such Receiver any
     monies constituting part of the Current Issuer Charged Property for the
     same to be applied for the purposes of this Current Issuer Deed of Charge
     by such Receiver and the Note Trustee may from time to time determine
     what funds the Receiver shall be at liberty to keep in hand with a view
     to the performance of its duties as such Receiver.

9.10 No Restrictions: None of the restrictions imposed by the 1925 Act in
     relation to the appointment of receivers or the giving of notice or
     otherwise shall apply in relation to the Receiver.

9.11 Administration:

     (a)  Upon presentation of an application or a petition to a court of
          competent jurisdiction for an administration order or the service of
          a notice of intention to appoint an administrator or the filing of
          documents with the court for the appointment of an administrator in
          relation to the Current Issuer or other order having substantially
          the same effect to be made on application by a creditor or creditors
          of the Current Issuer, the Note Trustee shall, subject to it being
          indemnified to its satisfaction, as soon as practicable appoint a
          Receiver in accordance with this Current Issuer Deed of Charge (who
          shall, to the extent permitted by law, be an "administrative
          receiver" under Section 29 (2) of the Insolvency Act 1986) of the
          whole of the Current Issuer Charged Property and, in the case of any
          application to the court or petition the Note Trustee shall instruct
          the Receiver to attend at the hearing of the application or petition
          and take such steps as are necessary to prevent the appointment of
          an administrator. The Current Issuer Secured Creditors shall
          co-operate and do all acts and enter into such further documents,
          deeds or agreements as the Note Trustee may deem necessary or
          desirable to ensure that an administration order is not made and
          that an administrative receiver is appointed.

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<PAGE>

     (b)  Paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to
          the floating charge created hereunder.

10.  Further Assurance and Power of Attorney

10.1 Further Assurance: The Current Issuer covenants with and undertakes to
     the Note Trustee from time to time (notwithstanding that the security may
     not have become enforceable and the Note Trustee may not have served any
     Current Issuer Note Enforcement Notice) upon demand:

     (a)  to execute, at the Current Issuer's cost, any document or do any act
          or thing which the Note Trustee or any Receiver may specify
          (including executing such Security Interests over its rights in and
          over the Current Issuer Charged Property and any other assets of the
          Current Issuer in such form as the Note Trustee and/or any Receiver
          may require) with a view to:

          (i)  registering, perfecting, protecting or improving any charge or
               security or Security Interest (including any Jersey Security
               Interest) created or intended to be created by or pursuant to
               this Current Issuer Deed of Charge (including any act or
               document which may be required or desirable under the laws of
               any jurisdiction in which any property or assets may be located
               in order to confer on the Note Trustee security over such
               property and assets equivalent or similar to the security
               intended to be conferred by or pursuant to this Current Issuer
               Deed of Charge) and in such form as the Note Trustee or the
               Receiver may specify; and/or

          (ii) facilitating the realisation of or enforcement of rights of,
               all or any part of the Current Issuer Charged Property
               (including any Current Issuer Jersey Secured Property) or the
               exercise, or proposed exercise, of any of the powers, duties or
               discretions vested or intended to be vested in the Note Trustee
               or such Receiver by or pursuant to this Current Issuer Deed of
               Charge or doing any act or thing deemed necessary by the Note
               Trustee or the Receiver;

     (b)  to give or join in giving or procure the giving of any notices to
          any persons and obtain or procure that there is obtained any
          necessary acknowledgements in relation to such notices, all in such
          form, as the Note Trustee or the Receiver may require at the cost of
          the Current Issuer,

     and for the purpose of this Clause 10.1 (Further Assurance) a certificate
     in writing signed by the Note Trustee to the effect that any particular
     assurance or thing is required by it shall be conclusive evidence of that
     fact provided that the Current Issuer shall not be obliged to execute any
     such documentation or take any other action or steps to the extent that
     it would breach a restriction in any agreement to which it is a party or
     conflict with any applicable law.

10.2 Execution of Power of Attorney: Immediately upon execution of this
     Current Issuer Deed of Charge, the Current Issuer shall execute and
     deliver to the Note Trustee the power of attorney in or substantially in
     the form set out in Schedule 1 (Form of Security Power of Attorney).

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<PAGE>

10.3 Current Issuer Charged Property on Trust: To the extent permitted to do
     so under the Current Issuer Transaction Documents, for the purpose of
     giving effect to this Current Issuer Deed of Charge, the Current Issuer
     hereby declares that, after service of a Current Issuer Note Enforcement
     Notice, it will hold all the Current Issuer Charged Property (subject to
     the right of redemption) upon trust to convey, assign or otherwise deal
     with such Current Issuer Charged Property in such manner and to such
     person as the Note Trustee shall direct pursuant to this Current Issuer
     Deed of Charge, and declares that it shall be lawful for the Note Trustee
     to appoint a new trustee or trustees of the Current Issuer Charged
     Property in place of the Current Issuer.

11.  Crystallisation

11.1 Notice: In addition and without prejudice to any other event resulting in
     a crystallisation of the floating charge created by this Current Issuer
     Deed of Charge or any other right the Note Trustee may have, the Note
     Trustee may, by notice in writing to the Current Issuer, declare that the
     floating charge hereby created shall be converted into first specific
     fixed charges over such of the undertaking, property and assets of the
     Current Issuer as the Note Trustee may specify in such notice at any time
     if:

     (a)  a Current Issuer Note Event of Default or a Current Issuer Potential
          Note Event of Default has occurred; or

     (b)  the Note Trustee believes that the Current Issuer Charged Property
          or any part thereof is in danger of being seized or sold under any
          form of distress, execution or diligence levied or is otherwise in
          jeopardy; or

     (c)  the Note Trustee considers that it is desirable in order to protect
          the priority of the security created by this Current Issuer Deed of
          Charge,

     provided that the floating charge created by this Current Issuer Deed of
     Charge may not be converted into a fixed charge or charges solely as a
     result of the obtaining of a moratorium (or anything done with a view to
     obtaining a moratorium) under the Insolvency Act 2000 without the leave
     of the court.

11.2 Automatic Crystallisation: In addition and without prejudice to any other
     event resulting in a crystallisation of the floating charge contained
     herein and without prejudice to any rule of law which may have a similar
     effect, the floating charge created under this Current Issuer Deed of
     Charge shall automatically and without notice be converted with immediate
     effect into a fixed charge as regards:

     (a)  all property, assets or undertaking of the Current Issuer subject to
          the floating charge, upon:

          (i)  the presentation of a petition for or the making of an
               application for the compulsory winding-up of the Current
               Issuer;

          (ii) the convening of a meeting for the passing of a resolution for
               the voluntary winding-up of the Current Issuer;

         (iii) the presentation of a petition for or the making of an
               application for an administration order or the filing of
               documents with the court for the

                                      24
<PAGE>

               appointment of an administrator or the service of a notice of
               intention to appoint an administrator in relation to the
               Current Issuer;

          (iv) the presentation or making of an application for a warrant of
               execution, writ of fieri facias, garnishee order or charging
               order in respect of any of the assets of the Current Issuer
               subject to the floating charge;

          (v)  the occurrence of a Current Issuer Note Event of Default;
               and/or

     (b)  any property, assets or undertaking of the Current Issuer, which
          become subject to an Encumbrance in favour of any person other than
          the Note Trustee or which is/are the subject of a sale, transfer or
          other disposition, in either case, contrary to the covenants and
          undertakings contained in the Current Issuer Transaction Documents,
          immediately prior to such Encumbrance arising or such sale, transfer
          or other disposition being made,

     provided that the floating charge created by this Current Issuer Deed of
     Charge may not be converted into a fixed charge or charges solely as a
     result of the obtaining of a moratorium (or anything done with a view to
     obtaining a moratorium) under the Insolvency Act 2000 without the leave
     of the court.

12.  Provisions relating to the Security

12.1 Continuing Security: The security created under or pursuant to this
     Current Issuer Deed of Charge shall be:

     (a)  in addition to and independent of and shall not operate so as to
          prejudice or affect or merge in any other security, right of
          recourse or other right whatsoever which may be held by any of the
          Current Issuer Secured Creditors or the Note Trustee on their behalf
          in respect of the whole or any part of the Current Issuer Secured
          Obligations and shall not be affected by any release, reassignment
          or discharge of such other security; and

     (b)  a continuing security for the Current Issuer Secured Obligations and
          shall remain in force as continuing security for the Current Issuer
          Secured Creditors and shall not be considered as satisfied or
          discharged by any intermediate payment or settlement of the whole or
          any part of the Current Issuer Secured Obligations or the existence
          at any time of a credit balance on any current or other account or
          any other matter or thing whatsoever.

12.2 Consolidation: Section 93 of the 1925 Act shall not apply in relation to
     any of the charges contained in this Current Issuer Deed of Charge.

12.3 Ruling Off: If the Note Trustee receives notice of any Encumbrance
     affecting the whole or any part of the Current Issuer Charged Property or
     any security granted hereunder in contravention of the provisions hereof:

     (a)  the Note Trustee may open a new account in the name of the Current
          Issuer and, if it does not, it shall nevertheless be deemed to have
          done so at the time it received such notice; and

                                      25
<PAGE>

     (b)  all payments made by the Current Issuer to the Note Trustee after
          the Note Trustee receives such notice shall be credited or deemed to
          have been credited to the new account, and in no circumstances
          whatsoever shall operate to reduce the Current Issuer Secured
          Obligations as at the time the Note Trustee received such notice.

12.4 Avoidance of Payments: Any settlement, discharge or release between (a)
     the Current Issuer and (b) the Note Trustee or any Receiver (the
     "Relevant Person(s)") shall be conditional upon no security or payment
     granted or made to the Relevant Person(s) by the Current Issuer or any
     other person being avoided or reduced by virtue of any provisions or
     enactments relating to bankruptcy, insolvency or liquidation for the time
     being in force and, in the event of such security or payment being so
     avoided or reduced, the Relevant Person(s) shall be entitled to recover
     the value or amount of such security or payment from the Current Issuer
     and from the security subsequently as if such settlement, discharge or
     release had not occurred.

12.5 Retention of Charges: If the Note Trustee shall have reasonable grounds
     for believing that the Current Issuer may be insolvent or deemed to be
     insolvent pursuant to the provisions of the Insolvency Act 1986 (and
     production of a solvency certificate of a duly authorised officer of the
     Current Issuer shall be prima facie evidence of the solvency of the
     Current Issuer) as at the date of any payment made by the Current Issuer
     to the Note Trustee and that as a result, such payment may be capable of
     being avoided or clawed back, the Note Trustee shall be at liberty to
     retain the charges contained in or created pursuant to this Current
     Issuer Deed of Charge until the expiry of a period of one month plus such
     statutory period within which any assurance, security, guarantee or
     payment can be avoided or invalidated after the payment and discharge in
     full of all Current Issuer Secured Obligations notwithstanding any
     release, settlement, discharge or arrangement which may be given or made
     by the Note Trustee on, or as a consequence of, such payment or discharge
     of liability provided that, if at any time within such period, a petition
     or an application shall be presented to a competent court for an order
     for the winding up or the making of an administration order in respect of
     the Current Issuer, or if the Current Issuer shall commence to be wound
     up or to go into administration or any analogous proceedings shall be
     commenced by or against the Current Issuer, as the case may be, the Note
     Trustee shall be at liberty to continue to retain such security for such
     further period as the Note Trustee may determine and such security shall
     be deemed to continue to have been held as security for the payment and
     discharge to the Note Trustee of all Current Issuer Secured Obligations.

12.6 Possession: Entry into possession of the Current Issuer Charged Property
     or any part thereof shall not render the Note Trustee or any Receiver of
     the Current Issuer liable to account as mortgagee or creditor in
     possession for anything except actual receipts. If and whenever the Note
     Trustee or the Receiver enters into possession of the Current Issuer
     Charged Property, it shall be entitled at any time to go out of such
     possession.

12.7 Change of Name, etc.: This Deed shall remain valid and enforceable
     notwithstanding any change in the name, composition or constitution of
     the Note Trustee or the Current Issuer or any amalgamation, merger or
     consolidation by the Note Trustee or the Current Issuer, with any other
     corporation (whether, in the case of the Current Issuer, permitted under
     the Current Issuer Transaction Documents or not).

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<PAGE>

13.  Protection of Third Parties

13.1 No Enquiry: No purchaser from, or other person dealing with, the Note
     Trustee or a Receiver shall be concerned to enquire whether any of the
     powers exercised or purported to be exercised under this Current Issuer
     Deed of Charge has arisen or become exercisable, whether the Current
     Issuer Secured Obligations remain outstanding or have become payable,
     whether the Note Trustee or the Receiver is authorised to act or as to
     the propriety or validity of the exercise or purported exercise of any
     power; and the title and the position of such a purchaser or other person
     shall not be impeachable by reference to any of those matters and all the
     protection to purchasers contained in Sections 104 and 107 of the 1925
     Act shall apply to any person purchasing from or dealing with the Note
     Trustee or any such Receiver.

13.2 Receipts to Current Parties: Upon any sale, calling in, collection,
     enforcement or other realisation of the Current Issuer Charged Property
     in accordance with the terms hereof and upon any other dealing or
     transaction under or pursuant to this Current Issuer Deed of Charge, the
     receipt of the Note Trustee or any Receiver shall be an absolute and a
     conclusive discharge to a purchaser or other person dealing with the Note
     Trustee or such Receiver and shall relieve it of any obligation to see to
     the application of any monies paid to or by the direction of the Note
     Trustee or such Receiver.

14.  Set-Off

     The Note Trustee may at any time after the security created under this
     Current Issuer Deed of Charge has become enforceable in accordance with
     Clause 7.2 (Enforceable) without notice and notwithstanding any
     settlement of account or other matter whatsoever combine or consolidate
     all or any existing accounts of the Current Issuer whether in its own
     name or jointly with others and held by it or any Current Issuer Secured
     Creditor and may set-off or transfer all or any part of any credit
     balance or any sum standing to the credit of any such account (whether or
     not the same is due to the Current Issuer from the Note Trustee or
     relevant Current Issuer Secured Creditor and whether or not the credit
     balance and the account in debit or the Current Issuer Secured
     Obligations are expressed in the same currency in which case the Note
     Trustee is hereby authorised to effect any necessary conversions at its
     prevailing rates of exchange) in or towards satisfaction of any of the
     Current Issuer Secured Obligations (and on or at any time after the
     security created under this Current Issuer Deed of Charge has become
     enforceable in accordance with Clause 7.2 (Enforceable) the Security
     Trustee may make such application notwithstanding any specified maturity
     of any deposits), but subject always to the Current Issuer Priority of
     Payments, and may in its absolute discretion estimate the amount of any
     liability of the Current Issuer which is contingent or unascertained and
     thereafter set-off such estimated amount and no amount shall be payable
     by the Note Trustee to the Current Issuer unless and until all the
     Current Issuer Secured Obligations have been ascertained and fully repaid
     or discharged.

15.  Representations and Covenants

15.1 Representations and Warranties:

                                      27
<PAGE>

(a)  The Current Issuer hereby represents to the Note Trustee that it is, as
     of the date hereof, the beneficial owner of all of the Current Issuer
     Charged Property free and clear of all liens, claims, charges or
     Encumbrances except those specifically created by this Current Issuer
     Deed of Charge and undertakes that it will retain all rights associated
     with ownership of the Current Issuer Charged Property free and clear of
     all liens, claims, charges, Encumbrances except those specifically
     created by this Current Issuer Deed of Charge or any other Current Issuer
     Transaction Document.

(b)  The Current Issuer represents that it has taken all necessary steps to
     enable it to create the Security Interests in respect of the Current
     Issuer Charged Property in accordance with this Current Issuer Deed of
     Charge and has taken no action or steps which will or may prejudice its
     right, title and interest in, to and under the Current Issuer Charged
     Property.

15.2 Negative Covenants: The Current Issuer hereby undertakes that, for so
     long as any Current Issuer Secured Obligation remains outstanding, the
     Current Issuer shall not, save to the extent contemplated or provided in
     the Current Issuer Transaction Documents or unless it has obtained the
     prior written consent of the Note Trustee:

     (a)  open or maintain any bank account or deposit account with any bank
          or any other financial institution other than the Current Issuer
          Bank Accounts or close the Current Issuer Bank Accounts;

     (b)  either in a single transaction or in a series of transactions,
          whether related or not and whether voluntarily or involuntarily,
          sell, transfer, lease or otherwise dispose of or grant any option
          over all or any part of its property, assets or undertaking or any
          interest, estate, right, title or benefit therein or agree or
          purport to do any of the foregoing;

     (c)  create or permit to subsist any Security Interest (unless arising by
          operation of law) over or in respect of any of its property, assets
          (including any uncalled capital) or undertaking, present or future;

     (d)  incur any indebtedness in respect of borrowed money whatsoever or
          give any guarantee or indemnity in respect of any indebtedness of or
          of any obligation or any person;

     (e)  pay any dividend or make any other distribution to its shareholder
          or issue any further shares;

     (f)  consolidate or merge with any other person or convey or transfer its
          properties or assets substantially as an entirety to any other
          person;

     (g)  consent to any amendment to, or variation of or agree to waive or
          authorise any breach of any provision of any of the Current Issuer
          Transaction Documents or permit any person whose obligations form
          part of the Current Issuer Charged Property to be released from its
          respective obligations;

     (h)  offer to surrender to any company any amounts which are available
          for surrender by way of group relief within Chapter IV of Part X of
          the Income and Corporation Taxes Act 1988 except for full payment at
          the current

                                      28
<PAGE>

          applicable rate of corporation tax applied to the surrendered amount
          and payable at the date when corporation tax is due to be paid by
          the claimant or would be due in the absence of the surrender;

     (i)  do any act or thing the effect of which would be to make the Current
          Issuer resident in any jurisdiction other than the United Kingdom;

     (j)  permit any person other than the Current Issuer and the Note Trustee
          to have any equitable interest in any of its property, assets or
          undertakings or any interest, estate, right, title or benefit
          therein;

     (k)  purchase or otherwise acquire any Note or Notes (including the
          Current Issuer Notes); or

     (l)  engage in any activities in the United States (directly or through
          agents), nor derive any income from United States sources as
          determined under United States income tax principles and will not
          hold any property if doing so would cause it to be engaged or deemed
          to be engaged in a trade or business within the United States as
          determined under United States tax principles.

15.3 Positive covenants: The Current Issuer covenants and undertakes with the
     Note Trustee for the benefit of the Current Issuer Secured Creditors that
     it shall:

     (a)  Registration of Security: file or procure the filing with the
          Registrar of Companies pursuant to Chapter I of Part XII of the
          Companies Act 1985 of duly completed Forms 395 together with an
          executed original of this Current Issuer Deed of Charge and the
          required fee within 21 days after the date of this Current Issuer
          Deed of Charge;

     (b)  Notice of Assignment: on the date hereof join with the Note Trustee
          in giving notice of the assignments and the security created under
          or pursuant to this Current Issuer Deed of Charge to Funding, the
          Security Trustee and each other party to any Current Issuer
          Transaction Document not being a party to this Current Issuer Deed
          of Charge and for the purposes of the Jersey Security Interests to
          any person from whom the Current Issuer would have been entitled to
          claim the collateral (but for the Jersey Security Interests) and on
          any date hereafter (to the extent only that such notice and
          acknowledgement is not given under or pursuant to this Current
          Issuer Deed of Charge) join with the Note Trustee in giving notice
          of the assignments and the security created under this Current
          Issuer Deed of Charge to any party to a Current Issuer Transaction
          Document entered into by the Current Issuer after the date hereof
          and, for the purposes of the Jersey Security Interests, to any
          person from whom the Current Issuer would have been entitled to
          claim the collateral (but for the Jersey Security Interests), in
          each case in the form (or substantially in the form) set out in
          Schedule 3 (Form of Notice of Assignment);

     (c)  Accounts for Stock Exchange: cause to be prepared and certified by
          the Auditors of the Current Issuer in respect of each Financial
          Year, accounts in such form as will comply with relevant legal and
          accounting requirements for the time being and all requirements for
          the time being of any stock exchange on which the Current Issuer
          Notes are listed;

                                      29
<PAGE>

     (d)  Books and Records: at all times keep or procure the keeping of such
          books of account and records as may be necessary to comply with all
          applicable laws and so as to enable accounts of the Current Issuer
          to be prepared and allow the Note Trustee and any person or persons
          appointed by the Note Trustee free access to such books of account
          and records at all reasonable times during normal business hours
          upon reasonable notice in writing, provided that such inspection
          shall only be for the purposes of carrying out its duties under this
          Current Issuer Deed of Charge and any information so obtained shall
          only be used and passed on to any other person for the purpose of
          the Note Trustee carrying out its duties under this Current Issuer
          Deed of Charge;

     (e)  Notice of Current Issuer Note Event of Default: give notice in
          writing to the Note Trustee forthwith upon becoming aware of the
          occurrence of any Current Issuer Note Event of Default or Current
          Issuer Potential Note Event of Default including the status of any
          such default or matter and what action the Current Issuer is taking
          or proposes to take with respect thereto, without waiting for the
          Note Trustee to take any action;

     (f)  Certificates Relating to Financial Information: give to the Note
          Trustee (a) within seven days after demand by the Note Trustee
          therefor and (b) (without the necessity for any such demand)
          promptly after the publication of its audited accounts in respect of
          each Financial Year commencing with the Financial Year first ending
          after the date hereof and in any event not later than 180 days after
          the end of each such Financial Year a certificate signed by two
          directors of the Current Issuer to the effect that as at a date not
          more than seven days before delivering such certificate (the
          "certification date") there did not exist and had not existed since
          the certification date of the previous certificate (or in the case
          of the first such certificate the date hereof) any Current Issuer
          Note Event of Default or any Current Issuer Potential Note Event of
          Default (or if such then exists or existed specifying the same) and
          that during the period from and including the certification date of
          the last such certificate (or in the case of the first such
          certificate the date hereof) to and including the certification date
          of such certificate the Current Issuer has complied with all its
          obligations contained in this Current Issuer Deed of Charge and each
          of the other Current Issuer Transaction Documents or (if such is not
          the case) specifying the respects in which it has not so complied;

     (g)  Further Assurances: so far as permitted by applicable law, at all
          times execute all such further documents and do all such further
          acts and things as may be necessary at any time or times in the
          opinion of the Note Trustee to give effect to this Current Issuer
          Deed of Charge and the other Current Issuer Transaction Documents;

     (h)  Compliance with Current Issuer Transaction Documents: observe and
          comply with its obligations and use its reasonable endeavours to
          procure that each other party to any of the Current Issuer
          Transaction Documents complies with and performs all its respective
          obligations under each Current Issuer Transaction Document and not
          make any amendment or modification to such agreement or agree to
          waive or authorise any breach thereof without the prior written
          approval of the Note Trustee and notify the Note Trustee forthwith

                                      30
<PAGE>

          upon becoming aware of any breach by any such other party to any
          Current Issuer Transaction Document;

     (i)  Information: so far as permitted by applicable law, give or procure
          to be given to the Note Trustee such opinions, certificates,
          information and evidence as it shall require and in such form as it
          shall require (including without limitation the procurement by the
          Current Issuer of all such certificates called for by the Note
          Trustee pursuant to this Current Issuer Deed of Charge) for the
          purpose of the discharge or exercise of the duties, trusts, powers,
          authorities and discretions vested in it under this Current Issuer
          Deed of Charge or by operation of law;

     (j)  Taxes: duly and promptly pay and discharge all Taxes imposed upon it
          or its assets unless such Taxes are, in the opinion of the Note
          Trustee, being contested in good faith by the Current Issuer;

     (k)  Basis Rate Swap Agreement: in the event of termination of the
          Current Issuer Basis Rate Swap Agreement, notify the Note Trustee
          and the Rating Agencies and use its best efforts to enter into a
          replacement basis rate swap agreement upon terms acceptable to the
          Rating Agencies and the Note Trustee with a basis rate swap provider
          whom the Rating Agencies have previously confirmed in writing to the
          Current Issuer and the Note Trustee will not cause the then-current
          ratings of the Current Issuer Notes to be downgraded, withdrawn or
          qualified;

     (l)  Currency Swap Agreements:

          (i)  Dollar Currency Swap Agreements: in the event of termination of
               any Transaction (as defined in the Current Issuer Dollar
               Currency Swap Agreements) under any Current Issuer Dollar
               Currency Swap Agreement, notify the Note Trustee and the Rating
               Agencies and use its best efforts to enter into a replacement
               of that Transaction in respect of the Dollar Notes (or, as
               applicable, the relevant class of the Dollar Notes) upon terms
               acceptable to the Rating Agencies and the Note Trustee with a
               dollar currency swap provider whom the Rating Agencies have
               previously confirmed in writing to the Current Issuer and the
               Note Trustee will not cause the then-current ratings of the
               Current Issuer Notes to be downgraded, withdrawn or qualified;

          (ii) Euro Currency Swap Agreements: in the event of termination of
               any Transaction (as defined in the Current Issuer Euro Currency
               Swap Agreements) under any Current Issuer Euro Currency Swap
               Agreement, notify the Note Trustee and the Rating Agencies and
               use its best efforts to enter into a replacement of that
               Transaction in respect of the Euro Notes (or, as applicable,
               the relevant class of the Euro Notes) upon terms acceptable to
               the Rating Agencies and the Note Trustee with a euro currency
               swap provider whom the Rating Agencies have previously
               confirmed in writing to the Current Issuer and the Note Trustee
               will not cause the then-current ratings of the Current Issuer
               Notes to be downgraded, withdrawn or qualified;

                                      31
<PAGE>

     (m)  Interest Rate Swap Agreement: in the event of termination of any
          Transaction (as defined in the Current Issuer Interest Rate Swap
          Agreement) under the Current Issuer Interest Rate Swap Agreement,
          notify the Note Trustee and the Rating Agencies and use its best
          efforts to enter into a replacement of that Transaction in respect
          of the Series 3 Class A2 Notes upon terms acceptable to the Rating
          Agencies and the Note Trustee with an interest rate swap provider
          whom the Rating Agencies have previously confirmed in writing to the
          Current Issuer and the Note Trustee will not cause the then current
          ratings of the Current Issuer Notes to be downgraded, withdrawn or
          qualified;

     (n)  Bank Accounts: in the event of termination of the Current Issuer
          Bank Account Agreement, subject to and in accordance with the
          provisions of the Current Issuer Bank Account Agreement use its
          reasonable endeavours to enter into a replacement bank account
          agreement; and

     (o)  Cash Management Agreement: in the event of termination of the
          Current Issuer Cash Management Agreement, subject to and in
          accordance with the provisions of the Current Issuer Cash Management
          Agreement, use its reasonable endeavours to enter into a replacement
          cash management agreement.

     In addition to the foregoing, the Current Issuer hereby covenants with
     each of the Current Issuer Swap Providers, that it shall not make any
     amendment or modification to, or exercise any waiver in respect of, the
     Current Issuer Cash Management Agreement which would be adversely
     prejudicial to the interests of any Current Issuer Swap Provider, without
     the prior written consent of the affected Current Issuer Swap Provider
     save that to the extent required, such consent shall not be unreasonably
     withheld or delayed.

16.  Note Trustee Provisions

16.1 Supplement to Trustee Acts: It is hereby agreed that Clause 10
     (Supplement to Trustee Acts) of the Current Issuer Trust Deed shall be
     incorporated in and shall apply, mutatis mutandis, to this Current Issuer
     Deed of Charge (and for that purpose references therein to "these
     presents" or to "this Deed" shall be construed as references to this
     Current Issuer Deed of Charge) provided that for the purposes of Clause
     10.3(q) of the Current Issuer Trust Deed at any time after the redemption
     in full of the Current Issuer Notes, the Note Trustee shall have regard
     to the interests of the Current Issuer Secured Creditor which ranks next
     highest under the Current Issuer Post-Enforcement Priority of Payment.

16.2 Appointment, Removal and Retirement: It is hereby agreed that Clause 14
     (Appointment, Removal and Retirement of Note Trustee) of the Current
     Issuer Trust Deed shall be incorporated in and shall apply, mutatis
     mutandis, to this Current Issuer Deed of Charge (and for that purpose
     references therein to "these presents" or to "this Deed" shall be
     construed as references to this Current Issuer Deed of Charge) provided
     that for the purposes of this Current Issuer Deed of Charge it shall be
     an additional requirement that the Note Trustee under this Current Issuer
     Deed of Charge shall be the same person or persons as the Note Trustee
     under the Current Issuer Trust Deed.

                                      32
<PAGE>

16.3 Remuneration and Indemnification of Note Trustee: It is hereby agreed
     that Clause 9 (Remuneration and Indemnification of Note Trustee) of the
     Current Issuer Trust Deed shall be incorporated in and shall apply,
     mutatis mutandis, to this Current Issuer Deed of Charge (and for that
     purpose references therein to "these presents" or to "this Deed" shall be
     construed as references to this Current Issuer Deed of Charge).

16.4 Meetings of Noteholders: It is hereby agreed that Schedule 4 (Provisions
     for Meetings of Noteholders) of the Current Issuer Trust Deed shall be
     incorporated in and shall apply, mutatis mutandis, to this Current Issuer
     Deed of Charge.

16.5 Investment of Moneys: It is hereby agreed that Clause 8.3 (Authorised
     Investments) of the Current Issuer Trust Deed shall be incorporated in
     and shall apply, mutatis mutandis, to this Current Issuer Deed of Charge.

16.6 Acknowledgement: Each of the parties to this Current Issuer Deed of
     Charge hereby acknowledges that it is bound by the provisions of the
     Current Issuer Trust Deed which are incorporated by reference into this
     Current Issuer Deed of Charge and confirms that it has received a copy of
     the Current Issuer Trust Deed.

16.7 Jersey Law Waivers:

     (a)  Any right which at any time the Current Issuer has under the
          existing or future laws of Jersey whether by virtue of the droit de
          discussion or otherwise to require that recourse be had to the
          assets of any other person before any claim is enforced against the
          Current Issuer in respect of the obligations hereby assumed by the
          Current Issuer is hereby abandoned and waived.

     (b)  The Current Issuer undertakes that if at any time any person
          indemnified sues the Current Issuer in respect of any such
          obligations and the person in respect of whose obligations the
          indemnity is given is not sued also, the Current Issuer shall not
          claim that such person be made a party to the proceedings and the
          Current Issuer agrees to be bound by this indemnity whether or not
          it is made a party to legal proceedings for the recovery of the
          amount due or owing to the person indemnified, as aforesaid, by the
          person in respect of whose obligations the indemnity is given and
          whether the formalities required by any law of Jersey whether
          existing or future in regard to the rights or obligations of
          securities shall or shall not have been observed.

     (c)  Any right which the Current Issuer may have under the existing or
          future laws of Jersey whether by virtue of the droit de division or
          otherwise to require that any liability under the indemnity referred
          to in (b) above be divided or apportioned with any other person or
          reduced in any manner whatsoever is hereby abandoned and waived.

17.  Modification and Waiver

17.1 Modification: The Note Trustee may without the consent or sanction of the
     Noteholders or any other Current Issuer Secured Creditor at any time and
     from time to time concur with the Current Issuer in making any
     modification (except a Basic Terms Modification (as defined in paragraph
     1 of Schedule 4 (Provisions for Meetings of Noteholders) to the Current
     Issuer Trust Deed) (i) to this Current Issuer

                                      33
<PAGE>

     Deed of Charge, the Current Issuer Notes, the Current Issuer Trust Deed
     or to any of the other Transaction Documents which in the opinion of the
     Note Trustee it may be proper to make PROVIDED THAT the Note Trustee is
     of the opinion that such modification will not be materially prejudicial
     to the interests of the Noteholders or (ii) to this Current Issuer Deed
     of Charge, the Current Issuer Notes, the Current Issuer Trust Deed or any
     of the other Transaction Documents if in the opinion of the Note Trustee
     such modification is of a formal, minor or technical nature or to correct
     a manifest error or proven error. For the purposes of this Clause 17.1
     (Modification), a proposed modification will not materially harm the
     interest of any Noteholder solely as a result of any New Issuer executing
     a Deed of Accession pursuant to Clause 3.12 (New Intercompany Loans) of
     the Funding Deed of Charge or Clause 2.2 (New Intercompany Loan
     Agreement) of the Intercompany Loan Terms and Conditions. Any such
     modification may be made on such terms and subject to such conditions (if
     any) as the Note Trustee may determine, shall be binding upon the Current
     Issuer and the Current Issuer Secured Creditors and, unless the Note
     Trustee agrees otherwise, shall be notified by the Current Issuer to the
     Noteholders in accordance with the Conditions and to the other Current
     Issuer Secured Creditors as soon as practicable thereafter. So long as
     any of the Current Issuer Notes are rated by the Rating Agencies, the
     Current Issuer shall notify the Rating Agencies in writing as soon as
     reasonably practicable thereafter of any modification to the provisions
     of this Current Issuer Deed of Charge, the Current Issuer Notes, the
     Current Issuer Trust Deed or any of the other Current Issuer Transaction
     Documents.

17.2 Waiver: Subject as expressly provided otherwise in the Current Issuer
     Notes or in any other Transaction Document, the Note Trustee may from
     time to time and at any time without the consent or sanction of the
     Noteholders or any other Current Issuer Secured Creditor and without
     prejudice to its rights in respect of any subsequent breach, but only if
     and in so far as in its opinion the interests of the Noteholders shall
     not be materially prejudiced thereby waive or authorise any breach or
     proposed breach by the Current Issuer or any other party thereto of any
     of the covenants or provisions contained in this Current Issuer Deed of
     Charge or in any of the other Transaction Documents or determine that any
     Current Issuer Note Event of Default shall not be treated as such for the
     purposes of this Current Issuer Deed of Charge, the Current Issuer Notes
     and the Current Issuer Trust Deed PROVIDED ALWAYS THAT the Note Trustee
     shall not exercise any powers conferred on it by this Clause 17.2
     (Waiver) in contravention of any express direction given by Extraordinary
     Resolution or by a request in writing of the relevant Noteholders in
     accordance with the Conditions (but so that no such direction or request
     shall affect any waiver, authorisation or determination previously given
     or made). Any such waiver, authorisation or determination:

     (a)  may be given or made on such terms and subject to such conditions
          (if any) as the Note Trustee may determine;

     (b)  shall be binding on the Noteholders and the other Current Issuer
          Secured Creditors, if, but only if, the Note Trustee shall so
          require; and

     (c)  shall be notified by the Current Issuer to the Noteholders in
          accordance with the Conditions and to the other Current Issuer
          Secured Creditors as soon as practicable thereafter.

                                      34
<PAGE>

     The provisions of this Clause 17.2 (Waiver) shall be in lieu of Section
     316(a)(1)(B) of the Trust Indenture Act and Section 316(a)(1)(B) of the
     Trust Indenture Act is hereby expressly excluded from this Current Issuer
     Deed of Charge, the Current Issuer Notes and the Current Issuer Trust
     Deed as permitted by the Trust Indenture Act.

18.  Miscellaneous Provisions

18.1 Evidence of Indebtedness: In any action, proceedings or claim relating to
     this Current Issuer Deed of Charge or the charges contained in this
     Current Issuer Deed of Charge, a statement as to any amount due to any
     Current Issuer Secured Creditor or of the Current Issuer Secured
     Obligations or any part thereof or a statement of any amounts which have
     been notified to the Note Trustee as being amounts due to any Current
     Issuer Secured Creditor which is certified as being correct by an officer
     of the Note Trustee or an officer of the relevant Current Issuer Secured
     Creditor shall, save in the case of manifest error, be conclusive
     evidence that such amount is in fact due and payable.

18.2 Liability: All the liabilities and obligations of the Current Issuer
     under or by virtue of this Current Issuer Deed of Charge shall not be
     impaired by:

     (a)  any failure of this Current Issuer Deed of Charge to be legal,
          valid, binding and enforceable as regards the Current Issuer whether
          as a result of a lack of corporate powers or of directors'
          authority, defective execution or for any other reason whatsoever;

     (b)  any giving of time, forbearance, indulgence or waiver as regards the
          Current Issuer;

     (c)  a discharge or release of the Current Issuer; or

     (d)  any other matter or event whatsoever whether similar to the
          foregoing or not which might have the effect of impairing all or any
          of its liabilities or obligations except proper and valid payment or
          discharge of all Current Issuer Secured Obligations and amounts
          whatsoever which this Current Issuer Deed of Charge provides are to
          be paid by the Current Issuer or an absolute discharge or release of
          the Current Issuer signed by the Current Issuer Secured Creditors
          and the Note Trustee.

18.3 Current Issuer Secured Creditors: Each Current Issuer Secured Creditor
     shall be bound by the provisions of this Current Issuer Deed of Charge as
     if it contained covenants by each Current Issuer Secured Creditor in
     favour of the Note Trustee and every other Current Issuer Secured
     Creditor to observe and be bound by all the provisions of this Current
     Issuer Deed of Charge expressed to apply to the Current Issuer Secured
     Creditors.

19.  Rights cumulative

     The respective rights of the Note Trustee, the Current Issuer Secured
     Creditors and any Receiver to this Current Issuer Deed of Charge are
     cumulative and may be exercised as often as each considers appropriate
     and are in addition to their respective rights under the general law. No
     failure on the part of the Note Trustee, the Current

                                      35
<PAGE>

     Issuer Secured Creditors or any Receiver 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 Current Issuer Deed of Charge are cumulative and not
     exclusive of any remedies provided by law.

20.  Assignment

     None of the Current Issuer Secured Creditors may assign, encumber or
     transfer all or any part of its rights or benefits and/or transfer its
     obligations under this Current Issuer Deed of Charge without the prior
     written consent of the Note Trustee.

21.  Non Petition Covenant; Corporate Obligations

21.1 Non Petition: Each of the parties hereto hereby agrees that it shall not
     institute against the Current Issuer any winding-up, administration,
     insolvency or similar proceedings for so long as any sum is outstanding
     under Current Issuer Notes or for two years plus one day since the last
     day on which any such sum was outstanding provided that the Note Trustee
     may prove or lodge a claim in the event of a liquidation initiated by any
     other person.

21.2 Corporate Obligations: To the extent permitted by law, no recourse under
     any obligation, covenant, or agreement of any person contained in this
     Current Issuer Deed of Charge 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 Current Issuer Deed of
     Charge, 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 Current Issuer
     Deed of Charge.

22.  Notices

     Any notices or other communication or document to be given or delivered
     pursuant to this Current Issuer Deed of Charge 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 Current Issuer, to Granite Mortgages 04-3 plc,
          Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile number 020
          7606 0643) for the attention of the Company Secretary with a copy to
          Northern Rock plc,

                                      36
<PAGE>

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

     (c)  in the case of the Principal Paying Agent, the Agent Bank, the
          Registrar, the Transfer Agent or the Account Bank, to Citibank,
          N.A., 5 Carmelite Street, London, EC4Y 0PA;

     (d)  in the case of the Current Issuer Cash Manager 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;

     (e)  in the case of the U.S. Paying Agent, to Citibank, N.A., 111 Wall
          Street, 14th Floor, Zone 3, New York, N.Y. 10043, U.S.A. (facsimile
          number 212 657 3862) for the attention of Global Agency and Trust;

     (f)  in the case of the Basis Rate Swap Provider, 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;

     (g)  in the case of the Dollar Currency Swap Provider in respect of the
          Series 1 Notes, to Barclays Bank plc, 54 Lombard Street, London EC3P
          3AH (facsimile number 020 7773 4932) for the attention of
          Derivatives Director, Legal Division;

     (h)  in the case of the Dollar Currency Swap Provider in respect of the
          Series 2 Class A1 Notes, to Swiss Re Financial Products Corporation,
          55 East 52nd Street, 39th Floor, New York, New York 10055 (facsimile
          number +1 (212) 3175335) for the attention of Head of Operations;

     (i)  in the case of the Euro Currency Swap Provider, to Citibank, N.A.,
          London Branch, Citigroup Centre, 33 Canada Square, Canary Wharf,
          London E14 5LB (facsimile number 020 7986 1927) for the attention of
          European Securitisation Derivatives (with copies for the attention
          of Fixed Income Legal Department (facsimile number 020 7508 9116)
          and Structured Derivatives Support Team (facsimile number 020 8636
          3868);

     (j)  in the case of the Interest Rate Swap Provider, to UBS Limited, 1
          Finsbury Avenue, London EC2M 2PP (facsimile number 020 7567 4406/020
          7568 9248) for the attention of Credit Risk Management -
          Documentation Unit/Legal Department;

     (k)  in the case of the Corporate Services Provider, to Law Debenture
          Corporate Services Limited, Fifth Floor, 100 Wood Street, London
          EC2V 7EX (facsimile number 020 7606 0643) for the attention of the
          Company Secretary;

     (l)  in the case of Moody's, to Moody's Investor Services, 1st Floor, 2
          Minster Court, Mincing Lane, London EC3R 7XB (facsimile number 020
          7772 5400) for the attention of Head of Monitoring Group, Structured
          Finance;

                                      37
<PAGE>

     (m)  in the case of S&P, to Standard & Poor's, 20 Canada Square, Canary
          Wharf, London E14 5LH (facsimile number 020 7176 3598) for the
          attention of the Structured Finance Surveillance Group; and

     (n)  in the case of Fitch, to Fitch Ratings Limited, Eldon House, 2 Eldon
          Street, London EC2M 7UA (facsimile number: 020 7417 6262) for the
          attention of European Structured Finance,

     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
     to the others by fifteen days prior written notice in accordance with the
     provisions of this Clause 22 (Notices).

23.  Third Party Rights

     A person who is not a party to this Current Issuer Deed of Charge 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 Deed 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 Current
     Issuer Deed of Charge shall be invalid, illegal or unenforceable in any
     jurisdiction, the validity, legality and enforceability of the remaining
     provisions or obligations under this Current Issuer Deed of Charge, or of
     such provision or obligation in any other jurisdiction, shall not be
     affected or impaired thereby.

25.  Governing Law and Jurisdiction; Appropriate Forum

25.1 Governing Law: This Deed is governed by, and shall be construed in
     accordance with, English law, save that those parts of this Current
     Issuer Deed of Charge concerned with the creation, subsistence or
     enforcement of the Jersey Security Interests shall be governed by, and
     shall be construed in accordance with Jersey law.

25.2 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 Current Issuer Deed of Charge and, for such
     purposes, irrevocably submits to the jurisdiction of such courts.

                                      38
<PAGE>

25.3 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 of which this Current Issuer Deed of Charge has been executed by
the parties hereto as a deed which has been delivered on the date first
appearing on page one.

                                      39
<PAGE>

                                EXECUTION PAGE

The Current Issuer

<TABLE>
<CAPTION>
<S>                                                     <C>
Executed by
GRANITE MORTGAGES 04-3 PLC
as its deed as follows:                                 By:________________________________________________
Signed for and on its behalf by one of its                     for and on behalf of LDC
directors and by another of its directors/its                  Securitisation Director No. 1 Limited
secretary                                                      - Director

                                                        Name: Clive Rakestrow
                                                              ---------------------------------------------

                                                        By:________________________________________________
                                                               for and on behalf of LDC
                                                               Securitisation Director No. 2 Limited
                                                               - Director

                                                        Name: Sharon Tyson
                                                              ---------------------------------------------

The Note Trustee

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                 By:________________________________________________
Signed for and on its behalf by one of its duly                   Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                        Name:______________________________________________

The Principal Paying Agent, the Agent Bank, the
Registrar, the Transfer Agent, and the Account
Bank

Executed by
CITIBANK, N.A.
as follows:                                             By:________________________________________________
Signed for and on its behalf by one of its duly                   Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                        Name:______________________________________________

                                      40
<PAGE>

The US Paying Agent
Executed by
CITIBANK, N.A.
as follows:                                             By:________________________________________________
Signed for and on its behalf by one of its duly                   Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                        Name:______________________________________________

The Current Issuer Cash Manager and the Basis Rate Swap Provider

Executed by
NORTHERN ROCK PLC
as its deed as follows:                                  By:________________________________________________
Signed for and on its behalf by one of its duly                    Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                         Name:______________________________________________

Signature:_______________________________________
          Witness

Full Name:_______________________________________
Occupation: Solicitor
            -------------------------------------
Address:  c/o Sidley Austin Brown & Wood
            -------------------------------------
            Woolgate Exchange
            -------------------------------------
            25 Basinghall Street
            -------------------------------------
            London EC2V 5HA
            -------------------------------------

The Corporate Service Provider

Executed by
LAW DEBENTURE CORPORATE
SERVICES LIMITED
as its deed as follows:                                 By:________________________________________________
Signed for and on its behalf by one of its              Director
directors and by another of its directors/its
secretary
                                                        Name:______________________________________________

                                                        By:________________________________________________
                                                               Director/Secretary

                                                        Name:______________________________________________
</TABLE>

                                      41
<PAGE>

The Dollar Currency Swap Provider in
respect of the Series 1 Notes

<TABLE>
<CAPTION>
<S>                                                     <C>
Executed by
BARCLAYS BANK PLC                                       By:________________________________________________
as its deed as follows:                                           Duly Authorised Attorney/Signatory
Signed for and on its behalf by one of its duly
authorised signatories
                                                        Name:______________________________________________

The Dollar Currency Swap Provider in
respect of the Series 2 Class A1 Notes

Executed by
SWISS RE FINANCIAL PRODUCTS CORPORATION
as its deed as follows:                                 By:________________________________________________
Signed for and on its behalf by one of its duly                   Duly Authorised Attorney/Signatory
authorised signatories

                                                        Name:______________________________________________

The Euro Currency Swap Provider

Executed by
CITIBANK, N.A., LONDON BRANCH
as its deed as follows:                                 By:________________________________________________
Signed for and on its behalf by one of its duly                   Duly Authorised Attorney/Signatory
authorised attornies

                                                        Name:______________________________________________

The Interest Rate Swap Provider

Executed by
UBS LIMITED
as its deed as follows:                                 By:________________________________________________
Signed for and on its behalf by one of its duly                   Duly Authorised Attorney/Signatory
authorised signatories

                                                        Name:______________________________________________
</TABLE>

                                      42
<PAGE>

                                  SCHEDULE 1

                      FORM OF SECURITY POWER OF ATTORNEY

THIS POWER OF ATTORNEY is made on [o] by Granite Mortgages 04-3 plc
(registered number 5168395) a private limited liability company incorporated
under the laws of England and Wales whose registered office is at Fifth Floor,
100 Wood Street, London EC2V 7EX (the "Principal").

WHEREAS

(1)  By virtue of a Deed (as amended, varied, supplemented or novated from
     time to time the "Current Issuer Deed of Charge") dated 22 September 2004
     between Granite Mortgages 04-3 plc, The Bank of New York as Note Trustee
     and others, provision was made for the execution by the Principal of this
     Power of Attorney.

(2)  Words and phrases in this Power of Attorney shall (save where expressed
     to the contrary) have the same meanings respectively as the words and
     phrases in the Current Issuer Deed of Charge.

NOW THIS POWER OF ATTORNEY WITNESSETH

1.   The Principal hereby irrevocably (within the meaning of Section 4 of the
     Powers of Attorney Act 1971) and by way of security for the payment and
     performance of the Current Issuer Secured Obligations and the covenants,
     conditions, obligations and undertakings on the part of the Principal
     contained in the Current Issuer Deed of Charge and the other Current
     Issuer Transaction Documents to which the Principal is a party from time
     to time appoints The Bank of New York and any other person or persons for
     the time being the Note Trustee or Note Trustees of and under the Current
     Issuer Deed of Charge (the "Attorney") and each and every person to whom
     the Note Trustee shall from time to time have delegated the exercise of
     the power of attorney conferred by this Power of Attorney (each a
     "Delegate") and any receiver including any administrative receiver and
     any manager (the "Receiver") and/or administrator (the "Administrator")
     appointed from time to time by the Attorney or on its behalf its true and
     lawful attorney for and in the Principal's name or otherwise jointly and
     severally to sign, seal, execute, deliver, perfect and do any assurance,
     act, matter or thing which the Attorney, Delegate, Receiver or
     Administrator considers in each case to be necessary for the protection
     or preservation of the Attorney's and the Current Issuer Secured
     Creditors' interests and rights (as described in the Current Issuer Deed
     of Charge) in and to the Current Issuer Charged Property or which ought
     to be done by the Principal under the covenants, undertakings and
     provisions contained in the Current Issuer Deed of Charge and the other
     Current Issuer Transaction Documents to which the Principal is a party
     from time to time and generally to in its name and on its behalf to
     exercise all or any of the powers, authorities or discretions conferred
     by or pursuant to the Current Issuer Deed of Charge on the Note Trustee
     and/or any Receiver whether on or at any time after the security has
     become enforceable in accordance with Clause 7.2 (Enforceable) of the
     Current Issuer Deed of Charge or in any other circumstances where the
     Attorney has become entitled to take any of the

                                      43
<PAGE>

     steps referred to in the Current Issuer Deed of Charge including (without
     limitation) any or all of the following:

     (a)  to do every act or thing which the Attorney, Delegate, Receiver or
          Administrator may deem to be necessary, proper or expedient for
          getting in any of the Current Issuer Charged Property and/or fully
          and effectively vesting, transferring or assigning the Current
          Issuer Charged Property or any part thereof and/or the Principal's
          estate, right, title, benefit and/or interest therein or thereto in
          or to the Attorney and its successors in title or other person or
          persons entitled to the benefit thereof or for carrying into effect
          any other dealing with the Current Issuer Charged Property
          whatsoever permitted under the Current Issuer Deed of Charge in the
          same manner and as fully and effectively as the Principal could have
          done;

     (b)  the power by writing under its hand by an officer of the Attorney
          (including every Receiver appointed under the Current Issuer Deed of
          Charge) from time to time to appoint a substitute attorney (each a
          "Substitute") who shall have power to act on behalf of the Principal
          as if that Substitute shall have been originally appointed Attorney
          by this Power of Attorney and/or to revoke any such appointment at
          any time without assigning any reason therefor.

2.   In favour of the Attorney, any Delegate, any Receiver and/or
     Administrator and/or Substitute, or a person dealing with any of them and
     the successors and assigns of such a person, all acts properly done and
     documents executed or signed by the Attorney, a Delegate, a Receiver, an
     Administrator or a Substitute in the purported exercise of any power
     conferred by this Power of Attorney shall for all purposes be valid and
     binding on the Principal and its successors and assigns.

3.   The Principal irrevocably and unconditionally undertakes to indemnify the
     Attorney and each Delegate, Receiver and/or Administrator and/or
     Substitute appointed from time to time by the Attorney and their
     respective estates (each an "Indemnified Party") against all actions,
     proceedings, claims, costs, expenses and liabilities of every description
     arising from the exercise, or the purported exercise, of any of the
     powers conferred by this Power of Attorney, save where the same arises as
     the result of the fraud, negligence or wilful default of the relevant
     Indemnified Party or its officers or employees.

4.   The provisions of Clause 3 (Current Issuer Security) of the Current
     Issuer Deed of Charge shall continue in force after the revocation or
     termination, howsoever arising, of this Power of Attorney.

5.   The laws of England and Wales shall apply to this Power of Attorney and
     the interpretation thereof and to all acts of the Attorney and each
     Delegate, Receiver and/or Administrator and/or Substitute carried out or
     purported to be carried out under the terms hereof except that in
     relation to any action taken by the Attorney, each Delegate, Receiver
     and/or Administrator/and or Substitute in respect of the Jersey Security
     Interests or the Current Issuer Jersey Secured Property, the laws of
     Jersey shall apply.

6.   The Principal hereby agrees at all times hereafter to ratify and confirm
     whatsoever the said Attorney or its attorney or attorneys or any
     Delegate, Receiver or Administrator

                                      44
<PAGE>

     or Substitute shall properly and lawfully do or cause to be done in and
     concerning the Current Issuer Charged Property.

IN WITNESS whereof this Power of Attorney has been executed as a deed by the
Principal the day and year first before written.

EXECUTED AS A DEED by           )

GRANITE MORTGAGES 04-3 PLC      )

acting by:                      )

Director

Name:

Title:

Director/Secretary

Name:

Title:

                                      45
<PAGE>

                                  SCHEDULE 2

             CURRENT ISSUER POST-ENFORCEMENT PRIORITY OF PAYMENTS

Following enforcement of the Current Issuer Security, on each Payment Date the
Note Trustee (or the Current Issuer Cash Manager on its behalf) will apply
amounts received or recovered as follows:

     (A)  first, to pay amounts due to the Note Trustee (and any Receiver
          appointed by the Note Trustee) together with interest and (if
          necessary) VAT on those amounts and to provide for any amounts then
          due or to become due and payable to the Note Trustee and the
          Receiver under the provisions of the Current Issuer Trust Deed, the
          Current Issuer Deed of Charge and any other Transaction Document;

     (B)  second, to pay, in no order of priority among them but in proportion
          to the respective amounts due, the Agent Bank, the Paying Agents,
          the Transfer Agent and the Registrar, together with interest and (if
          necessary) VAT on those amounts and to provide for any costs,
          charges, liabilities and expenses then due or to become due and
          payable to them under the provisions of the Current Issuer Paying
          Agent and Agent Bank Agreement;

     (C)  third, in no order of priority among them but in proportion to the
          respective amounts due, towards payment of amounts (together with
          (if necessary) VAT on those amounts) due and payable to the Current
          Issuer Cash Manager under the Current Issuer Cash Management
          Agreement and to the Corporate Services Provider under the Current
          Issuer Corporate Services Agreement and to the Account Bank under
          the Current Issuer Bank Account Agreement;

     (D)  fourth, in no order of priority among them but in proportion to the
          respective amounts due, to pay:

          (i)  amounts (including such part of any termination payment) due to
               the Basis Rate Swap Provider (except for any termination
               payment or any part thereof due and payable to the Basis Rate
               Swap Provider as a result of a Basis Rate Swap Provider Default
               by that Basis Rate Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Basis Rate Swap and applied
               in accordance with this order of priority of payments);

          (ii) amounts (including such part of any termination payment) due to
               the Series 1 Class A1 Dollar Currency Swap Provider under the
               Series 1 Class A1 Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a

                                      46
<PAGE>

               Downgrade Termination Event in respect of the Series 1 Class A1
               Dollar Currency Swap and applied in accordance with this order
               of priority of payments) and from amounts received from the
               Series 1 Class A1 Dollar Currency Swap Provider to pay interest
               due or overdue and to repay principal on the Series 1 Class A1
               Notes until the Series 1 Class A1 Notes have been repaid in
               full;

         (iii) amounts (including such part of any termination payment) due
               to the Series 1 Class A2 Euro Currency Swap Provider under the
               Series 1 Class A2 Euro Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Euro Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 1 Class A2 Euro
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               1 Class A2 Euro Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 1 Class A2 Notes
               until the Series 1 Class A2 Notes have been repaid in full;

          (iv) amounts (including such part of any termination payment) due to
               the Series 1 Class A3 Dollar Currency Swap Provider under the
               Series 1 Class A3 Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider, save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 1 Class A3 Dollar
               Currency Swap and applied in accordance with this order of
               priority of payments) and from the amounts received from the
               Series 1 Class A3 Dollar Currency Swap Provider to pay interest
               due or overdue and to repay principal on the Series 1 Class A3
               Notes until the Series 1 Class A3 Notes have been repaid in
               full;

          (v)  amounts (including such part of any termination payment) due to
               the Series 2 Class A1 Dollar Currency Swap Provider under the
               Series 2 Class A1 Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class A1 Dollar
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               2 Class A1 Dollar Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 2 Class A1 Notes
               until the Series 2 Class A1 Notes have been repaid in full;

          (vi) amounts (including such part of any termination payment) due to
               the Series 2 Class A2 Euro Currency Swap Provider under the
               Series 2

                                      47
<PAGE>

               Class A2 Euro Currency Swap (except for any termination payment
               or any part thereof due and payable to that Swap Provider as a
               result of a Euro Currency Swap Provider Default by that Swap
               Provider, save to the extent such termination payment may be
               satisfied by any Swap Replacement Payment received by the
               Current Issuer following a Downgrade Termination Event in
               respect of the Series 2 Class A2 Euro Currency Swap and applied
               in accordance with this order of priority of payments) and from
               the amounts received from the Series 2 Class A2 Euro Currency
               Swap Provider to pay interest due or overdue and to repay
               principal on the Series 2 Class A2 Notes until the Series 2
               Class A2 Notes have been repaid in full;

         (vii) interest due or overdue and to repay principal of the Series 3
               Class A1 Notes until the Series 3 Class A1 Notes have been
               repaid in full; and

        (viii) principal of the Series 3 Class A2 Notes until the Series 3
               Class A2 Notes have been repaid in full and (1) on any Payment
               Date up to and including the earlier of (a) the Payment Date in
               September 2011, (b) the occurrence of a Trigger Event or (c)
               the enforcement of the Funding Security and/or the Current
               Issuer Security, amounts (including such part of any
               termination payment) due to the Interest Rate Swap Provider
               under the Interest Rate Swap (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of an Interest Rate Swap Provider Default
               by that Swap Provider, save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Interest Rate Swap and
               applied in accordance with this order of priority of payments)
               and from the amounts received from the Interest Rate Swap
               Provider to pay interest due or overdue and (ii) thereafter,
               amounts (including such part of any termination payment) due to
               the Interest Rate Swap Provider under the Interest Rate Swap,
               to the extent not already paid (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of an Interest Rate Swap Provider Default
               by that Swap Provider, save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Interest Rate Swap and
               applied in accordance with this order of priority of payments)
               and to pay interest due or overdue on the Series 3 Class A2
               Notes to the holders of the Series 3 Class A2 Notes;

     (E)  fifth, in no order of priority among them but in proportion to the
          respective amounts due, to pay:

          (i)  amounts (including such part of any termination payment) due to
               the Series 1 Class B Dollar Currency Swap Provider under the
               Series 1 Class B Dollar Currency Swap (except for any
               termination payment due or any part thereof and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap

                                      48
<PAGE>

               Replacement Payment received by the Current Issuer following a
               Downgrade Termination Event in respect of the Series 1 Class B
               Dollar Currency Swap and applied in accordance with this order
               of priority of payments) and from amounts received from the
               Series 1 Class B Dollar Currency Swap Provider to pay interest
               due or overdue and to repay principal on the Series 1 Class B
               Notes until the Series 1 Class B Notes have been repaid in
               full;

          (ii) amounts (including such part of any termination payment) due to
               the Series 2 Class B Euro Currency Swap Provider under the
               Series 2 Class B Euro Currency Swap (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default
               by that Swap Provider save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class B Euro
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               2 Class B Euro Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 2 Class B Notes
               until the Series 2 Class B Notes have been repaid in full; and

         (iii) interest due or overdue and to repay principal of the Series 3
               Class B Notes until the Series 3 Class B Notes have been repaid
               in full;

     (F)  sixth, in no order of priority among them but in proportion to the
          respective amounts due, to pay:

          (i)  amounts (including such part of any termination payment) due to
               the Series 1 Class M Dollar Currency Swap Provider under the
               Series 1 Class M Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider, save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 1 Class M Dollar
               Currency Swap and applied in accordance with this order of
               priority of payment) and from amounts received from the Series
               1 Class M Dollar Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 1 Class M Notes
               until the Series 1 Class M Notes have been repaid in full;

          (ii) amounts (including such part of any termination payment) due to
               the Series 2 Class M Euro Currency Swap Provider under the
               Series 2 Class M Euro Currency Swap (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider default
               by that Swap Provider, save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class M Euro
               Currency Swap and applied in accordance with this order of
               priority of

                                      49
<PAGE>

               payments) and from amounts received from the Series 2 Class M
               Euro Currency Swap Provider to pay interest due or overdue and
               to repay principal of the Series 2 Class M Notes until the
               Series 2 Class M Notes have been repaid in full; and

         (iii) interest due or overdue and to repay principal of the Series 3
               Class M Notes until the Series 3 Class M Notes have been repaid
               in full;

     (G)  seventh, in no order of priority among them but in proportion to the
          respective amounts due, to pay:

          (i)  amounts (including such part of any termination payment) due to
               the Series 1 Class C Dollar Currency Swap Provider under the
               Series 1 Class C Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 1 Class C Dollar
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               1 Class C Dollar Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 1 Class C Notes
               until the Series 1 Class C Notes have been repaid in full;

          (ii) amounts (including such part of any termination payment) due to
               the Series 2 Class C Euro Currency Swap Provider under the
               Series 2 Class C Euro Currency Swap (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default
               by that Swap Provider save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class C Euro
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               2 Class C Euro Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 2 Class C Notes
               until the Series 2 Class C Notes have been repaid in full; and

         (iii) to pay interest due or overdue and to repay principal on the
               Series 3 Class C Notes until the Series 3 Class C Notes have
               been repaid in full;

     (H)  eighth, on the Payment Date falling in December of each year, to pay
          to the Current Issuer Account Bank an amount equal to the amount of
          any debit balance in any Current Issuer Transaction Account as
          permitted by the Current Issuer Account Bank and outstanding as at
          such Payment Date; and

     (I)  ninth, in no order of priority among them but in proportion to the
          respective amounts due, to pay any termination payment to:

                                      50
<PAGE>

          (i)  the Basis Rate Swap Provider following a Basis Rate Swap
               Provider Default by the Basis Rate Swap Provider;

          (ii) the Interest Rate Swap Provider following an Interest Rate Swap
               Provider Default by the Interest Rate Swap Provider;

         (iii) the Dollar Currency Swap Provider following a Dollar Currency
               Swap Provider Default by the Dollar Currency Swap Provider;

          (iv) the Euro Currency Swap Provider following a Euro Currency Swap
               Provider Default by the Euro Currency Swap Provider; and

     (J)  last, to pay any amount remaining following the application of
          principal and revenue set forth in paragraphs (A) through (I) above,
          to the Current Issuer.

     Following enforcement of the Current Issuer Security, if, on any Payment
     Date, an amount equal to the cash benefit relating to any Tax Credit
     obtained by the Current Issuer is required to be paid to any Current
     Issuer Swap Provider (in accordance with Part 5(r) of the Schedule to the
     relevant Current Issuer Swap Agreement), then the Note Trustee shall make
     such payment on such Payment Date out of amounts received or recovered in
     priority to the payments and provisions to be made on such Payment Date
     in accordance with the Current Issuer Post-Enforcement Priority of
     Payments. The amount of any such cash benefit paid to the relevant
     Current Issuer Swap Provider in accordance with this paragraph shall, to
     avoid double counting, be deducted from the amount to be paid to that
     Current Issuer Swap Provider under the relevant Current Issuer Swap
     Agreement in accordance with the Current Issuer Post-Enforcement Priority
     of Payments on the relevant Payment Date.

                                      51
<PAGE>

                                  SCHEDULE 3

                         FORM OF NOTICE OF ASSIGNMENT

To:      [Addressee(s)]

Granite Mortgages 04-3 plc - Assignment of rights under Current Issuer
Transaction Documents

                                                                           [o]

Dear Sirs,

Terms and expressions used in this letter are as defined in a deed of charge
(the "Current Issuer Deed of Charge") between Granite Mortgages 04-3 plc (the
"Current Issuer"), The Bank of New York (the "Note Trustee") and others dated
[o].

We hereby give notice to each addressee of this letter that by assignment(s)
under or pursuant to the Current Issuer Deed of Charge, the Current Issuer has
assigned absolutely, by way of security for the payment and performance of
certain obligations of the Current Issuer described in the Current Issuer Deed
of Charge (the "Current Issuer Secured Obligations"), to the Note Trustee all
its right, title, benefit and interest under the [Agreement(s)] (the "Current
Issuer Transaction Documents") [including its right, title interest and
benefit in relation to [describe property] and including, without limitation,
all rights to receive payment of any amounts which may become payable to the
Current Issuer thereunder, all payments received by the Current Issuer
thereunder, all rights to serve notices and/or make demands thereunder and/or
to take such steps as are required to cause payments to become due and payable
thereunder and all rights of action in respect of any breach thereof and all
rights to receive damages or obtain relief in respect thereof and the proceeds
of any of the foregoing, (hereinafter called "Relevant Current Issuer
Property").

In relation to any of the Relevant Current Issuer Property which may be
situated in Jersey at any time, we hereby give notice for the purpose of the
Security Interests (Jersey) Law 1983 to each addressee of this letter that
with the intention of creating a security interest in accordance with such law
in such property in favour of the Note Trustee for the payment and performance
of the Current Issuer Secured Obligations, the Current Issuer has assigned all
of its rights, title, benefit and interest, present and future, in, to and
under the Relevant Current Issuer Property to the Note Trustee.

By signing the enclosed copy of this notice you acknowledge and consent to the
assignments and agree that:

     (a)  from the date of this notice you are obliged to and you will pay all
          moneys which are or may become payable to the Current Issuer under
          the aforesaid agreements to or to the order of the Note Trustee; and

     (b)  you have not, at the date of this notice, received notice that any
          third party has or will have any right of interest whatsoever in the
          Relevant Current Issuer Property.

                                      52
<PAGE>

Notwithstanding the assignments made by the Current Issuer and referred to in
this notice, the Note Trustee hereby confirms and you further acknowledge
that:

     (a)  you may continue to make all payments becoming due to the Current
          Issuer in respect of the Relevant Current Issuer Property in the
          manner envisaged by the relevant Current Issuer Transaction
          Document(s); and

     (b)  the Current Issuer shall be entitled to exercise its rights, powers
          and discretions and perform its obligations in relation to the
          Relevant Current Issuer Property and under the Current Issuer
          Transaction Documents in accordance with the provisions of the
          Current Issuer Transaction Documents,

but only until such time as you receive notice from the Note Trustee to the
contrary or to the effect that the security created under the Current Issuer
Deed of Charge has become enforceable, in which event from receipt of such
notice you agree that you will pay all monies becoming due and payable to the
Current Issuer in respect of the Relevant Current Issuer Property in
accordance with any instructions received from the Note Trustee.

This letter is governed by, and shall be construed in accordance with, English
law, except that to the extent of any Relevant Current Issuer Property which
may be situated in Jersey at any time, it is governed by and shall be
construed in accordance with the laws of Jersey.

Please acknowledge receipt of this notice by executing and returning the copy
of this letter attached hereto.

Yours faithfully,

EXECUTED for and on behalf of    )

GRANITE MORTGAGES 04-3 PLC       )

by:                              )

Authorised Signatory

Name:

Title:

                                      53
<PAGE>

EXECUTED for and on behalf of          )

THE BANK OF NEW YORK                   )

by:                                    )

Authorised Signatory

Name:

Title:

We acknowledge receipt of the above notice and the terms of the assignment
created by you in respect of the Relevant Current Issuer Property.

In respect of the [Agreement]:

For and on behalf of                               )

[Party to Current Issuer Transaction Document]     )

by:                                                )

Authorised Signatory

Name:

Title:

                                      54

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