Document:

EXHIBIT 4.2

                                Dated [o] 2005

                               NORTHERN ROCK PLC
                   as Seller, Cash Manager and a Beneficiary

                        GRANITE FINANCE FUNDING LIMITED
                         as Funding and a Beneficiary

                                    - and -

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

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

                                 TENTH AMENDED
                             MORTGAGES TRUST DEED

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

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

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                                                   CONTENTS

Clause                                                                                                Page No.

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1.       Definitions and Construction........................................................................1

2.       Creation of Mortgages Trust.........................................................................2

3.       Conditions Precedent................................................................................3

4.       Consideration.......................................................................................4

5.       Increasing and Decreasing the Seller Share of the Trust Property....................................9

6.       Increasing the Funding Share and the Funding 2 Share of the Trust Property.........................10

7.       Initial Funding Share and Initial Seller Share.....................................................13

8.       Adjustment of Funding Share Percentage, Funding 2 Share Percentage and Seller Share Percentage.....14

9.       Minimum Seller Share...............................................................................28

10.      Distribution of Revenue Receipts...................................................................29

11.      Distribution of Principal Receipts.................................................................34

12.      Allocation of Losses...............................................................................39

13.      Overpayments.......................................................................................39

14.      Arrears............................................................................................40

15.      Ledgers............................................................................................40

16.      Fees and Expenses of the Mortgages Trustee.........................................................41

17.      Directions from Beneficiaries......................................................................41

18.      Early Termination of the Mortgages Trust...........................................................43

19.      AUdit of Mortgage Loans Constituting the Trust Property............................................43

20.      Transfers..........................................................................................44

21.      Representations and Covenants......................................................................44

22.      Power to Delegate..................................................................................46

23.      Power of Investment................................................................................46

24.      Other Provisions Regarding the Mortgages Trustee...................................................46

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25.      No Retirement of Mortgages Trustee.................................................................48

26.      Termination........................................................................................48

27.      Further Assurances.................................................................................48

28.      No Partnership or Agency...........................................................................48

29.      Calculations.......................................................................................48

30.      Confidentiality....................................................................................49

31.      Non Petition Covenant; Limited Recourse............................................................49

32.      Amendments and Waiver..............................................................................51

33.      Notices............................................................................................52

34.      Third Party Rights.................................................................................53

35.      Execution in Counterparts; severability............................................................53

36.      Governing Law and Submission to Jurisdiction.......................................................53

SCHEDULE 1 REPRESENTATIONS AND WARRANTIES...................................................................55

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THIS TENTH AMENDED MORTGAGES TRUST DEED DATED [o] 2005 FURTHER AMENDS AND
RESTATES THE MORTGAGES TRUST DEED DATED 26 MARCH 2001 BETWEEN:

(1)   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 Seller, in its capacity as Cash Manager and in its capacity
      as a Beneficiary;

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

(3)   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.

WHEREAS:

(A)   The Mortgages Trustee wishes to declare the following trusts in respect
      of the Trust Property (being on 26 March, 2001, the sum of (GBP)100
      which monies have been received by and are presently held by the
      Mortgages Trustee or to its order).

(B)   The Mortgages Trustee (acting as principal and not as agent of any
      party) has agreed to hold the Trust Property as bare trustee for the
      Beneficiaries upon, with and subject to the trusts, powers and
      provisions of this Deed. The Mortgages Trustee will receive amounts
      arising from the Trust Property and will distribute such amounts for the
      benefit of the Beneficiaries of the Mortgages Trust. It will delegate
      certain tasks in relation to the Mortgages Trust to the Administrator
      and the Cash Manager.

(C)   The Seller carries on the business of, inter alia, originating
      residential mortgage loans to individual Borrowers in England, Wales and
      Scotland and of managing and administering such mortgage loans. The
      Seller intends to sell and assign from time to time portfolios of such
      mortgage loans to the Mortgages Trustee pursuant to the Mortgage Sale
      Agreement entered into on or about 26 March 2001 (as the same have been
      and may be amended, varied or supplemented from time to time), which
      mortgage loans shall be held by the Mortgages Trustee as bare trustee
      for the Beneficiaries upon, with and subject to the trusts, powers and
      provisions of this Deed.

NOW THIS DEED WITNESSES:

1.    Definitions and Construction

1.1   The provisions of the Programme Master Definitions Schedule signed for
      identification purposes by Sidley Austin Brown & Wood and Allen & Overy
      LLP on [o] 2005 (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.

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2.    Creation of Mortgages Trust

2.1   Initial Trust Property

      The Mortgages Trustee hereby declares itself as trustee of the Trust
      Property, being, upon execution of this Deed, the sum of (GBP)100 (one
      hundred pounds) (the "Initial Trust Property") which sum shall be held
      on trust by the Mortgages Trustee absolutely as to both capital and
      income for the benefit, as tenants in common (holding undivided
      beneficial interests), of the Seller as to the Initial Seller Share
      Percentage and Funding as to the Initial Funding Share Percentage. The
      Initial Trust Property shall be held by the Mortgages Trustee on the
      Mortgages Trust upon due execution of this Deed by all parties to it.

2.2   Closing Trust Property

      Pursuant to the provisions of the Mortgage Sale Agreement, the Seller
      intends to sell and assign the Initial Mortgage Portfolio to the
      Mortgages Trustee on the Initial Closing Date, which Initial Mortgage
      Portfolio including all related rights and benefits shall form part of
      the Trust Property (the "Closing Trust Property").

2.3   New Trust Property

      From time to time and pursuant to the Mortgage Sale Agreement, the
      Seller intends to sell and assign New Mortgage Portfolios to the
      Mortgages Trustee, which New Mortgage Portfolios including all related
      rights and benefits shall form part of the Trust Property (the "New
      Trust Property").

2.4   Other Trust Property

      (A)   In accordance with this Deed, from time to time Funding, the
            Seller and (upon the acquisition by Funding 2 from the Seller of
            part of the Seller Share in accordance with the Seller Share
            Assignment Agreement) Funding 2 shall, subject to and in
            accordance with Clause 4 (Consideration), Clause 5 (Increasing and
            Decreasing the Seller Share of the Trust Property) and/or Clause 6
            (Increasing the Funding Share and the Funding 2 Share of the Trust
            Property) provide consideration to the Mortgages Trustee in the
            form of Contributions to be applied by the Mortgages Trustee as
            set out in this Deed. Any Contribution so provided to the
            Mortgages Trustee shall, on receipt by the Mortgages Trustee and
            until it has been applied by the Mortgages Trustee in accordance
            with the terms of this Deed, form part of the Trust Property. [To
            consider status of Funding 2 Contributions]

      (B)   Any Re-draws made under a Flexible Mortgage Loan which is included
            in the Trust Property will also form part of the Trust Property.

      (C)   [Amounts on deposit (and interest earned on such amounts) from
            time to time in the Mortgages Trustee Bank Accounts will also form
            part of the Trust Property.]

      (D)   (If the Seller subsequently decides not to repurchase any Mortgage
            Loan (which is the subject of a Further Advance) within the Trust
            Property and/or to sell and assign the Further Advance to the
            Mortgages Trustee in accordance

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            with the Mortgage Sale Agreement) any Further Advance made in
            respect of a Mortgage Loan in the Trust Property will also form
            part of the Trust Property.

      (E)   Any Permitted Replacement Mortgage Loan and its Related Security
            (including the rights under any related MIG Policy and other
            insurance policies arranged by the Seller, but excluding any Early
            Repayment Charge Receipts paid to the Seller) relating to a
            Permitted Product Switch effected in relation to a Mortgage Loan
            which forms part of the Trust Property will also form part of the
            Trust Property.

      (F)   The proceeds of sale of any Mortgage Loan and its Related Security
            forming part of the Trust Property pursuant to the Mortgage Sale
            Agreement or other proceeds of sale of any Trust Property will
            also form part of the Trust Property.

      (G)   Any Further Draws under a Personal Secured Loan which is included
            in the Trust Property will also form part of the Trust Property.

2.5   Payments of Early Repayment Charges

            Subject to and in accordance with the Mortgage Sale Agreement, the
            Mortgages Trustee will agree to pay to the Seller any Early
            Repayment Charge Receipts received by the Mortgages Trustee in
            respect of any Mortgage Loan included in the Initial Mortgage
            Portfolio or any New Mortgage Portfolio which the Seller sells and
            assigns to the Mortgages Trustee. Upon any such payment to the
            Seller, the benefit of such Early Repayment Charges will no longer
            form part of the Trust Property.

3.    Conditions Precedent

3.1   Trust Property

      Subject to this Clause 3 (Conditions Precedent), the Mortgages Trustee
      shall hold the Trust Property as to both capital and income on trust
      absolutely for Funding, Funding 2 and for the Seller as tenants in
      common upon, with and subject to all the trusts, powers and provisions
      of this Deed (such that each Beneficiary shall have an undivided
      beneficial interest in the Trust Property). As used herein, "Trust
      Property" means the Initial Trust Property, the Closing Trust Property,
      any New Trust Property (but excludes any Early Repayment Charge Receipts
      which have been paid to the Seller and any Mortgage Loans which have
      been purchased or repurchased (as applicable) by the Seller pursuant to
      the Mortgage Sale Agreement) and all other Trust Property referred to
      under Clause 2 (Creation of Mortgages Trust) less (a) any actual Losses
      in relation to Mortgage Loans and any actual redemptions occurring in
      respect of the Mortgage Loans as described in Clause 8.5 (Adjustments to
      Trust Property) and (b) distributions of principal made from time to
      time to the Beneficiaries.

3.2   Closing Trust Property

      The Closing Trust Property shall be held by the Mortgages Trustee on the
      Mortgages Trust subject to satisfaction of the following conditions
      precedent:

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      (A)   the due execution and delivery of the Mortgage Sale Agreement by
            all parties to it;

      (B)   the due execution and delivery of this Deed by all parties to it;

      (C)   the satisfaction or waiver in accordance with the terms of the
            Mortgage Sale Agreement of the conditions to the sale and
            assignment of the Initial Mortgage Portfolio as set out in Clause
            2 (Sale and Purchase of Initial Mortgage Portfolio) and Clause 3
            (Initial Closing Date) of the Mortgage Sale Agreement;

      (D)   the payment by Funding to the Mortgages Trustee of Funding's
            Initial Contribution for the Initial Funding Share Percentage in
            accordance with Clause 4 (Consideration); and

      (E)   the payment by the Mortgages Trustee to the Seller of the Initial
            Purchase Price for the sale and assignment to the Mortgages
            Trustee of the Initial Mortgage Portfolio.

3.3   New Trust Property

      Any New Trust Property shall be held by the Mortgages Trustee on the
      Mortgages Trust subject to the satisfaction or waiver, in accordance
      with the terms of the Mortgage Sale Agreement, of the conditions
      referred to in Clause 4 (Sale and Purchase of New Mortgage Loan
      Portfolios) of the Mortgage Sale Agreement for the transfer of New
      Mortgage Loan Portfolios to the Mortgages Trustee.

3.4   Funding 2 Share

      The requirement for the Mortgages Trustee to hold the Trust Property on
      trust for Funding 2 shall be subject to and conditional upon the
      acquisition by Funding 2 from the Seller of part of the Seller Share in
      accordance with the terms of the Seller Share Assignment Agreement.

4.    Consideration

4.1   Consideration provided by Seller

      The Seller in its capacity as a Beneficiary shall provide consideration
      to the Mortgages Trustee for the Seller Share in the Trust Property:

      (A)   on the Initial Closing Date, by selling and assigning to the
            Mortgages Trustee the Initial Mortgage Portfolio upon payment by
            the Mortgages Trustee to the Seller of the Initial Purchase Price
            for the Initial Mortgage Portfolio in accordance with the terms of
            the Mortgage Sale Agreement;

      (B)   on each date after the Initial Closing Date on which (i) New
            Mortgage Loans are acquired by the Mortgages Trustee from the
            Seller in accordance with the Mortgage Sale Agreement and (ii) the
            consideration provided to the Seller for that sale is or includes
            the covenant of the Mortgages Trustee to hold the Trust Property
            on trust for Funding, the Seller and, upon the acquisition by
            Funding 2 from the Seller of part of the Seller Share in
            accordance with the terms of the

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            Seller Share Assignment Agreement, Funding 2, in accordance with
            the terms of this Deed, by the sale on such date by the Seller of
            such New Mortgage Loans either for the payment by the Mortgages
            Trustee of the Initial Purchase Price paid on such date or (if no
            Initial Purchase Price is paid) without payment on such date; and

      (C)   on each date on which the Seller increases the Seller Share of the
            Trust Property in accordance with Clause 5 (Increasing and
            Decreasing the Seller Share of the Trust Property) below, the
            Seller will pay the consideration to the Mortgages Trustee
            specified in that Clause.

4.2   Consideration provided by Funding

      Funding in its capacity as a Beneficiary shall provide consideration to
      the Mortgages Trustee for the Funding Share of the Trust Property:

      (A)   on the Initial Closing Date, by paying to the Mortgages Trustee
            the Initial Contribution in respect of the Closing Trust Property
            which shall be equal to (and from which the Mortgages Trustee
            shall or shall procure that the Cash Manager on its behalf shall
            pay) the Initial Purchase Price in respect of the Initial Mortgage
            Portfolio payable by the Mortgages Trustee to the Seller pursuant
            to the Mortgage Sale Agreement on such date;

      (B)   on each Distribution Date, by paying to the Mortgages Trustee a
            Deferred Contribution equal to the amount (if any) of:

            (1)   Mortgages Trustee Available Revenue Receipts to which
                  Funding is entitled on such date in accordance with
                  paragraph (D)(i) of Clause 10.2 (Distribution of Mortgages
                  Trustee Available Revenue Receipts); and

            (2)   the Funding Proportion of the amount of any Early Repayment
                  Charge Receipts payable by the Mortgage Trustee to the
                  Seller under the Mortgage Sale Agreement.

            The amounts listed under sub-clauses (B)(1) and (B)(2) are,
            together, referred to as the "Funding Relevant Distribution". The
            Funding Relevant Distribution and the Funding 2 Relevant
            Distribution (as defined in Clause 4.3(A) below) are calculated as
            at such Distribution Date, shall be equal to (and from which the
            Mortgages Trustee shall or shall procure that the Cash Manager on
            its behalf shall pay) such amount of Deferred Purchase Price as is
            payable by the Mortgages Trustee to the Seller pursuant to the
            Mortgage Sale Agreement on such date. The parties to this Deed
            agree that on any Distribution Date, the Funding Relevant
            Distribution and the Deferred Contribution payable by Funding (as
            calculated pursuant to this sub-clause (B)) to the Mortgages
            Trustee shall be set off against each other such that, as between
            the Mortgages Trustee and Funding, no amount shall be payable in
            respect of such Funding Relevant Distribution or such Deferred
            Contribution on such date and the Cash Manager on behalf of the
            Mortgages Trustee shall pay to the Seller (in satisfaction (in
            part) of the Mortgages Trustee's obligation to pay Deferred
            Purchase Price to the Seller under the Mortgage Sale

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            Agreement) those funds which, were it not for such set off, would
            have been payable to Funding as the Funding Relevant Distribution;

      (C)   on each date after the Initial Closing Date on which (i) an amount
            of the Initial Purchase Price is payable in respect of New
            Mortgage Loans which are sold and assigned by the Seller to the
            Mortgages Trustee on such date and (ii) Funding receives the net
            proceeds of a Funding Intercompany Loan from a Funding Issuer, by
            paying to the Mortgages Trustee an Initial Contribution in respect
            of the Funding Share of the Trust Property which shall be equal to
            (and from which the Mortgages Trustee shall or shall procure that
            the Cash Manager on its behalf shall pay) the Initial Purchase
            Price in respect of such New Mortgage Loans payable by the
            Mortgages Trustee to the Seller pursuant to the Mortgage Sale
            Agreement on such date unless, in either case, Funding has given
            notice to each relevant Funding Issuer of its intention to use the
            proceeds of a Funding Intercompany Loan to repay one or more of
            the Funding Intercompany Loans from such Funding Issuers, and
            subject to Clause 6 (Increasing the Funding Share and the Funding
            2 Share of the Trust Property) below;

      (D)   on each other date after the Initial Closing Date on which Funding
            receives the net proceeds of a Funding Intercompany Loan from a
            Funding Issuer, by paying to the Mortgages Trustee a Further
            Contribution in respect of the Funding Share of the Trust Property
            which shall be equal to (and from which the Mortgages Trustee
            shall or shall procure that the Cash Manager on its behalf shall
            pay) the Special Distribution payable to the Seller in accordance
            with Clause 4.4 (Application by Mortgages Trustee) unless Funding
            has given notice to each relevant Funding Issuer of its intention
            to use the proceeds of a Funding Intercompany Loan to repay one or
            more of the Funding Intercompany Loans from such Funding Issuers
            subject to Clause 6 (Increasing the Funding Share and the Funding
            2 Share of the Trust Property) below; and

      (E)   following the Final Repayment Date of the latest maturing Funding
            Intercompany Loan made by any Funding Issuer to Funding and
            provided that there are no further claims outstanding under any
            Funding Intercompany Loan or on such earlier date provided that
            all Funding Intercompany Loans have either been repaid in full or
            there are no further claims outstanding under any Funding
            Intercompany Loan, Funding will make a final payment of Deferred
            Contribution to the Mortgages Trustee (the "Funding Final Deferred
            Contribution") in an amount equal to the aggregate amount standing
            to the credit of the Funding Bank Accounts (including any account
            established for the purposes of the Issuer Reserve Fund and/or the
            Issuer Liquidity Reserve Fund of any Funding Issuer) after making
            any payments ranking in priority thereto, subject to and in
            accordance with the relevant Funding Priority of Payments. The
            Funding Final Deferred Contribution shall be in an amount equal to
            (and from the Funding Final Deferred Contribution the Mortgages
            Trustee shall or shall procure that the Cash Manager shall on its
            behalf pay) an amount of Deferred Purchase Price payable by the
            Mortgages Trustee to the Seller pursuant to and in accordance with
            the Mortgage Sale Agreement.

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4.3   Consideration provided by Funding 2

      Funding 2 in its capacity as a Beneficiary shall provide consideration
      to the Mortgages Trustee for the Funding 2 Share of the Trust Property:

      (A)   on each Distribution Date, by paying to the Mortgages Trustee a
            Deferred Contribution equal to the amount (if any) of:

            (1)   Mortgages Trustee Available Revenue Receipts to which
                  Funding 2 is entitled on such date in accordance with
                  paragraph (D)(ii) of Clause 10.2 (Distribution of Mortgages
                  Trustee Available Revenue Receipts); and

            (2)   the Funding 2 Proportion of the amount of any Early
                  Repayment Charge Receipts payable by the Mortgage Trustee to
                  the Seller under the Mortgage Sale Agreement.

            The amounts listed under sub-clauses (A)(1) and (A)(2) are,
            together, referred to as the "Funding 2 Relevant Distribution".
            Together with the Funding Relevant Distribution, the Funding 2
            Relevant Distribution shall be applied in accordance with Clause
            4.2(B). The parties to this Deed agree that on any Distribution
            Date, the Funding 2 Relevant Distribution and the Deferred
            Contribution payable by Funding 2 (as calculated pursuant to this
            sub-clause (A)) to the Mortgages Trustee shall be set off against
            each other such that, as between the Mortgages Trustee and Funding
            2, no amount shall be payable in respect of such Funding 2
            Relevant Distribution or such Deferred Contribution on such date
            and the Cash Manager on behalf of the Mortgages Trustee shall pay
            to the Seller (in satisfaction (in part) of the Mortgages
            Trustee's obligation to pay Deferred Purchase Price to the Seller
            under the Mortgage Sale Agreement) those funds which, were it not
            for such set-off, would have been payable to Funding 2 as the
            Funding 2 Relevant Distribution;

      (B)   on each date after the Funding Programme Date on which (i) an
            amount of Initial Purchase Price is payable in respect of New
            Mortgage Loans which are sold and assigned by the Seller to the
            Mortgages Trustee on such date and (ii) Funding 2 receives the net
            proceeds of a Loan Tranche under the Global Intercompany Loan, by
            paying to the Mortgages Trustee an Initial Contribution in respect
            of the Funding 2 Share of the Trust Property which shall be equal
            to (and from which the Mortgages Trustee shall or shall procure
            that the Cash Manager on its behalf shall pay) the Initial
            Purchase Price in respect of such New Mortgage Loans payable by
            the Mortgages Trustee to the Seller pursuant to the Mortgage Sale
            Agreement on such date unless Funding 2 has given notice to the
            Funding 2 Issuer of its intention to use the proceeds of a Loan
            Tranche under the Global Intercompany Loan to repay (in part or in
            full) one or more of the Loan Tranches under the Global
            Intercompany Loan from the Funding 2 Issuer and subject to Clause
            6 (Increasing the Funding Share and the Funding 2 Share of the
            Trust Property) below;

      (C)   on each other date after the Funding Programme Date on which
            Funding 2 receives the net proceeds of a Loan Tranche from the
            Funding 2 Issuer, by paying to the Mortgages Trustee a Further
            Contribution in respect of the

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            Funding 2 Share of the Trust Property which shall be equal to (and
            from which the Mortgages Trustee shall or shall procure that the
            Cash Manager on its behalf shall pay):

            (1)   the Special Distribution payable to the Seller in accordance
                  with Clause 4.4 (Application by Mortgages Trustee); and/or

            (2)   the Special Distribution payable to Funding in accordance
                  with Clause 4.4 (Application by Mortgages Trustee),

            unless Funding 2 has given notice to the Funding 2 Issuer of its
            intention to use the proceeds of a Loan Tranche to repay (in part
            or in full) one or more of the Loan Tranches each relating to a
            series and class of notes of the Funding 2 Issuer being refinanced
            and subject to Clause 6 (Increasing the Funding Share and the
            Funding 2 Share of the Trust Property) below.

      (D)   following the Final Repayment Date of the latest Maturing Funding
            2 Intercompany Loan made by any Funding 2 Issuer to Funding 2 and
            provided that there are no further claims outstanding under any
            Funding 2 Intercompany Loan or on such earlier date provided that
            all Funding 2 Intercompany Loans have either been repaid in full
            or there are no further claims outstanding under any Funding 2
            Intercompany Loan, Funding 2 will make a final payment of Deferred
            Contribution to the Mortgages Trustee (the "Funding 2 Final
            Deferred Contribution") in an amount equal to the aggregate amount
            standing to the credit of the Funding 2 Bank Accounts after making
            any payments ranking in priority thereto, subject to and in
            accordance with the relevant Funding 2 Priority of Payments. The
            Funding 2 Final Deferred Contribution shall be in an amount equal
            to (and from the Funding 2 Final Deferred Contribution the
            Mortgages Trustee shall or shall procure that the Cash Manager
            shall on its behalf pay) an amount of Deferred Purchase Price
            payable by the Mortgages Trustee to the Seller pursuant to and in
            accordance with the Mortgage Sale Agreement.

      Funding 2 shall pay or shall procure the payment of the amount of any
      Initial Contribution or Further Contribution to be made by it to the
      Mortgages Trustee into the Mortgages Trustee Transaction Account.

4.4   Application by Mortgages Trustee

      (A)   If the Mortgages Trustee receives any Initial Contribution,
            Deferred Contribution or the Final Deferred Contribution from a
            Funding Beneficiary, the parties hereto direct the Mortgages
            Trustee to, and the Mortgages Trustee covenants that it shall, or
            shall procure that the Cash Manager on its behalf shall, pay such
            funds to the Seller in satisfaction of the Mortgages Trustee's
            obligation to make payment of the Initial Purchase Price or, as
            the case may be, Deferred Purchase Price in respect of the Initial
            Mortgage Portfolio or any New Mortgage Loans which are sold and
            assigned to the Mortgages Trustee by the Seller pursuant to the
            Mortgage Sale Agreement.

      (B)   If the Mortgages Trustee receives a Further Contribution from any
            Beneficiary, the parties hereto direct the Mortgages Trustee to,
            and the

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            Mortgages Trustee covenants that it shall, or shall procure that
            the Cash Manager on its behalf shall:

            (1)   where such Further Contribution is made by Funding 2:

                  (a)   if Funding 2 so elects, in its sole discretion, pay
                        all or part of such Further Contribution as a Special
                        Distribution to Funding in accordance with the terms
                        of this Deed provided that the amounts of such Special
                        Distribution shall not exceed the aggregate
                        outstanding principal balance of all Funding
                        Intercompany Loans, and

                  (b)   if Funding 2 so elects, pay all or part of such
                        Further Contribution as a Special Distribution to the
                        Seller in accordance with the terms of this Deed;

            (2)   where such Further Contribution is made by Funding, pay such
                  funds as a Special Distribution to the Seller in accordance
                  with the terms of this Deed; and

            (3)   where such Further Contribution is made by the Seller, pay
                  such funds in accordance with the terms of this Deed.

5.    Increasing and Decreasing the Seller Share of the Trust Property

5.1   Re-draws under Flexible Mortgage Loans

      (A)   If, in respect of any Flexible Mortgage Loan which is in the Trust
            Property, the relevant Borrower requests a Cash Re-draw and the
            Administrator (on behalf of the Seller) grants such request
            pursuant to and in accordance with the terms of the Administration
            Agreement, the Seller as Beneficiary shall fund that Cash Re-draw
            in the Mortgages Trust by making payment to the Borrower, in
            accordance with the terms and conditions of the relevant Mortgage
            Loan, of the Cash Re-draw Amount. Upon payment by the Seller to
            the relevant Borrower of the Cash Re-draw Amount, the aggregate
            Current Balance of the Mortgage Loans constituting the Trust
            Property and the amount of the Seller Share of the Trust Property
            shall be increased by an amount equal to the Cash Re-draw Amount.

      (B)   If, in respect of any Flexible Mortgage Loan which is in the Trust
            Property, the relevant Borrower requests a Non-Cash Re-draw and
            the Administrator grants such request or the Administrator
            otherwise permits the relevant Borrower to take a Non-Cash Re-draw
            pursuant to and in accordance with the terms of the Administration
            Agreement, the Seller as Beneficiary shall fund such Non-Cash
            Re-draw in the Mortgages Trust by making payment to the Mortgages
            Trustee of a Further Contribution in an amount equal to the Unpaid
            Interest Amount in respect of such Non-Cash Re-draw. Upon payment
            by the Seller to the Mortgages Trustee of such Further
            Contribution, the aggregate Current Balance of the Mortgage Loans
            constituting the Trust Property and the Seller Share of the Trust
            Property shall be increased by an amount equal to the

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            amount of the Further Contribution so made to the Mortgages
            Trustee. The parties agree that any such Further Contribution
            received by the Mortgages Trustee from the Seller will be treated
            as Revenue Receipts and will be distributed to the Beneficiaries
            on the immediately succeeding Distribution Date in accordance with
            Clause 10 (Distribution of Revenue Receipts) below.

5.2   Further Advances

      If at a future date the Seller elects not to purchase any Mortgage Loan
      which becomes the subject of a Further Advance from the Mortgages
      Trustee, the Seller will be solely responsible for funding any such
      Further Advance and, subject to the provisions of this Deed, upon the
      making of such Further Advance by the Seller, the aggregate Current
      Balance of the Mortgage Loans constituting the Trust Property and the
      Seller Share of the Trust Property shall be increased by an amount equal
      to the amount of the Further Advance paid to the relevant Borrower.

5.3   Together Connections Mortgage Loans and Connections Mortgage Loans

      If, in respect of any Together Connections Mortgage Loan or any
      Connections Mortgage Loan which is in the Trust Property, there has been
      a reduction in the outstanding balance of such Mortgage Loan from the
      relevant Borrower being allocated a portion of the Together Connections
      Mortgage Benefit or Connections Benefit (as the case may be) under such
      Mortgage Loan, the aggregate Current Balance of the Mortgage Loans
      constituting the Trust Property and the amount of the Seller Share of
      the Trust Property shall be decreased by an amount equal to the portion
      of the Together Connections Benefit or Connections Benefit (as the case
      may be) allocated to such Mortgage Loan.

5.4   Further Draws under Personal Secured Loans

      If, in respect of any Personal Secured Loan in the Trust Property which
      permits Further Draws, the relevant Borrower requests a Further Draw and
      the Administrator grants such request, the Seller will as Beneficiary
      fund such Further Draw in the Mortgages Trust by making payment to the
      Borrower of the Further Draw in accordance with the terms and conditions
      of the relevant Personal Secured Loan. Upon payment by the Seller to the
      relevant Borrower of such Further Draw, the aggregate Current Balance of
      the Mortgage Loans constituting the Trust Property and the amount of the
      Seller Share of the Trust Property shall be increased by an amount equal
      to the amount of the Further Draw paid to the relevant Borrower.

6.    Increasing the Funding Share and the Funding 2 Share of the Trust Property

6.1   Conditions precedent to the increase of the Funding Share

      Subject as provided below, Funding may increase the Funding Share (as
      defined in Clause 7.1 (Initial Funding Share) below) of the Trust
      Property, subject to satisfaction of the following conditions precedent:

      (A)   no Funding Event of Default under the Transaction Documents shall
            have occurred which is continuing at the relevant date;

                                      10
<PAGE>

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

      (C)   the Rating Agencies have confirmed in writing to the Mortgages
            Trustee, the Security Trustee, the Funding 2 Security Trustee and
            each Issuer that the proposed increase in the Funding Share of the
            Trust Property would not cause the then-current ratings by the
            Rating Agencies (or any of them) of the existing Notes of any
            Issuer to be reduced, withdrawn or qualified;

      (D)   the New Notes have been issued by a Funding Issuer, the
            subscription proceeds received on behalf of such Funding Issuer
            and advanced by such Funding Issuer to Funding pursuant to a
            Funding Intercompany Loan Agreement (which proceeds Funding will
            pay to the Mortgages Trustee to increase the Funding Share of the
            Trust Property on the relevant date in accordance with Clause 6.3
            (Completion));

      (E)   if necessary, each Funding Issuer, including any New Funding
            Issuer (if any) has entered into appropriate hedging arrangements;

      (F)   as of the last day of the immediately preceding Trust Calculation
            Period the aggregate Current Balance of Mortgage Loans in the
            Trust Property which were at such time in arrears for at least 3
            months is less than 4 per cent. of the aggregate Current Balance
            of all Mortgage Loans in the Trust Property at such time unless
            the Rating Agencies have confirmed that the then-current ratings
            of the Notes of each Funding Issuer will not be adversely
            affected;

      (G)   as of the last day of the immediately preceding Trust Calculation
            Period the weighted average LTV ratio of Mortgage Loans in the
            Trust Property (after application of the LTV Test) on such date
            does not exceed the LTV ratio (based on the LTV Test) of Mortgage
            Loans in the Trust Property on the Initial Closing Date plus 0.25
            per cent.;

      (H)   in respect of each Funding Issuer, each Issuer Reserve Fund is
            fully funded on the relevant date up to the relevant Issuer
            Reserve Required Amount; and

      (I)   as at the most recent Payment Date no deficiency was recorded on
            the Issuer Principal Deficiency Ledger of any Funding Issuer,

      provided always that Funding shall not be entitled to increase the
      Funding Share after the Payment Date falling in January 2008 if the
      option to redeem the First Issuer Notes on the Payment Date in January
      2008 pursuant Condition 5 of the First Issuer Notes is not exercised.

6.2   Conditions precedent to the increase of the Funding 2 Share

      Subject as provided below, Funding 2 may increase the Funding 2 Share of
      the Trust Property, subject to satisfaction of the following conditions
      precedent:

      (A)   no Funding 2 Event of Default under the Transaction Documents
            shall have occurred which is continuing at the relevant date;

                                      11
<PAGE>

      (B)   no Intercompany Loan Enforcement Notice has been served in respect
            of any Funding 2 Intercompany Loan;

      (C)   the Rating Agencies have confirmed in writing to the Mortgages
            Trustee, the Security Trustee, the Funding 2 Security Trustee and
            each Funding 2 Issuer that the proposed increase in the Funding 2
            Share of the Trust Property would not cause the then-current
            ratings by the Rating Agencies (or any of them) of the existing
            Notes of any Issuer to be reduced, withdrawn or qualified;

      (D)   the New Notes have been issued by the Funding 2 Issuer, the
            subscription proceeds received on behalf of the Funding 2 Issuer
            and advanced by the Funding 2 Issuer to Funding 2 pursuant to a
            Funding 2 Intercompany Loan Agreement (which proceeds Funding 2
            will pay to the Mortgages Trustee to increase the Funding 2 Share
            of the Trust Property on the relevant date in accordance with
            Clause 6.3 (Completion));

      (E)   if necessary, Funding 2 and/or the Funding 2 Issuer have entered
            into appropriate hedging arrangements;

      (F)   as of the last day of the immediately preceding Trust Calculation
            Period the aggregate Current Balance of Mortgage Loans in the
            Trust Property which were at such time in arrears for at least 3
            months is less than 4 per cent. of the aggregate Current Balance
            of all Mortgage Loans in the Trust Property at such time unless
            the Rating Agencies have confirmed that the then-current ratings
            of the existing Notes of the Funding 2 Issuer will not be
            adversely affected;

      (G)   as of the last day of the immediately preceding Trust Calculation
            Period the weighted average LTV ratio of Mortgage Loans in the
            Trust Property (after application of the LTV Test) on such date
            does not exceed the LTV ratio (based on the LTV Test) of Mortgage
            Loans in the Trust Property on the Initial Closing Date plus 0.25
            per cent.; and

      (H)   as at the most recent Payment Date no deficiency was recorded on
            the Funding 2 Principal Deficiency Ledger,

      provided always that Funding 2 shall not be entitled to increase the
      Funding 2 Share of the Trust Property after the date falling 12 months
      after the occurrence of a Step-Up Date in respect of any Series and
      Class of Notes of a Funding 2 Issuer, if the option to redeem such Notes
      by such date pursuant to the terms and conditions of such Notes is not
      exercised.

6.3   Completion

      Subject to satisfaction of the conditions precedent set out in Clause
      6.1 (Conditions precedent to the Increase of the Funding Share) or
      Clause 6.2 (Conditions precedent to the Increase of the Funding 2 Share)
      above, Funding or Funding 2, as applicable, shall pay to the Mortgages
      Trustee the consideration for such increase in the Funding Share or the
      Funding 2 Share, as applicable, in accordance with Clause 4
      (Consideration).

                                      12
<PAGE>

6.4   Distribution

      The parties hereto agree that any Principal Receipts received by the
      Mortgages Trustee from a Funding Beneficiary in payment of an Initial
      Contribution or a Further Contribution in accordance with Clause 4
      (Consideration) on any date on which such Funding Beneficiary increases
      its respective Share of the Trust Property shall be allocable and
      payable by the Mortgages Trustee to:

      (A)   the Seller (in its capacity as a Beneficiary of the Mortgages
            Trust) as Initial Purchase Price or as a Special Distribution;
            and/or

      (B)   Funding (in its capacity as a Beneficiary of the Mortgages Trust)
            as a Special Distribution (in respect of Further Contributions
            made by Funding 2),

      in each case, on such date whether or not such date is a Distribution
      Date. Any such Initial Purchase Price or Special Distribution shall
      reduce the Seller Share or the Funding Share of the Trust Property (as
      applicable) by the amount of such Initial Purchase Price or Special
      Distribution.

7.    Initial Funding Share and Initial Seller Share

7.1   Initial Funding Share

      The "Initial Funding Share" of the Trust Property shall be (GBP)86.61 at
      26 March, 2001 and (GBP)1,500,000,000 at the Initial Closing Date and
      the "Initial Funding Share Percentage" shall be the Initial Funding
      Share expressed as a percentage of the Trust Property at such date, that
      is to say, 86.61 per cent. References herein to the "Funding Share"
      shall mean, prior to the first Distribution Date, the Initial Funding
      Share and thereafter shall mean the Current Funding Share (as defined
      below).

7.2   Initial Seller Share

      The "Initial Seller Share" of the Trust Property shall be the sum which
      remains of the Trust Property after deduction of the Initial Funding
      Share. The Initial Seller Share of the Trust Property will be (GBP)13.39
      at 26 March, 2001 and (GBP)232,000,000 at the Initial Closing Date and
      the "Initial Seller Share Percentage" shall be equal to 100 per cent.
      minus the Initial Funding Share Percentage, that is to say, 13.39 per
      cent. The amount of the Initial Seller Share and the Initial Seller
      Share Percentage on the Initial Closing Date will be determined
      immediately after the Initial Closing Date. References herein to the
      "Seller Share" shall mean, prior to the first Distribution Date, the
      Initial Seller Share and thereafter shall mean the Current Seller Share
      (as defined below).

7.3   Initial Funding 2 Share

      The "Initial Funding 2 Share" of the Trust Property shall, following the
      sale and assignment by the Seller of part of the Seller Share of the
      Trust Property to Funding 2 in accordance with the Seller Share
      Assignment Agreement, be (GBP)100. References herein to the "Funding 2
      Share" shall, from (and including) the Funding 2 Programme Date to (but
      excluding) the first Closing Date in relation to the issue of Notes by a
      Funding 2 Issuer, mean the Initial Funding 2 Share and thereafter shall
      mean the Current Funding 2 Share.

                                      13
<PAGE>

7.4   Rounding of percentage shares

      Except for the Initial Closing Date on which the Funding Share
      Percentage and the Seller Share Percentage shall be calculated to two
      decimal places, and unless otherwise agreed by the Beneficiaries, the
      Current Funding Share Percentage, the Current Funding 2 Share Percentage
      and the Current Seller Share Percentage shall be calculated to five
      decimal places.

8.    Adjustment of Funding Share Percentage, Funding 2 Share Percentage and
      Seller Share Percentage

8.1   Effective Periods

      (A)   Subject to Clause 8.1(B) below, the Cash Manager will (on behalf
            of the Mortgages Trustee and the Beneficiaries) recalculate the
            Funding Share, the Funding Share Percentage, the Funding 2 Share,
            the Funding 2 Share Percentage, the Seller Share and the Seller
            Share Percentage in respect of each Trust Calculation Period on
            the Distribution Date occurring in such Trust Calculation Period,
            based on the aggregate Current Balance of the Mortgage Loans
            constituting the Trust Property (as adjusted from time to time) on
            the last day of the Trust Calculation Period immediately preceding
            such Distribution Date.

      (B)   Notwithstanding Clause 8.1(A) above, if during any Trust
            Calculation Period the Seller sells and assigns New Mortgage Loans
            to the Mortgages Trustee or if a Funding Beneficiary makes a
            Contribution (excluding any Deferred Contribution) to the
            Mortgages Trustee to increase its respective share of the Trust
            Property, the recalculation of the Funding Share, the Funding
            Share Percentage, the Funding 2 Share, the Funding 2 Share
            Percentage, the Seller Share and the Seller Share Percentage made
            by the Cash Manager on the Distribution Date occurring in such
            Trust Calculation Period will be effective only in respect of the
            period beginning on (and including) the first day of such Trust
            Calculation Period and ending on (but excluding) the first
            Assignment Date or Contribution Date, as applicable, to occur
            during such Trust Calculation Period (such period in respect of
            such Distribution Date, an "Interim Calculation Period"), based on
            the aggregate Current Balance of the Mortgage Loans constituting
            the Trust Property (as adjusted from time to time) on the last day
            of the Trust Calculation Period immediately preceding such
            Distribution Date.

      (C)   In addition to the foregoing, if during any Trust Calculation
            Period the Seller sells and assigns New Mortgage Loans to the
            Mortgages Trustee or if a Funding Beneficiary makes a Contribution
            (excluding any Deferred Contribution) to the Mortgages Trustee to
            increase its respective share of the Trust Property, the Cash
            Manager will (on behalf of the Mortgages Trustee and the
            Beneficiaries) recalculate the Funding Share, the Funding Share
            Percentage, the Funding 2 Share, the Funding 2 Share Percentage,
            the Seller Share and the Seller Share Percentage on such
            Assignment Date or Contribution Date, as applicable, in respect of
            the period beginning on (and including) such Assignment Date or
            Contribution Date, as applicable, and ending on the last day of
            such Trust Calculation Period (and including such

                                      14
<PAGE>

            last day of such Trust Calculation Period) (each such period in
            respect of each Assignment Date or Contribution Date, as
            applicable, an "Interim Calculation Period"), based on the
            aggregate Current Balance of the Mortgage Loans constituting the
            Trust Property (as adjusted from time to time) on such Assignment
            Date or Contribution Date, as applicable.

      The parties acknowledge and agree that the Mortgage Sale Agreement
      provides that (a) the Seller may 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 may only make one sale and assignment of New Mortgage Loans to
      the Mortgages Trustee during any Trust Calculation Period.

8.2   Current Funding Share Percentage and Current Funding 2 Share Percentage

      I.    Current Funding Share Percentage:

            (A)   On each Distribution Date (the "Relevant Distribution
                  Date"), the "Current Funding Share Percentage" will be
                  calculated by the Cash Manager in respect of the
                  then-current Trust Calculation Period or related Interim
                  Calculation Period, as applicable, for the purpose of
                  calculating the distributions to be made from the Trust
                  Property on the immediately succeeding Distribution Date,
                  and such Current Funding Share Percentage will be an amount,
                  expressed as a percentage (calculated to an accuracy of five
                  decimal places (rounded upwards)), equal to:

                                      A-B-C+D   x 100
                                      -------
                                         G

                  where,

                  A  =  the Current Funding Share as calculated (a) on the
                        later of the Distribution Date, the Assignment Date or
                        Contribution Date (if any) immediately preceding such
                        Relevant Distribution Date, or (b) in the case of the
                        first Distribution Date, the Initial Funding Share as
                        at the Initial Closing Date;

                  B  =  the amount of any Principal Receipts distributed to
                        Funding on such Relevant Distribution Date in
                        accordance with the provisions described in Clause 11
                        (Distribution of Principal Receipts) below;

                  C  =  the amount of any Losses sustained on the Mortgage
                        Loans during the Trust Calculation Period immediately
                        preceding such Relevant Distribution Date and the
                        amount of any reductions occurring in respect of the
                        Mortgage Loans as described in paragraphs (A through
                        (E of Clause 8.5 (Adjustments to Trust Property)
                        (inclusive) below which have been allocated to Funding
                        in the Trust Calculation Period ending on the Relevant
                        Distribution Date (based on (a) the Current Funding
                        Share Percentage thereof calculated on the
                        Distribution Date immediately preceding such Relevant
                        Distribution Date (provided that the Seller had not
                        sold and assigned New Mortgage Loans to the Mortgages
                        Trustee or that Funding had not paid a Further
                        Contribution

                                      15
<PAGE>

                        to the Mortgages Trustee in the Trust Calculation
                        Period immediately preceding such Relevant
                        Distribution Date), or (b) to the extent that the
                        Seller had sold and assigned New Mortgage Loans to the
                        Mortgages Trustee or that Funding had paid a Further
                        Contribution to the Mortgages Trustee during the Trust
                        Calculation Period immediately preceding such Relevant
                        Distribution Date, the Weighted Average Funding Share
                        Percentage (as defined below) thereof calculated on
                        such Relevant Distribution Date prior to the
                        distribution to be made on such Relevant Distribution
                        Date, or (c) in the case of the first Distribution
                        Date, the Initial Funding Share Percentage);

                  D  =  an amount equal to any Capitalised Arrears which
                        have been allocated to Funding during the Trust
                        Calculation Period immediately preceding such Relevant
                        Distribution Date (based on the Current Funding Share
                        Percentage thereof calculated on the Distribution Date
                        immediately preceding such Relevant Distribution Date
                        or, in the case of the first Distribution Date, the
                        Initial Funding Share Percentage); and

                  G  =  the amount of the Mortgages Trustee Retained
                        Principal Receipts (if any) plus the aggregate Current
                        Balance of all the Mortgage Loans in the Trust
                        Property as at the last day of the Trust Calculation
                        Period immediately preceding such Relevant
                        Distribution Date or, if applicable, on the relevant
                        Assignment Date or Contribution Date, after making the
                        distributions, allocations and additions referred to
                        in (B), (C) and (D) above and after taking account of
                        the following (being "Trust Property Calculation
                        Adjustments") (i) any distribution of Principal
                        Receipts to the Seller, Funding and Funding 2, (ii)
                        the amount of any Losses or Capitalised Arrears
                        allocated to the Seller, Funding and Funding 2, (iii)
                        the adjustments referred to in paragraphs (A through
                        (E of Clause 8.5 (Adjustments to Trust Property)
                        (inclusive) below; (iv) the amount of any other
                        additions to or removals from the Trust Property
                        during such Trust Calculation Period, including
                        without limitation, any additions to the Trust
                        Property resulting from Cash Re-draws, Non-Cash
                        Redraws and Further Draws by Borrowers under Flexible
                        Mortgage Loans which are in the Trust Property or (if
                        the Seller subsequently elects not to purchase
                        Mortgage Loans which are the subject of Further
                        Advances from the Mortgages Trustee) Further Advances
                        sold and assigned by the Seller; but excluding the
                        addition of Mortgage Loans on an Assignment Date and
                        any Initial Contribution or Further Contribution made
                        by Funding or Funding 2 during such Trust Calculation
                        Period and (v) any reduction in the outstanding
                        principal balances of Together Connections Mortgage
                        Loans and Connections Mortgage Loans resulting from
                        Borrowers being allocated a portion of the related
                        Together Connections Benefit and Connections Benefit,
                        respectively, under such Mortgage Loans.

            (B)   If during any Trust Calculation Period the Seller sells and
                  assigns New Mortgage Loans to the Mortgages Trustee, the
                  Cash Manager will recalculate the Current Funding Share
                  Percentage on each such Assignment Date which is

                                      16
<PAGE>

                  not also a Contribution Date (the "Relevant Assignment
                  Date") in respect of the related Interim Calculation Period,
                  for the purposes of calculating the distributions to be made
                  from the Trust Property on the immediately succeeding
                  Distribution Date and determining the amount of Losses to be
                  allocated to Funding, and such Current Funding Share
                  Percentage will be an amount, expressed as a percentage
                  (calculated to an accuracy of five decimal places (rounded
                  upwards)), equal to:

                                     A+E x 100
                                     ---
                                       H

                  where,

                  A  =  the Current Funding Share as calculated on the
                        Distribution Date immediately preceding such Relevant
                        Assignment Date;

                  E  =  an amount equal to any Initial Contribution paid by
                        Funding to the Mortgages Trustee on such Relevant
                        Assignment Date in relation to the Funding Share of
                        any New Mortgage Loans assigned to the Mortgages
                        Trustee on such Relevant Assignment Date (which amount
                        the Mortgages Trustee is required pursuant to Clause
                        4.4 (Application by Mortgages Trustee) to pay to the
                        Seller in satisfaction (in part) of the Mortgages
                        Trustee's obligation to pay to the Seller the Initial
                        Purchase Price in respect of New Mortgage Loans sold
                        and assigned to the Mortgages Trustee on such Relevant
                        Assignment Date); and

                  H  =  the amount of the Mortgages Trustee Retained
                        Principal Receipts (if any), plus the aggregate
                        Current Balance of all the Mortgage Loans in the Trust
                        Property as at the Distribution Date immediately
                        preceding such Relevant Assignment Date (after making
                        the distributions, allocations and additions on that
                        preceding Distribution Date), plus the aggregate
                        Current Balance of the New Mortgage Loans sold and
                        assigned to the Mortgages Trustee on such Relevant
                        Assignment Date and after taking account of Trust
                        Property Calculation Adjustments.

            (C)   If during any Trust Calculation Period a Funding Beneficiary
                  pays a Contribution (excluding a Deferred Contribution) to
                  the Mortgages Trustee to increase its share of the Trust
                  Property or receives from the Mortgages Trustee a Special
                  Distribution (where such Special Distribution is not made on
                  a Distribution Date) in accordance with Clause 11
                  (Distribution of Principal Receipts), the Cash Manager will
                  recalculate the Current Funding Share Percentage on each
                  such Contribution Date (the "Relevant Contribution Date") in
                  respect of the related Interim Calculation Period, for the
                  purposes of calculating the distributions to be made from
                  the Trust Property and determining the amount of Losses to
                  be allocated to Funding on the immediately succeeding
                  Distribution Date, and such Current Funding Share Percentage
                  will be an amount, expressed as a percentage (calculated to
                  an accuracy of five decimal places (rounded upwards)), equal
                  to:

                                      17
<PAGE>

                                      A+E+F-I   x 100
                                      -------
                                         J

                  where,

                  A  =  the Current Funding Share as calculated on the
                        Distribution Date immediately preceding such Relevant
                        Contribution Date;

                  E  =  (1) if that Relevant Contribution Date is also an
                        Assignment Date, the amount of any Initial
                        Contribution paid by Funding to the Mortgages Trustee
                        on that Contribution Date in respect of the Funding
                        Share of any New Trust Property, and (2) in all other
                        cases, zero;

                  F  =  an amount equal to any Further Contribution paid by
                        Funding to the Mortgages Trustee on such Relevant
                        Contribution Date to increase Funding's beneficial
                        interest in the Trust Property;

                  I  =  the amount of the Special Distribution distributed
                        to Funding on such date in accordance with the
                        provisions described in Clause 11 (Distribution of
                        Principal Receipts); and

                  J  =  the amount of the Mortgages Trustee Retained
                        Principal Receipts (if any) plus the aggregate Current
                        Balance of all the Mortgage Loans in the Trust
                        Property as at the Distribution Date immediately
                        preceding such Relevant Contribution Date (after
                        making the distributions, allocations and additions on
                        that preceding Distribution Date) plus the aggregate
                        Current Balance of the New Mortgage Loans sold and
                        assigned to the Mortgages Trustee on that Relevant
                        Assignment Date and after taking account of Trust
                        Property Calculation Adjustments.

            II. Current Funding 2 Share Percentage

            (A)   On each Relevant Distribution Date falling after the Funding
                  2 Programme Date, the "Current Funding 2 Share Percentage"
                  will be calculated by the Cash Manager in respect of the
                  then-current Trust Calculation Period or related Interim
                  Calculation Period, as applicable, for the purpose of
                  calculating the distributions to be made from the Trust
                  Property on the immediately succeeding Distribution Date,
                  and such Current Funding 2 Share Percentage will be an
                  amount, expressed as a percentage (calculated to an accuracy
                  of five decimal places (rounded upwards)), equal to:

                                      A-B-C+D   x 100
                                      -------
                                         G

                  where, "A", "B", "C", "D" and "G" have the meanings
                  specified in Clause 8.2(I)(A), provided however that:

                  (1)   references to Funding (including references in any
                        defined term) are to be read as references to Funding
                        2;

                                      18
<PAGE>

                  (2)   references to the first Distribution Date are to be
                        read as the first Distribution Date following the
                        Funding 2 Programme Date; and

                  (3)   references to the Initial Closing Date are to be read
                        as the Funding 2 Programme Date;

                  (4)   prior to the Funding 2 Programme Date, each of the
                        Current Funding 2 Share and the Current Funding 2
                        Share Percentage shall be zero.

            (B)   On each Relevant Assignment Date, the Cash Manager will
                  recalculate the Current Funding 2 Share Percentage in
                  respect of the related Interim Calculation Period, for the
                  purposes of calculating the distributions to be made from
                  the Trust Property on the immediately succeeding
                  Distribution Date and determining the amount of Losses to be
                  allocated to Funding 2, and such Current Funding 2 Share
                  Percentage will be an amount, expressed as a percentage
                  (calculated to an accuracy of five decimal places (rounded
                  upwards)), equal to:

                                      A+E   x 100
                                      ---
                                       H

                  where, "A", "E" and "H" have the meanings specified in
                  clause 8.2(I)(B), provided, however that references to
                  Funding (including references in any defined term) are to be
                  read as references to Funding 2.

            (C)   On each Relevant Contribution Date, the Cash Manager will
                  recalculate the Current Funding 2 Share Percentage in
                  respect of the related Interim Calculation Period, for the
                  purposes of calculating the distributions to be made from
                  the Trust Property and determining the amount of Losses to
                  be allocated to Funding 2 on the immediately succeeding
                  Distribution Date, and such Current Funding 2 Share
                  Percentage will be an amount, expressed as a percentage
                  (calculated to an accuracy of five decimal places (rounded
                  upwards)), equal to:

                                       A+E+F   x 100
                                      -------
                                         J

                  where, "A", "E", "F" and "J" have the meanings specified in
                  clause 8.2(I)(C), provided, however that references to
                  Funding (including references in any defined term) are to be
                  read as references to Funding 2.

            (D)   For the purposes of Clauses 8.2(II)(A), 8.2(II)(B) and
                  8.2(II)(C) above, in respect of the earliest to occur,
                  following the Funding 2 Programme Date, of (a) a
                  Distribution Date, (b) a Contribution Date or (c) an
                  Assignment Date, item "A" shall be the Initial Funding 2
                  Share.

                                      19
<PAGE>

8.3   Weighted Average Funding Share Percentage and Weighted Average Funding 2
      Share Percentage

      (A)   Weighted Average Funding Share Percentage:

            On any Distribution Date in respect to which:

            (1)   the Seller had sold and assigned New Mortgage Loans to the
                  Mortgages Trustee; or

            (2)   a Funding Beneficiary had made a Contribution (excluding any
                  Deferred Contribution) to the Mortgages Trustee to increase
                  its share of the Trust Property; or

            (3)   Funding had received a Special Distribution from the
                  Mortgages Trustee,

            during the Trust Calculation Period immediately preceding such
            Distribution Date, the Cash Manager (on behalf of the
            Beneficiaries) will calculate (for the sole purpose of making the
            distributions to be made on such Distribution Date) the Weighted
            Average of the Current Funding Share Percentages that were
            calculated previously in respect of each Interim Calculation
            Period occurring in such immediately preceding Trust Calculation
            Period based on the amount of Revenue Receipts and Principal
            Receipts received and Losses sustained during each such Interim
            Calculation Period. The "Weighted Average Funding Share
            Percentage" for any such Distribution Date will be equal to:

                  (i)   in respect of the distribution of Revenue Receipts to
                        be made on such Distribution Date, an amount
                        determined in accordance with the formula set forth
                        below:

                                (AxB) + (CxD)

                        where,

                        A  =  the related Current Funding Share Percentage
                              for Interim Calculation Period 1;

                        B  =  the number of days in Interim Calculation
                              Period 1 divided by the number of days in the
                              Trust Calculation Period;

                        C  =  the related Current Funding Share Percentage
                              for Interim Calculation Period 2; and

                        D  =  the number of days in Interim Calculation
                              Period 2 divided by the number of days in the
                              Trust Calculation Period;

                  (ii)  in respect of the distribution of Principal Receipts
                        to be made on such Distribution Date, an amount
                        determined in accordance with the formula set forth
                        below:

                                (AxB) + (CxD)

                                      20
<PAGE>

                        where, "A", "B", "C" and "D" have the meanings
                        specified in Clause 8.3(A)(i) above.

                  (iii) in respect of the allocation of Losses to be made on
                        such Distribution Date, an amount determined in
                        accordance with the formula set forth below:

                                (AxB) + (CxD)

                        where, "A", "B", "C" and "D" have the meanings
                        specified in Clause 8.3(A)(i) above.

            (B)   Weighted Average Funding 2 Share Percentage

                  On any Distribution Date in respect to which:

                  (1)   the Seller had sold and assigned New Mortgage Loans to
                        the Mortgages Trustee; or

                  (2)   a Funding Beneficiary had made a Contribution
                        (excluding any Deferred Contribution) to the Mortgages
                        Trustee to increase its share of the Trust Property;
                        or

                  (3)   Funding had received a Special Distribution from the
                        Mortgages Trustee,

                  during the Trust Calculation Period immediately preceding
                  such Distribution Date, the Cash Manager (on behalf of the
                  Beneficiaries) will calculate (for the sole purpose of
                  making the distributions to be made on such Distribution
                  Date) the Weighted Average of the Current Funding 2 Share
                  Percentages that were calculated previously in respect of
                  each Interim Calculation Period occurring in such
                  immediately preceding Trust Calculation Period based on the
                  amount of Revenue Receipts and Principal Receipts received
                  and Losses sustained during each such Interim Calculation
                  Period. The "Weighted Average Funding 2 Share Percentage"
                  for any such Distribution Date will be equal to:

                  (i)   in respect of the distribution of Revenue Receipts to
                        be made on such Distribution Date, an amount
                        determined in accordance with the formula set forth
                        below:

                                (AxB) + (CxD)

                        where, "A", "B", "C" and "D" have the meanings
                        specified in Clause 8.3(A)(i) above; provided however
                        that the references to Current Funding Share
                        Percentage are to be read as references to Current
                        Funding 2 Share Percentage.

                  (ii)  in respect of the distribution of Principal Receipts
                        to be made on such Distribution Date, an amount
                        determined in accordance with the formula set forth
                        below:

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<PAGE>

                                (AxB) + (CxD)

                        where, "A", "B", "C" and "D" have the meanings
                        specified in Clause 8.3(A)(i) above; provided however
                        that the references to Current Funding Share
                        Percentage are to be read as references to Current
                        Funding 2 Share Percentage.

                  (iii) in respect of the allocation of Losses to be made on
                        such Distribution Date, an amount determined in
                        accordance with the formula set forth below:

                                (AxB) + (CxD)

                        where, "A", "B", "C" and "D" have the meanings
                        specified in Clause 8.3(A)(i) above; provided however
                        that the references to Current Funding Share
                        Percentage are to be read as references to Current
                        Funding 2 Share Percentage.

8.4   Current Funding Share and Current Funding 2 Share

      I.    Current Funding Share

      (A)   On each Distribution Date, the "Current Funding Share" will be
            calculated by the Cash Manager in respect of the then-current
            Trust Calculation Period or the related Interim Calculation
            Period, as applicable, and will be an amount equal to:

                                A-B-C+D

            where "A", "B", "C" and "D" have the meanings specified in Clause
            8.2(I)(A) above.

      (B)   On each Assignment Date (which is not also a Contribution Date),
            the Current Funding Share will be calculated by the Cash Manager
            in respect of the related Interim Calculation Period and will be
            an amount equal to:

                                     A + E

            where "A" and "E" have the meanings specified in Clause 8.2(I)(B)
            above.

      (C)   On each Contribution Date, the Current Funding Share will be
            calculated by the Cash Manager in respect of the related Interim
            Calculation Period and will be an amount equal to:

                                    A+E+F-I

            where "A", "E" and "F" and "I" have the meanings specified in
            Clause 8.2(I)(C) above.

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<PAGE>

      II.   Current Funding 2 Share

      (A)   On each Distribution Date, the "Current Funding 2 Share" will be
            calculated by the Cash Manager in respect of the then-current
            Trust Calculation Period or the related Interim Calculation
            Period, as applicable, and will be an amount equal to:

                                 A-B-C+D

            where "A", "B", "C" and "D" have the meanings specified in Clause
            8.2(II)(A) above.

      (B)   On each Assignment Date (which is not also a Contribution Date),
            the Current Funding 2 Share will be calculated by the Cash Manager
            in respect of the related Interim Calculation Period and will be
            an amount equal to:

                                     A+E

            where "A" and "E" have the meanings specified in Clause
            8.2(II)(B).

      (C)   On each Contribution Date, the Current Funding 2 Share will be
            calculated by the Cash Manager in respect of the related Interim
            Calculation Period and will be an amount equal to:

                                    A+E+F

            where "A", "E" and "F" have the meanings specified in Clause
            8.2(II)(C) above.

8.5   Adjustments to Trust Property

      If any of the following events has occurred during a Trust Calculation
      Period, then (subject to the Cash Manager receiving notice or otherwise
      being aware of the occurrence of the event) for the purposes of making
      the Trust Property Calculation Adjustments, the aggregate Current
      Balance of the Mortgage Loans constituting the Trust Property shall be
      reduced or, as the case may be, deemed to be reduced:

      (A)   any Borrower exercises a right of set-off in relation to any
            Mortgage Loan in the Trust Property so that the amount of
            principal and/or interest owing under such Mortgage Loan is
            reduced but no corresponding payment is received by the Mortgages
            Trustee, in which event the aggregate Current Balance of the
            Mortgage Loans constituting the Trust Property shall be reduced by
            an amount equal to the amount so set-off by such Borrower; and/or

      (B)   a Mortgage Loan or (as applicable) its Related Security (i) is in
            breach of the Representations and Warranties in the Mortgage Sale
            Agreement as at the Initial Closing Date or, as the case may be,
            the relevant Assignment Date or (ii) is the subject of a Product
            Switch or a Further Advance or in respect of which the Borrower
            has accepted an offer by the Seller of a Personal Secured Loan and
            the Seller has elected to purchase the relevant Mortgage Loan or
            Mortgage Loans and Related Security, and in the case of (i) above
            the Seller fails to repurchase and in the case of (ii) above the
            Seller fails to purchase, the

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<PAGE>

            relevant Mortgage Loan or Mortgage Loans under the relevant
            Mortgage Account and their Related Security as required by the
            terms of the Mortgage Sale Agreement; in which event the aggregate
            Current Balance of the Mortgage Loans constituting the Trust
            Property shall be deemed to be reduced for the purposes of making
            the Trust Property Calculation Adjustments by an amount equal to
            the Current Balance of the relevant Mortgage Loan or Mortgage
            Loans under the relevant Mortgage Account (together with Arrears
            of Interest and Accrued Interest) which the Seller has failed to
            repurchase or purchase, as applicable; and/or

      (C)   both the Security Trustee and the Funding 2 Security Trustee are
            notified that a Flexible Mortgage Loan or part thereof has been
            determined by a court judgment on the point or as a result of a
            determination by a relevant regulatory authority (whether or not
            in relation to an analogous flexible mortgage loan product of
            another UK mortgage lender):

            (1)   to be unenforceable; and/or

            (2)   not to fall within the first ranking charge by way of legal
                  mortgage or first ranking standard security over the
                  relevant Mortgaged Property,

            and, in either case, such Flexible Mortgage Loan is not otherwise
            subject to the repurchase obligation under the Mortgage Sale
            Agreement, in which event, the aggregate Current Balance of the
            Mortgage Loans constituting the Trust Property shall be deemed to
            be reduced for the purposes of making the Trust Property
            Calculation Adjustments by an amount equal to that portion of the
            Current Balance of the Flexible Mortgage Loan which is so
            determined to be unenforceable or not to fall within the first
            ranking charge by way of legal mortgage or first ranking standard
            security over the relevant Mortgaged Property; and/or

      (D)   (i) in respect of breaches of Representations and Warranties in
            the Mortgage Sale Agreement, the Seller would be required to
            repurchase a Mortgage Loan and its Related Security and (ii) in
            respect of a Mortgage Loan subject to a Further Advance or a
            Product Switch or in respect of which the Borrower has accepted an
            offer by the Seller of a Personal Secured Loan, the Seller elects
            to purchase the relevant Mortgage Loan or Mortgage Loans under the
            relevant Mortgage Account (including any Personal Secured Loans
            and any Further Draws made thereunder secured over the same
            Mortgaged Property) and their Related Security in accordance with
            the terms of the Mortgage Sale Agreement, but such Mortgage Loan
            and its Related Security are not capable of being repurchased or
            purchased, as applicable; in which event the aggregate Current
            Balance of the Mortgage Loans constituting the Trust Property
            shall be deemed to be reduced for the purposes of making the Trust
            Property Calculation Adjustments by an amount equal to the Current
            Balance of the relevant Mortgage Loan (together with Arrears of
            Interest and Accrued Interest) which is not capable of being
            repurchased or purchased, as applicable; and/or

      (E)   the Seller breaches any other material warranty under the Mortgage
            Sale Agreement and/or (for so long as it is the Administrator) the
            Administration

                                      24
<PAGE>

            Agreement, in which event the aggregate Current Balance of
            Mortgage Loans constituting the Trust Property shall be deemed for
            the purposes of making the Trust Property Calculation Adjustments
            to be reduced by an amount equivalent to all losses, costs,
            liabilities, claims, expenses and damages incurred by the
            Beneficiaries as a result of such breach.

            The reductions and deemed reductions set out in paragraphs (A),
            (B), (C), (D) and (E) (including any resulting loss in respect
            thereof) of this Clause and any losses arising in respect of any
            Personal Secured Loans shall, subject to Clause 9.1 (Initial
            Minimum Seller Share), be allocated on the relevant Distribution
            Date, Assignment Date or Contribution Date (as applicable) first
            to the Seller Share of the Trust Property (or for the purposes of
            calculating the Seller Share of the Trust Property as the case may
            be) until the Seller Share is zero and thereafter shall be
            allocated to the Funding Share and the Funding 2 Share of the
            Trust Property pro rata in accordance with the Funding Proportion
            and the Funding 2 Proportion. If at, or any time after the Initial
            Closing 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 the whole or that
            portion of any Mortgage Loan and its Related Security which is or
            has been subject to any matter described in paragraphs (A) through
            (E) above or any Personal Loan in respect of which losses have
            arisen and in respect of which the Seller Share of the Trust
            Property has been reduced or deemed reduced such property,
            interest, right or benefit will constitute a Revenue Receipt and
            the Mortgages Trustee will remit, assign or transfer the same to
            Funding and to Funding 2 pro rata in accordance with the Funding
            Proportion and the Funding 2 Proportion (but only if and to the
            extent that the related reductions or deemed reductions were
            applied against the Funding Share and the Funding 2 Share of the
            Trust Property) and thereafter 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 will hold such property, interest,
            right or benefit and/or the proceeds thereof upon trust absolutely
            for Funding and/or Funding 2 and/or the Seller (separate from the
            Mortgages Trust), as the case may require.

8.6   Current Seller Share Percentage

      (A)   On each Relevant Distribution Date, the "Current Seller Share
            Percentage" will be calculated by the Cash Manager in respect of
            the then-current Trust Calculation Period or the related Interim
            Calculation Period, as applicable, and the distributions to be
            made from the Trust Property on the immediately succeeding
            Distribution Date, and will be a percentage equal to:

            100% minus the sum of the Current Funding Share Percentage and the
            Current Funding 2 Share Percentage

            where the Current Funding Share Percentage and the Current Funding
            2 Share Percentage are calculated on such Relevant Distribution
            Date in accordance with Clauses 8.2(I)(A) and 8.2(II)(A)
            respectively.

      (B)   On each Relevant Assignment Date, the Cash Manager will
            recalculate the Current Seller Share Percentage in respect of the
            related Interim Calculation

                                      25
<PAGE>

            Period and the distributions to be made from the Trust Property on
            the immediately succeeding Distribution Date and will be a
            percentage equal to:

            100% minus the sum of the Current Funding Share Percentage and the
            Current Funding 2 Share Percentage

            where the Current Funding Share Percentage and the Current Funding
            2 Share Percentage are as calculated on such Relevant Assignment
            Date in accordance with Clauses 8.2(I)(B) and 8.2(II)(B)
            respectively.

      (C)   On each Relevant Contribution Date, the Cash Manager will
            recalculate the Current Seller Share Percentage in respect of the
            related Interim Calculation Period and the distributions to be
            made from the Trust Property on the immediately succeeding
            Distribution Date and will be a percentage equal to:

            100% minus the sum of the Current Funding Share Percentage and the
            Current Funding 2 Share Percentage

            where the Current Funding Share Percentage and the Current Funding
            2 Share Percentage are as calculated on such Relevant Contribution
            Date in accordance with Clauses 8.2(I)(C) and 8.2(II)(C)
            respectively.

8.7   Weighted Average Seller Share Percentage

      On any Distribution Date in respect to which:

      (1)   the Seller has assigned New Mortgage Loans to the Mortgages
            Trustee; or

      (2)   a Funding Beneficiary has made a Contribution (excluding a
            Deferred Contribution) to the Mortgages Trustee to increase its
            share of the Trust Property; or

      (3)   Funding had received a Special Distribution from the Mortgages
            Trustee,

      during the Trust Calculation Period immediately preceding such
      Distribution Date, the Cash Manager will calculate (for the sole purpose
      of making the distributions to be made on such Distribution Date) the
      Weighted Average of the Seller Share Percentages that were calculated
      previously in respect of the Revenue Receipts and Principal Receipts
      received, and Losses sustained, during each Interim Calculation Period
      occurring in such immediately preceding Trust Calculation Period and
      will be a percentage equal to:

      (A)   in respect of the distribution of Revenue Receipts to be made on
            such Distribution Date:

            100% minus the sum of the Weighted Average Funding Share
            Percentage and the Weighted Average Funding 2 Share Percentage

            where such Weighted Average Funding Share Percentage and Weighted
            Average Funding 2 Share Percentage are as calculated on such
            Distribution Date in accordance with Clauses 8.3(A)(i) and
            8.3(B)(i) respectively;

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<PAGE>

      (B)   in respect of the distribution of Principal Receipts to be made on
            such Distribution Date:

            100% minus the sum of the Weighted Average Funding Share
            Percentage and the Weighted Average Funding 2 Share Percentage

            where such Weighted Average Funding Share Percentage and Weighted
            Average Funding 2 Share Percentage are as calculated on such
            Distribution Date in accordance with Clauses 8.3(A)(ii) and
            8.3(B)(ii) respectively; and

      (C)   in respect of the allocation of Losses to be made on such
            Distribution Date:

            100% minus the sum of the Weighted Average Funding Share
            Percentage and the Weighted Average Funding 2 Share Percentage

            where such Weighted Average Funding Share Percentage and Weighted
            Average Funding 2 Share Percentage are as calculated on such
            Distribution Date in accordance with Clauses 8.3(A)(iii) and
            8.3(B)(iii) respectively.

8.8   Current Seller Share

      (A)   On each Relevant Distribution Date, the "Current Seller Share"
            will be calculated by the Cash Manager in respect of the
            then-current Trust Calculation Period or the related Interim
            Calculation Period, as applicable, and will be an amount equal to:

            The aggregate amount of the Trust Property (excluding Revenue
            Receipts) as at the Relevant Distribution Date minus the sum of
            the Current Funding Share and the Current Funding 2 Share

            where "Current Funding Share" and "Current Funding 2 Share" are as
            calculated on such Relevant Distribution Date in accordance with
            Clauses 8.4(I)(A) and 8.4(II)(A) respectively.

      (B)   On each Relevant Assignment Date, the Current Seller Share will be
            calculated by the Cash Manager in respect of the related Interim
            Calculation Period and will be an amount equal to:

            The aggregate amount of the Trust Property (excluding Revenue
            Receipts) as at an Assignment Date minus the sum of the Current
            Funding Share and the Current Funding 2 Share

            where "Current Funding Share" and "Current Funding 2 Share" are as
            calculated on such Relevant Assignment Date in accordance with
            Clauses 8.4(I)(B) and 8.4(II)(B) above.

      (C)   On each Relevant Contribution Date, the Current Seller Share will
            be calculated by the Cash Manager in respect of the Interim
            Calculation Period and will be an amount equal to:

                                      27
<PAGE>

            The aggregate amount of the Trust Property (excluding Revenue
            Receipts) as at a Contribution Date minus the sum of the Current
            Funding Share and the Current Funding 2 Share

            where "Current Funding Share" and "Current Funding 2 Share" are as
            calculated on such Relevant Contribution Date in accordance with
            Clauses 8.4(I)(C) and 8.4(II)(C) respectively.

8.9   Funding Share/Funding 2 Share/Seller Share

      The Funding Share, the Funding 2 Share and the Seller Share may not be
      reduced below zero. At all times the sum of the Funding Share
      Percentage, the Funding 2 Share Percentage and the Seller Share
      Percentage shall be equal to 100 per cent. of the Trust Property.

9.    Minimum Seller Share

9.1   Initial Minimum Seller Share

      The Seller Share of the Trust Property includes an amount equal to the
      Minimum Seller Share. Unless and until both the Funding Share and the
      Funding 2 Share of the Trust Property are in an amount equal to zero or
      following the occurrence of an Asset Trigger Event, the Seller will not
      be entitled to receive Mortgages Trustee Principal Receipts which would
      reduce the Seller Share of the Trust Property to an amount less than the
      Minimum Seller Share and the Seller consents and directs the Mortgages
      Trustee accordingly.

9.2   Fluctuation of Minimum Seller Share on each Distribution Date

      At the Initial Closing Date, the Minimum Seller Share will be
      (GBP)50,000,000. The amount of the Minimum Seller Share will be
      recalculated on each Distribution Date in accordance with the following
      formula:

                                    W+X+Y+Z

      where:

      W  =  100% of the sum of the average cleared credit balance of all
            applicable accounts linked to Together Connections Mortgage Loans
            and Connections Mortgage Loans in respect of each calendar month
            or any part of any such calendar month;

      X  =  2.0% of the aggregate Current Balance of all Mortgage Loans
            comprised in the Trust Property as at the last day of the
            immediately preceding Trust Calculation Period;

      Y  =  the product of: p x q x r where:

            p  =  8%;

            q  =  the sum of (i) the "Flexible Cash Re-Draw Capacity", being
                  an amount equal to the difference between (1) the maximum
                  amount of

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<PAGE>

                  Cash Re-draws that Borrowers may draw under Flexible
                  Mortgage Loans included in the Trust Property (whether or
                  not drawn) as at the last day of the immediately preceding
                  Trust Calculation Period and (2) the aggregate Current
                  Balance of Cash Re-draws which form part of the Trust
                  Property as at the last day of the immediately preceding
                  Trust Calculation Period; and (ii) the "Further Draw
                  Capacity", being an amount equal to the difference between
                  (1) the maximum amount of Further Draws that Borrowers may
                  make under Personal Secured Loans included in the Trust
                  Property (whether or not drawn) as at the last day of the
                  immediately preceding Trust Calculation Period and (2) the
                  aggregate Current Balance of Personal Secured Loans which
                  form part of the Trust Property as at the last day of the
                  immediately preceding Trust Calculation Period; and

            r  =  3; and

      Z     = the aggregate Current Balance of (i) Re-Draws and (ii) Personal
            Secured Loans in the Trust Property, in each case as at the last
            day of the immediately preceding Trust Calculation Period.

9.3   Recalculation of Minimum Seller Share following occurrence of
      exceptional events

      The calculation of the Minimum Seller Share in accordance with Clause
      9.2 (Fluctuation of Minimum Seller Share on each Distribution Date)
      above will be recalculated by the Cash Manager with the agreement of the
      parties hereto subject to the approval of the Rating Agencies if the
      Seller merges or otherwise combines its business with another bank or
      other financial institution so as to increase the risks associated with
      Borrowers holding deposits in Northern Rock accounts.

10.   Distribution of Revenue Receipts

10.1  Distribution of Third Party Amounts

      Pursuant to the Cash Management Agreement, the Cash Manager (at the
      direction of the Mortgages Trustee acting on behalf of the Beneficiaries
      at their direction and with their consent which is hereby given) will
      deduct, as and when identified, Third Party Amounts from the Revenue
      Receipts standing to the credit of the Mortgages Trustee GIC Account or
      Mortgages Trustee Transaction Account, and pay over the same to the
      proper recipients thereof. The Mortgages Trustee and the Beneficiaries
      hereby consent to such deductions.

10.2  Distribution of Mortgages Trustee Available Revenue Receipts

      Subject as provided in Clause 8.5 (Adjustments to Trust Property), on
      each Distribution Date the Cash Manager (at the direction of the
      Mortgages Trustee acting on behalf of the Beneficiaries at their
      direction and with their consent which is hereby given) will distribute
      Mortgages Trustee Available Revenue Receipts in the following order of
      priority:

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<PAGE>

      (A)   first, in no order of priority between them but in proportion to
            the respective amounts due of:

            (1)   any fees, costs, charges, liabilities and expenses then due
                  or to become due to the Mortgages Trustee under the
                  provisions of this Deed together with (if applicable) VAT
                  thereon (to the extent not already included) as provided
                  herein; and

            (2)   any amounts due and payable by the Mortgages Trustee to
                  third parties in respect of the Mortgages Trust but only if
                  incurred without breach by the Mortgages Trustee of the
                  documents to which it is a party and payment has not been
                  provided for elsewhere;

      (B)   second, in no order of priority between them but in proportion to
            the respective amounts due of:

            (1)   any remuneration then due and payable to the Administrator
                  and any costs, charges, liabilities and expenses then due or
                  to become due to the Administrator under the provisions of
                  the Administration Agreement prior to the immediately
                  succeeding Distribution Date, in each case together with (if
                  applicable) VAT thereon (to the extent not already included)
                  as provided therein; and

            (2)   any remuneration then due and payable to the Cash Manager
                  and any costs, charges, liabilities and expenses then due or
                  to become due to the Cash Manager under the provisions of
                  the Cash Management Agreement prior to the immediately
                  succeeding Distribution Date, in each case together with (if
                  applicable) VAT thereon (to the extent not already included)
                  as provided therein;

      (C)   third, in no order of priority between them but in proportion to
            the respective amounts due, and subject to the proviso below, to
            allocate and pay Mortgages Trustee Available Revenue Receipts to:

            (1)   the Seller in an amount determined by multiplying the total
                  amount of the remaining Mortgages Trustee Available Revenue
                  Receipts by the Current Seller Share Percentage of the Trust
                  Property, as determined on the immediately preceding
                  Distribution Date or, in the case of the first Distribution
                  Date immediately following the relevant Closing Date, as of
                  such Closing Date; and

            (1)   Funding, in an amount equal to the Funding (Mortgages Trust)
                  Revenue Amount; and

            (2)   Funding 2, as an amount equal to the Funding 2 (Mortgages
                  Trust) Revenue Amount; and

      (D)   fourth, to allocate:

            (i)   to Funding but pay at the direction of Funding to the Seller
                  an amount equal to the Funding Proportion of YY - ZZ; and

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<PAGE>

            (ii)  to Funding 2 but pay at the direction of Funding 2 to the
                  Seller an amount equal to the Funding 2 Proportion of YY -
                  ZZ,

            where "YY" is the amount of the Mortgages Trustee Available
            Revenue Receipts and "ZZ" is the amount of such Mortgages Trustee
            Available Revenue Receipts applied and/or allocated under items
            (A) to (C) above, such amount to be in satisfaction of amounts of
            Deferred Purchase Price due to the Seller under the terms of the
            Mortgage Sale Agreement;

      PROVIDED THAT if an Assignment Date or a Contribution Date has occurred
      during the Trust Calculation Period immediately preceding such
      Distribution Date, then the Cash Manager will use (i) the Weighted
      Average Seller Share Percentage (instead of the Current Seller Share
      Percentage) as calculated pursuant to Clause 8.7(A) above in determining
      the amount of Mortgages Trustee Available Revenue Receipts to distribute
      to the Seller pursuant to Clause 10.2(C)(1) above, (ii) the Weighted
      Average Funding Share Percentage (instead of the Current Funding Share
      Percentage) as calculated pursuant to Clause 8.3(A) above in determining
      the Funding (Mortgages Trust) Revenue Amounts pursuant to Clause
      10.2(C)(2) and Clause 10.3 (Calculation of Funding (Mortgages Trust)
      Revenue Amount and Funding 2 (Mortgages Trust) Revenue Amount) and (iii)
      the Weighted Average Funding 2 Share Percentage (instead of the Current
      Funding 2 Share Percentage) as calculated pursuant to Clause 8.3(B)
      above in determining the amount of Funding 2 (Mortgages Trust) Revenue
      Amounts pursuant to Clause 10.2(C)(2) and Clause 10.3 (Calculation of
      Funding (Mortgages Trust) Revenue Amount and Funding 2 (Mortgages Trust)
      Revenue Amount).

10.3  Calculation of Funding (Mortgages Trust) Revenue Amount and Funding 2
      (Mortgages Trust) Revenue Amount

      The "Funding (Mortgages Trust) Revenue Amount" shall be the aggregate of
      the amounts ascertained and allocated to Funding under items (a), (b)
      and (c) below and the "Funding 2 (Mortgages Trust) Revenue Amount" shall
      be the amounts ascertained and allocated to Funding 2 under items (a),
      (b) and (c) below:

      (a)   firstly, in no order of priority between them but in proportion to
            the respective amount due to:

            (i)   Funding in an amount which is equal to the lesser of:

                  (x)   the aggregate of the amounts to be applied on the
                        immediately succeeding Payment Date for Group 1
                        Issuers and the immediately succeeding Payment Date
                        for Group 2 Issuers as set forth under the Funding
                        Pre-Enforcement Revenue Priority of Payments through
                        and including paragraph (J) thereof or, as they case
                        may be, the Funding Post-Enforcement Priority of
                        Payments (but excluding any principal amount due under
                        any Funding Intercompany Loan (save that, for the
                        avoidance of doubt, such exclusion shall not apply in
                        respect of any Funding Available Revenue Receipts
                        which are applied by a Funding Issuer to credit that
                        Funding Issuer's Principal Deficiency Ledger and
                        thereby reduce the principal payable under that

                                      31
<PAGE>

                        Funding Issuer's Intercompany Loan) and any amount of
                        Deferred Contribution due under paragraph (F) of the
                        Funding Post-Enforcement Priority of Payments), less
                        all other amounts (not derived from the distribution
                        of Mortgages Trustee Available Revenue Receipts under
                        this Deed) which will constitute Funding Available
                        Revenue Receipts on the immediately succeeding Payment
                        Date, such amount not to be less than zero; and

                  (y)   an amount determined by multiplying the total amount
                        of the remaining Mortgages Trustee Available Revenue
                        Receipts by the Current Funding Share Percentage of
                        the Trust Property, as determined on the immediately
                        preceding Distribution Date or, in the case of the
                        first Distribution Date, the Initial Funding Share
                        Percentage);

            (ii)  Funding 2 in an amount which is equal to the lesser of:

                  (x)   the aggregate of the amounts to be applied on the
                        immediately succeeding Payment Date as set forth under
                        the Funding 2 Pre-Enforcement Revenue Priority of
                        Payments through and including paragraph [(T)] thereof
                        or, as the case may be, the Funding 2 Post-Enforcement
                        Priority of Payments (but excluding any principal
                        amount due under the Global Intercompany Loan
                        Agreement (save that, for the avoidance of doubt, such
                        exclusion shall not apply in respect of any Funding 2
                        Available Revenue Receipts which are applied by
                        Funding 2 to credit any Principal Deficiency
                        Subledgers and thereby reduce the principal payable
                        under the related Loan Tranches) and any amount of
                        Deferred Contribution under paragraph [(N] of the
                        Funding 2 Post-Enforcement Priority of Payments), less
                        all other amounts (not derived from the distribution
                        of Mortgages Trustee Available Revenue Receipts under
                        this Deed) which will constitute Funding 2 Available
                        Revenue Receipts on the immediately succeeding Payment
                        Date, such amount not to be less than zero; and

                  (y)   an amount determined by multiplying the total amount
                        of the remaining Mortgages Trustee Available Revenue
                        Receipts by the Current Funding 2 Share Percentage of
                        the Trust Property, as determined on the immediately
                        preceding Distribution Date;

      (b)   secondly, in no order of priority between them to Funding and
            Funding 2, to the extent not already paid pursuant to item
            (C)(2)(a) above, up to the amounts set forth in item (a)(i)(x) and
            item (a)(ii)(x) above, respectively; provided, that if remaining
            Mortgages Trustee Available Revenue Receipts are insufficient on
            such Distribution Date to satisfy in full the amounts set forth in
            item (a)(i)(x) and item (a)(ii)(x) above, then to Funding and
            Funding 2 pro rata, based on the Funding Proportion and the
            Funding 2 Proportion, and the remaining Mortgages Trustee
            Available Revenue Receipts will continue to be

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<PAGE>

            allocated on such Distribution Date in accordance with this item
            (b) until such Mortgages Trustee Available Revenue Receipts are
            fully allocated;

      (c)   thirdly, in no order of priority between them but in proportion to
            the respective amounts due to:

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

            (ii)  Funding 2 in an amount equal to the aggregate of the amounts
                  to be applied on the immediately succeeding Payment Date as
                  set forth under the Funding 2 Pre-Enforcement Revenue
                  Priority of Payments following paragraph [(T)] thereof or,
                  as the case may be, the Funding 2 Post-Enforcement Priority
                  of Payments (but excluding any principal amount due under
                  the Global Intercompany Loan Agreement (save that, for the
                  avoidance of doubt, such exclusion shall not apply in
                  respect of any Funding 2 Available Revenue Receipts which
                  are applied by Funding 2 to credit any Principal Deficiency
                  Subledgers and thereby reduce the principal payable under
                  the related Loan Tranches) and any amount of Deferred
                  Contribution under paragraph [(X)] of the Funding 2
                  Pre-Enforcement Revenue Priority of Payments and/or
                  paragraph [(N)] of the Funding 2 Post-Enforcement Priority
                  of Payments), less all other amounts (not derived from the
                  distribution of Mortgages Trustee Available Revenue Receipts
                  under this Deed) which will constitute Funding 2 Available
                  Revenue Receipts on the immediately succeeding Payment Date,
                  such amount not to be less than zero,

            provided, that if remaining Mortgages Trustee Available Revenue
            Receipts are insufficient on such Distribution Date to satisfy in
            full the amounts set forth in item (c)(i) and item (c)(ii) above,
            then to Funding and Funding 2 pro rata, based on the Funding
            Proportion and the Funding 2 Proportion, and the remaining
            Mortgages Trustee Available Revenue Receipts will continue to be

                                      33
<PAGE>

            allocated on such Distribution Date in accordance with this item
            (c) until such receipts are fully allocated.

11.   Distribution of Principal Receipts

11.1  Distribution of Principal Receipts prior to the occurrence of a Trigger
      Event

      Subject as provided in Clause 8.6 (Adjustments to Trust Property), prior
      to the occurrence of a Trigger Event (and whether or not there has been
      an enforcement of the Funding Security, the Funding 2 Security, any
      [Funding Issuer Security or any Funding 2 Issuer Security]), on each
      Distribution Date (or, in respect of any Initial Purchase Price or
      Special Distribution, on any Contribution Date), the Cash Manager (at
      the direction of the Mortgages Trustee acting on behalf of the
      Beneficiaries at their direction and with their consent which is hereby
      given) shall, subject to the provisos below, allocate and distribute
      Mortgages Trustee Principal Receipts as follows:

      (A)   first, to the Seller an amount in respect of any Initial Purchase
            Price (if any) or Special Distribution which is then allocable and
            payable to the Seller under Clause 6.4 (Distribution) above;

      (B)   second, to Funding the amount of any Special Distribution which is
            then allocable and payable to Funding in accordance with Clause
            6.4 (Distribution) above;

      (C)   third, in no order of priority between them but in proportion to
            the respective amounts due:

            (1)   to Funding an amount in respect of each Funding Issuer which
                  is equal to the lesser of:

                  (a)   (i)   prior to the occurrence of an ACA Trigger
                              Event, the principal amount due on the Funding
                              Intercompany Loan of such Funding Issuer equal
                              to the Controlled Amortisation Amounts due, if
                              any, on such Funding Issuer's Payment Date
                              immediately succeeding such Distribution Date
                              (in each case determined on the assumption that
                              the Issuer Reserve Requirement, the Issuer
                              Arrears Test and the Subordinated Principal Test
                              (as applicable) are satisfied on such date; that
                              the Controlled Amortisation Amount is the
                              relevant amount as set forth in the tables
                              contained in Schedule 4 to the Current Issuer
                              Cash Management Agreement; and that the proviso
                              appearing at the end of such tables does not
                              apply); and

                        (ii)  upon and after the occurrence of an ACA Trigger
                              Event, (x) in respect of each Funding Issuer
                              that is not an ACA Issuer, an amount as set
                              forth in (1)(a)(i) above; and (y) in respect of
                              each ACA Issuer, up to an amount equal to the
                              ACA Limit Amount in respect of such ACA Issuer;
                              and

                                      34
<PAGE>

                  (b)   an amount in respect of each Funding Issuer equal to:

<TABLE>
<CAPTION>
                                     <S>        <C>    <C>                           <C>  <C>
                                                          Current Funding Share             Outstanding Principal
                                                       Percentage as calculated on         Balance on such Funding
                                                        the immediately preceding              Issuer's Funding
                                     Mortgages          Distribution Date (or, in             Intercompany Loan
                                     Trustee     x         the case of the first                 -----------------
                                     Principal         Distribution Date following    x      Aggregate Outstanding
                                     Receipts          the Closing Date in respect           Principal Balance on
                                                        of such Issuer, as of the              all Funding
                                                          relevant Closing Date)            Intercompany Loans
</TABLE>

            (2)   to Funding 2 in an amount equal to the lesser of:

                  (a)   if Funding 2 has a Repayment Requirement on that
                        Distribution Date, the amount of such Repayment
                        Requirement; and

                  (b)   an amount determined by multiplying the total amount
                        of remaining Mortgages Trustee Principal Receipts by
                        the Current Funding 2 Share Percentage of the Trust
                        Property;

      (D)   fourth, in no order between them but in proportion to the
            respective amounts due to Funding and Funding 2, to the extent not
            already paid pursuant to item (C) above, up to the amounts set
            forth in item (C)(1)(a) and item (C)(2)(a) above, respectively,
            provided, that if remaining Mortgages Trustee Principal Receipts
            are insufficient on such Distribution Date to fully satisfy the
            amounts set forth in item (C)(1)(a) and item (C)(2)(a) above, then
            to Funding and Funding 2 pro rata according to their respective
            Shares of the Trust Property as determined pursuant to this Deed;
            and

      (E)   fifth, if such Distribution Date is not a Seller Share Event
            Distribution Date, to allocate to the Seller an amount equal to AA
            - BB, where "AA" is the amount of Mortgages Trustee Principal
            Receipts and "BB" is the amount of such Mortgages Trustee
            Principal Receipts applied and/or allocated under (A) through (D)
            above;

      provided that, if an Assignment Date or a Contribution Date has occurred
      during the Trust Calculation Period immediately preceding that
      Distribution Date, then the Cash Manager will use (i) the Weighted
      Average Funding 2 Share Percentage (instead of the Funding 2 Share
      Percentage) in determining the amount of Mortgages Trustee Principal
      Receipts to distribute to Funding 2 on that Distribution Date and (ii)
      the Weighted Average Funding Share Percentage in determining the amount
      of Mortgages Trustee Principal Receipts to distribute to Funding on that
      Distribution Date.

PROVIDED THAT in relation to (A) through (E) above the following rules (the
"Rules for the application of Mortgages Trustee Principal Receipts") shall
apply:

                                      35
<PAGE>

      (1)   (a)   If the Notes of any Funding Issuer have become
                  immediately due and payable as a result of the service of a
                  Note Enforcement Notice or if the Intercompany Loan of any
                  Funding Issuer has (and the other Intercompany Loans of any
                  other Funding Issuers have) become immediately due and
                  payable as a result of the service of an Intercompany Loan
                  Enforcement Notice on Funding, principal payments in respect
                  of the Intercompany Loan of that Funding Issuer may be made
                  in excess of any Controlled Amortisation Amount and
                  paragraph (C)(1)(a) above shall no longer apply in relation
                  to that Funding Issuer and, except following a Non-Asset
                  Trigger Event, the amount of Mortgages Trustee Principal
                  Receipts to be distributed to Funding in respect of that
                  Funding Issuer on that Distribution Date may not exceed the
                  amount determined under paragraph (C)(1)(b) above.

      (2)   (a)   If the Notes of any Funding Issuer have become
                  immediately due and payable as a result of the service of a
                  Note Enforcement Notice or if the Intercompany Loan of any
                  Funding Issuer has (and the other Intercompany Loans of any
                  other Funding Issuers have) become immediately due and
                  payable as a result of the service of an Intercompany Loan
                  Enforcement Notice on Funding, then for the purpose of
                  calculating the amount in respect of that Funding Issuer
                  under paragraph (C)(1)(b) above, that amount may be reduced
                  to the extent of any remaining amounts standing to the
                  credit of the Issuer Reserve Ledger and/or the Issuer
                  Liquidity Reserve Ledger (if any) for that Funding Issuer
                  which are to be utilised on the immediately succeeding
                  Payment Date to repay principal on that Funding Issuer's
                  Intercompany Loan, but only to the extent that those amounts
                  would not otherwise be payable on that Funding Intercompany
                  Loan on that Payment Date.

            (b)   If the Notes of any Funding 2 Issuer have become immediately
                  due and payable as a result of the service of an Issuer
                  Enforcement Notice or if the Intercompany Loan of any
                  Funding 2 Issuer has (and the Intercompany Loans of any
                  other Funding 2 Issuers have) become immediately due and
                  payable as a result of the service of an Intercompany Loan
                  Enforcement Notice on Funding 2, then for the purpose of
                  calculating the amount under paragraph (C)(2)(b) above, that
                  amount will be reduced to the extent of any remaining
                  amounts standing to the credit of the Funding 2 Reserve
                  Ledger and/or the Funding 2 Liquidity Reserve Ledger] (if
                  any) which are to be utilised on the immediately succeeding
                  Payment Date to repay principal on that Funding 2 Issuer's
                  Intercompany Loan, but only to the extent that those amounts
                  would not otherwise be payable on any Funding 2 Intercompany
                  Loan on that Payment Date.

      (3)   (a)   The amount of Mortgages Trustee Principal Receipts
                  payable to Funding in respect of each Funding Issuer on a
                  Distribution Date will be reduced in proportion to the
                  aggregate of the Issuer Available Revenue Receipts of that
                  Funding Issuer which are to be applied on the

                                      36
<PAGE>

                  immediately succeeding Payment Date in reduction of
                  deficiencies recorded on the Issuer Principal Deficiency
                  Ledger of that Funding Issuer, but only to the extent that
                  the Funding Issuer Available Revenue Receipts which are to
                  be so applied on that Payment Date would not otherwise be
                  payable as principal on the relevant Notes on that Payment
                  Date.

            (b)   The amount of Mortgages Trustee Principal Receipts payable
                  to Funding 2 on a Distribution Date will be reduced in
                  proportion to the aggregate of Mortgages Trustee Available
                  Revenue Receipts allocable to Funding 2 on such Distribution
                  Date which are to be applied on the immediately succeeding
                  Payment Date in reduction of deficiencies recorded on the
                  Funding 2 Principal Deficiency Ledger, but only to the
                  extent that the Mortgages Trustee Available Revenue Receipts
                  which are to be so applied on that Payment Date would not
                  otherwise be payable as principal of the relevant Notes to
                  be paid on that Payment Date.

      (4)   For the purpose of determining the Mortgages Trustee Principal
            Receipts to be distributed to Funding in respect of the amount due
            on the Intercompany Loan of any Funding Issuer under (B) and (D)
            above, the Outstanding Principal Balance of that Intercompany Loan
            shall be deemed to be reduced by the amount of:

            (a)   any deficiency recorded on the Issuer Principal Deficiency
                  Ledger of that Issuer as at that Distribution Date, but only
                  to the extent that such deficiency has arisen under a result
                  of (i) Losses on the Mortgage Loans allocated by Funding to
                  that Issuer and/or (ii) the application of Funding Available
                  Principal Receipts to fund the Issuer Liquidity Reserve Fund
                  of that Issuer but not as a result of any other principal
                  deficiency of that Issuer; and

            (b)   the Outstanding Principal Balance as at such Distribution
                  Date of any Special Repayment Notes issued by that Issuer

      (5)   Funding will not be entitled to receive and the Cash Manager shall
            procure that Funding does not receive any amount of Mortgages
            Trustee Principal Receipts from the Mortgages Trustee on a
            Distribution Date which is not required by Funding to repay
            principal falling due on any Intercompany Loan on the immediately
            succeeding Payment Date in order to fund payments of principal
            falling due on any Notes issued by any Issuer on that Payment
            Date.

      (6)   The Mortgages Trustee will not distribute any Overpayment (other
            than a Capital Payment) in respect of any Non-Flexible Mortgage
            Loan until the first Distribution Date following December 31 of
            the year in which such Overpayment is received; provided that if a
            Borrower has made an Underpayment of principal in respect of such
            Non-Flexible Mortgage Loan following the Overpayment then the
            Mortgages Trustee will distribute principal in an amount up to the
            amount of such Underpayment (but not exceeding the amount of the
            Overpayment previously made) on the immediately succeeding
            Distribution Date.

                                      37
<PAGE>

      (7)   On a Seller Share Event Distribution Date, the Cash Manager shall
            not distribute the remaining Mortgages Trustee Principal Receipts
            to the Seller and shall deposit all Mortgages Trustee Retained
            Principal Receipts in the Mortgages Trustee GIC Account and make a
            corresponding credit to the Mortgages Trustee Principal Ledger.

11.2  Distribution of Mortgages Trustee Principal Receipts on or after the
      occurrence of an Asset Trigger Event

      On or after the occurrence of an Asset Trigger Event, the Cash Manager
      (at the direction of the Mortgages Trustee acting on behalf of the
      Beneficiaries at their direction and with their consent which is hereby
      given) shall, on each Distribution Date (including, if applicable, any
      Distribution Date on which an Asset Trigger Event occurs), allocate and
      distribute all Mortgages Trustee Principal Receipts as follows:

      (a)   if the immediately preceding Distribution Date was a Seller Share
            Event Distribution Date, all of the Mortgages Trustee Retained
            Principal Receipts to Funding and Funding 2 in no order of
            priority among them and pro rata in accordance with the Funding
            Proportion and the Funding 2 Proportion; and then

      (b)   among Funding, Funding 2 and the Seller, in no order of priority
            among them and pro rata according to their respective Shares of
            the Trust Property until the Funding Share and the Funding 2 Share
            of the Trust Property are reduced to zero (and, for the avoidance
            of doubt, such payments may reduce the Seller Share of the Trust
            Property to an amount less than the Minimum Seller Share).
            Notwithstanding the foregoing, if an Assignment Date or a
            Contribution Date has occurred during the Trust Calculation Period
            immediately preceding any such Distribution Date, the Cash Manager
            will apply all Mortgages Trustee Principal Receipts remaining
            after (a) above among Funding, Funding 2 and the Seller in no
            order of priority between them but in proportion to the Weighted
            Average Funding Share Percentage, the Weighted Average Funding 2
            Share Percentage and the Weighted Average Seller Share Percentage,
            each in respect of Mortgages Trustee Principal Receipts, for that
            Distribution Date until the Funding Share and Funding 2 Share of
            the Trust Property is zero.

11.3  Distribution of Principal Receipts on or after the occurrence of a
      Non-Asset Trigger Event

      On or after the occurrence of a Non-Asset Trigger Event and until the
      occurrence of an Asset Trigger Event, the Cash Manager (at the direction
      of the Mortgages Trustee acting on behalf of the Beneficiaries at their
      direction and with their consent which is hereby given) shall, on each
      Distribution Date (including, if applicable, any Distribution Date on
      which a Non-Asset Trigger Event occurs), apply all Mortgages Trustee
      Principal Receipts to Funding and Funding 2 in no order of priority
      among them and pro rata in accordance with the Funding Proportion and
      the Funding 2 Proportion until the Funding Share and the Funding 2 Share
      of the Trust Property have been reduced to zero and shall thereafter, on
      each Distribution Date, apply all Mortgages Trustee Principal Receipts
      to the Seller.

                                      38
<PAGE>

12.   Allocation of Losses

12.1  Subject as provided otherwise herein (including Clause 8.5 (Adjustments
      to Trust Property) of this Deed), all Losses sustained on the Mortgage
      Loans (other than any Personal Secured Loans) during a Trust Calculation
      Period shall be applied in reducing pro rata the Funding Share of the
      Trust Property, the Funding 2 Share of the Trust Property and the Seller
      Share of the Trust Property on the Distribution Date immediately
      succeeding such Trust Calculation Period by multiplying the Losses
      sustained in the relevant Trust Calculation Period by the Funding Share
      Percentage and the Funding 2 Share Percentage, respectively, (in each
      case as calculated on the Distribution Date immediately preceding such
      Trust Calculation Period) until the Funding Share of the Trust Property
      and the Funding 2 Share of the Trust Property are both zero, PROVIDED
      THAT if during the Trust Calculation Period immediately preceding a
      Distribution Date the Seller has sold and assigned New Mortgage Loans to
      the Mortgages Trustee or if Funding or Funding 2 made a Further
      Contribution to the Mortgages Trustee to increase the Funding Share or
      the Funding 2 Share of the Trust Property, such Losses shall be
      multiplied by the Weighted Average Funding Share Percentage and the
      Weighted Average Funding 2 Share Percentage, as applicable (in each case
      as calculated on such Distribution Date pursuant to Clause 8.3(A)(3) or
      8.3(B)(3) above) rather than the Funding Share Percentage and/or the
      Funding 2 Share Percentage. The remainder of such Losses shall be
      allocated to the Seller.

12.2  All losses sustained during a Trust Calculation Period on Personal
      Secured Loans forming part of the Trust Property shall be applied first
      to reduce the Seller Share of the Trust Property (including, for the
      avoidance of doubt, that portion of the Seller Share which represents
      the Minimum Seller Share) on the Distribution Date immediately
      succeeding such Trust Calculation Period until the Seller Share is zero
      and thereafter shall be applied to reduce the Funding Share and the
      Funding 2 Share of the Trust Property on a pro rata basis in accordance
      with the Funding Proportion and the Funding 2 Proportion.

13.   Overpayments

13.1  Non-Flexible Mortgage Loans

      The Mortgages Trustee shall not distribute to the Beneficiaries any
      Overpayment in respect of any Non-Flexible Mortgage Loan which does not
      constitute a Capital Payment until the first Distribution Date following
      31st December of the year in which such Overpayment is received, save to
      the extent that any such Overpayment by a Borrower is applied in
      reduction of an Underpayment by such Borrower in respect of such
      Mortgage Loan prior to such date. Any such Overpayment shall be retained
      in the Mortgages Trustee GIC Account and the Cash Manager will maintain
      a separate ledger to record its receipt and subsequent payment from time
      to time. Where any such Overpayment has been made in error the Cash
      Manager and/or the Administrator will be authorised to refund the amount
      of such Overpayment to the relevant Borrower at any time prior to 31st
      December of the year in which such Overpayment was made.

                                      39
<PAGE>

13.2  Flexible Mortgage Loans

      Overpayments in respect of any Flexible Mortgage Loan (including the
      amount of any Together Connections Benefit applied to the related
      Together Connections Mortgage Loans or any Connections Benefit applied
      to the related Connections Mortgage Loans) will not be retained in the
      Mortgages Trustee GIC Account but will be distributed to the
      Beneficiaries on the immediately succeeding Distribution Date as
      Principal Receipts.

14.   Arrears

      The aggregate Current Balance of the Mortgage Loans in the Mortgages
      Trust will be increased at any time by the amount in which the Mortgage
      Loans that have been sold and assigned to the Mortgages Trustee are in
      arrears and those arrears have been capitalised. Such increase shall be
      allocated to the Beneficiaries at any time in proportion to their
      respective percentage shares in the Trust Property as determined in
      respect of the Trust Calculation Period or Interim Calculation Period,
      as the case may be, in which the arrears occur.

15.   Ledgers

      The Mortgages Trustee shall maintain, or shall procure that the Cash
      Manager shall maintain, the following Mortgages Trustee Ledgers:

      (a)   the Principal Ledger, which shall record (i) all receipts of
            Principal Receipts and distribution of the same to Funding,
            Funding 2 and the Seller and (ii) any Mortgages Trustee Retained
            Principal Receipts;

      (b)   the Revenue Ledger, which shall record all receipts of Revenue
            Receipts and distribution of the same in accordance with this
            Deed;

      (c)   the Losses Ledger, which shall record Losses in relation to the
            Mortgage Loans;

      (d)   the Funding Share/Funding 2 Share/Seller Share Ledger which shall
            record the Funding Share, the Funding 2 Share and the Seller Share
            of the Trust Property, and the Funding Share Percentage, the
            Funding 2 Share Percentage and the Seller Share Percentage;

      (e)   the Overpayments Ledger; which shall be divided into sub ledgers
            to record (i) Overpayments on Non-Flexible Mortgage Loans received
            into and paid out of the Mortgages Trustee GIC Account from time
            to time and (ii) Overpayments on Flexible Mortgage Loans;

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

      (g)   the Re-Draw Ledger, which shall be divided into sub ledgers to
            record (i) Cash Re-Draws made in respect of Flexible Mortgage
            Loans and (ii) Non-Cash Re-Draws made in respect of Flexible
            Mortgage Loans;

                                      40
<PAGE>

      (h)   the Contributions Ledger, which will be divided into sub ledgers
            to record (i) the making by Funding of Contributions to the
            Mortgages Trust, (ii) the making by Funding 2 of Contributions to
            the Mortgages Trust, (iii) the making by the Seller of
            Contributions to the Mortgages Trust and the application of such
            Contributions by the Mortgages Trustee in payment to the Seller of
            (a) amounts of Initial Purchase Price for the sale of any New
            Mortgage Portfolio which is acquired by the Mortgages Trustee from
            the Seller under the provisions of the Mortgage Sale Agreement or
            (b) amounts of Deferred Purchase Price in accordance with the
            Mortgage Sale Agreement or (c) any Special Distribution in
            accordance with the terms of this Deed and the application of such
            Contributions by the Mortgages Trustee in payment to Funding of
            any Special Distribution in accordance with the terms of this
            Deed; and

      (i)   the Further Draw Ledger, which shall record all Further Draws in
            relation to Personal Secured Loans.

16.   Fees and Expenses of the Mortgages Trustee

16.1  Remuneration

      The Mortgages Trustee shall be entitled to charge and be remunerated for
      the work undertaken by it as trustee of the trusts created by this Deed.
      The remuneration shall be on such terms (if any) as the Mortgages
      Trustee may from time to time agree with the Beneficiaries in writing.

16.2  Expenses and Liabilities

      Each Beneficiary shall indemnify the Mortgages Trustee from time to time
      with such regularity as is reasonably agreed between the parties, in
      respect of the Funding Share, the Funding 2 Share and the Seller Share,
      respectively, of the documentable costs, expenses and/or liabilities
      directly and properly incurred by the Mortgages Trustee in performing
      its obligations hereunder or otherwise in acting as trustee in
      accordance with the terms of this Deed and the other Transaction
      Documents to which the Mortgages Trustee is a party inclusive (if
      applicable) of any amounts in respect of Irrecoverable VAT incurred in
      respect of such costs and expenses.

17.   BENEFICIARY Directions

17.1  Administration Agreement and Cash Management Agreement

      On the Initial Closing Date the Mortgages Trustee shall enter into the
      Administration Agreement and the Cash Management Agreement.

17.2  Directions from Beneficiaries

      Subject to Clause 17.3 (No Breach) below and to any agreement between
      the Beneficiaries, the Mortgages Trustee covenants with the
      Beneficiaries that the Mortgages Trustee shall take all necessary steps
      and do everything which the Funding Beneficiaries and the Seller (acting
      together) may reasonably request or direct it to do in order to give
      effect to the terms of this Deed or the other Transaction Documents to
      which the Mortgages Trustee is a party; provided that at any time after
      the Funding

                                      41
<PAGE>

      Share and the Funding 2 Share have both been reduced to zero the
      Mortgages Trustee shall not be required to act at the direction of the
      Funding Beneficiaries and the Seller (acting together) and shall instead
      act in accordance with any direction given solely by the Seller.

17.3  No breach

      Each of Funding, Funding 2 and the Seller covenants with each other and
      with the Mortgages Trustee that none of them shall direct or request the
      Mortgages Trustee to do any act or thing which breaches the terms of, or
      is otherwise expressly dealt with (such that the Mortgages Trustee has
      no discretion) under any of the Transaction Documents.

17.4  Mortgages Trustee entitled to decline to follow directions

      The Mortgages Trustee shall have the right to decline to follow any such
      direction if the Mortgages Trustee, being advised by counsel, determines
      that the proceedings, actions or steps may not be lawfully taken or if
      the Mortgages Trustee in good faith determines that the proceedings,
      actions or steps so directed would be illegal or involve it in personal
      liability

17.5  Mortgages Trustee to provide information

      When the Mortgages Trustee is required to take any proceedings, actions
      or steps under or in connection with the Transaction Documents for which
      it requires directions from the Funding Beneficiaries and the Seller, it
      shall as soon as reasonably practicable, provide sufficient information
      to the Funding Beneficiaries and the Seller as they may require in order
      to be able to give such directions.

17.6  Timing of directions

      Where a Beneficiary directs the Mortgages Trustee as to any mater, such
      Beneficiary shall give written particulars of such direction to the
      Mortgages Trustee and each other Beneficiary. If the Mortgages Trustee
      does not receive any directions from such other Beneficiaries in respect
      of such matter by 10 a.m. on the second London Business Day following
      receipt by such other Beneficiary of such written notice (in accordance
      with Clause 34 (Notices), such other Beneficiary shall be deemed to have
      directed the Mortgages Trustee to follow such direction.

17.7  Controlling Directions

      In the event of any conflict between the directions of the Beneficiaries
      (including any deemed direction) then each Beneficiary irrevocably
      agrees that the Controlling Directions shall apply and as such, the
      Mortgages Trustee is to follow the Controlling Directions as if it were
      the direction of all Beneficiaries but if there is no Controlling
      Directions the Mortgages Trustee shall not act.

17.8  No requirement to act

      The Mortgages Trustee will not be bound and shall have no power to take
      any proceedings, actions or steps under or in connection with any of
      this Deed or the other Transaction Documents to which it is a party
      unless:

                                      42
<PAGE>

      (a)   it shall have been directed to do so by the Beneficiaries or it is
            required to do so under any express provision of this Deed or the
            other Transaction Documents (but subject to Clause 17.2
            (Directions from Beneficiaries) in respect of conflict of
            directions); and

      (b)   it shall have been indemnified to its satisfaction against all
            liabilities, proceedings, claims and demands to which it may be or
            become liable and all costs, charges and expenses which may be
            incurred by it in connection therewith and the terms of such
            indemnity may include the provision of a fighting fund,
            non-recourse loan or other similar arrangement.

17.9  Covenant of the Mortgages Trustee

      Subject to Clause 17.2 (Directions from Beneficiaries) the Mortgages
      Trustee covenants with each of the Seller, Funding and Funding 2 to
      exercise all of its rights arising under or in respect of the Trust
      Property (including without limitation any rights of enforcement) for
      the benefit of and on behalf of the Beneficiaries.

17.10 Mortgages Trustee not liable

      Provided that the Mortgages Trustee has complied with the provisions of
      this Clause 17 (Beneficiary directions), the Mortgages Trustee shall not
      be liable to the Beneficiaries notwithstanding that the way in which the
      relevant discretion, trust, power or remedy was exercised by the
      Mortgages Trustee did not reflect the particular wishes of any
      Beneficiary.

18.   Early Termination of the Mortgages Trust

      Prior to its termination in accordance with Clause 26 (Termination),
      provided that all amounts due from Funding to the Funding Secured
      Creditors have been repaid in full and the Funding Share of the Trust
      Property has been reduced to zero, and further provided that all amounts
      due from Funding 2 to the Funding 2 Secured Creditors have been repaid
      in full and the Funding 2 Share of the Trust Property has been reduced
      to zero, the Mortgages Trust constituted by this Deed may be terminated
      at the option of the Seller, following a request in writing by the
      Seller to the Mortgages Trustee (which shall be copied to Funding,
      Funding 2 and the Cash Manager) at any time on or after the date on
      which all of the Intercompany Loans have been repaid in full or there is
      no further claim under any Intercompany Loan or such other date as may
      be agreed in writing between the Mortgages Trustee, Funding, Funding 2
      and the Seller.

19.   AUdit of Mortgage Loans Constituting the Trust Property

      If the long term, unsecured, unguaranteed and unsubordinated debt
      obligations of the Seller fall below A3 by Moody's then, if required by
      Moody's, the Beneficiaries shall appoint a firm of independent auditors
      (approved by the Rating Agencies) to determine whether the Mortgage
      Loans and their Related Security (or any part of them) constituting the
      Trust Property complied with the representations and warranties set out
      in Schedule 1 (Representations and Warranties) of the Mortgage Sale
      Agreement as at the date such Mortgage Loans were sold and assigned to
      the Mortgages Trustee. The costs of such independent auditors shall be
      borne by the

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      Beneficiaries pro rata according to their respective current percentage
      shares in the Trust Property.

20.   Transfers

20.1  Funding shall not assign

      Subject to the right of Funding to assign by way of security its right,
      title, benefit and interest in the Trust Property and/or under this Deed
      to the Security Trustee under the Funding Deed of Charge and subject to
      the right of the Security Trustee or a Receiver to sell the Funding
      Share of the Trust Property and/or such right and interest under this
      Deed following the service on Funding of an Intercompany Loan
      Enforcement Notice (which right is hereby conferred), Funding covenants
      with each of the Seller and Funding 2 that it shall not, and shall not
      purport to, sell, assign, transfer, convey, charge, declare a trust
      over, create any beneficial interest in, or otherwise dispose of the
      Funding Share in the Trust Property, or any of Funding's rights, title,
      interest or benefit in any of the Mortgage Portfolio or the Trust
      Property.

20.2  Funding 2 shall not assign

      Subject to the right of Funding 2 to assign by way of security its
      right, title, benefit and interest in the Trust Property and/or under
      this Deed to the Funding 2 Security Trustee under the Funding 2 Deed of
      Charge and subject to the right of the Funding 2 Security Trustee or a
      Receiver to sell the Funding 2 Share of the Trust Property and/or such
      right and interest under this Deed following the service on Funding 2 of
      an Intercompany Loan Enforcement Notice (which right is hereby
      conferred), Funding 2 covenants with each of the Seller and Funding that
      it shall not, and shall not purport to, sell, assign, transfer, convey,
      charge, declare a trust over, create any beneficial interest in, or
      otherwise dispose of the Funding 2 Share in the Trust Property, or any
      of Funding 2's rights, title, interest or benefit in any of the Mortgage
      Portfolio or the Trust Property.

20.3  Seller shall not assign

      The Seller covenants with each of Funding and Funding 2 that it shall
      not, and shall not purport to, sell, assign, transfer, convey, charge,
      declare a trust over, create any beneficial interest in, or otherwise
      dispose of the Seller Share in the Trust Property or any of the Seller's
      rights, title, interest or benefit in the Trust Property, other than
      pursuant to the Transaction Documents.

21.   Representations and Covenants

21.1  Representations

      On the date hereof, each of the parties to this Deed makes the
      representations and warranties set out in Schedule 1 (Representation and
      Warranties) to this Deed to each of the other parties hereto.

21.2  Covenants of the Mortgages Trustee

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<PAGE>

      Save with the prior written consent of or at the direction of the
      Beneficiaries or as provided in or envisaged by this Deed and/or the
      other Transaction Documents, the Mortgages Trustee shall not, so long as
      it is acting as Mortgages Trustee hereunder:

      (a)   Negative Pledge: create or permit to subsist any mortgage,
            standard security, pledge, lien, charge or other security interest
            whatsoever (unless arising by operation of law), upon the whole or
            any part of its assets (including any uncalled capital) or its
            undertakings (present or future) or (to the extent that it is
            within the control of the Mortgages Trustee) upon the whole or any
            part of the Trust Property;

      (b)   Disposal: transfer, sell, lend, part with or otherwise dispose of,
            or deal with, or grant any option or present or future right to
            acquire any of its assets or undertakings or (to the extent that
            it is within the control of the Mortgages Trustee) the Trust
            Property or any interest, estate, right, title or benefit therein
            or thereto or agree or attempt or purport to do so;

      (c)   Equitable Interest: knowingly permit any person other than the
            Beneficiaries to have any equitable or beneficial interest in any
            of its assets or undertakings or (to the extent that it is within
            the control of the Mortgages Trustee) the Trust Property or any
            interest, estate, right, title or benefit therein;

      (d)   Bank Accounts: have an interest in any bank account, other than as
            set out in the Transaction Documents.

      (e)   Restrictions on Activities: carry on any business other than as
            described in this Deed and the Transaction Documents;

      (f)   Borrowings: incur any indebtedness in respect of borrowed money
            whatsoever or give any guarantee or indemnity in respect of any
            such indebtedness;

      (g)   Merger: consolidate or merge with any other person or convey or
            transfer its properties or assets substantially or as an entirety
            to any other person;

      (h)   Premises or Employees: have any premises or employees or
            subsidiaries; or

      (i)   Further shares: issue any further shares;

      (j)   United States activities: engage in any activities in the United
            States (directly or through agents) or derive any income from
            United States sources as determined under United States income tax
            principles or 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;

      (k)   Conduct of affairs: take any management decisions or direct the
            conduct of its affairs in any Member State of the European Union,
            including holding any board meetings in any Member State of the
            European Union.

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22.   Power to Delegate

22.1  Power to delegate

      Subject to Clause 22.2 (No further appointments), the Mortgages Trustee
      may (notwithstanding any rule of law or equity to the contrary) delegate
      (revocably or irrevocably and for a limited or unlimited period of time)
      the performance of all or any of its obligations and the exercise of all
      or any of its powers under this Deed or imposed or conferred on it by
      law or otherwise to any person or body of persons fluctuating in number
      selected by it and any such delegation may be by power of attorney or in
      such other manner as the Mortgages Trustee may think fit and may be made
      upon such terms and conditions (including the power to sub-delegate) as
      the Mortgages Trustee may think fit.

22.2  No further appointments

      Notwithstanding the provisions of Clause 22.1 (Power to delegate), the
      Mortgages Trustee shall not appoint any agent, attorney or other
      delegate having power to act in respect of the Trust Property unless it
      is directed in writing to do so by the Beneficiaries. The appointment of
      any agent, attorney or other delegate hereunder above shall terminate
      immediately upon the occurrence of a Trigger Event.

23.   Power of Investment

      The Mortgages Trustee may invest, and may appoint the Cash Manager to
      invest on its behalf, any amounts standing to the credit of the
      Mortgages Trustee Transaction Account in Authorised Investments. Save as
      expressly provided in this Deed, the Mortgages Trustee Guaranteed
      Investment Contract and the Bank Account Agreement, the Mortgages
      Trustee shall have no further or other powers of investment with respect
      to the Trust Property and (to the extent permitted by applicable law)
      the Trustee Act 2000 shall not nor shall any other provision relating to
      trustee powers of investment implied by statute or general law shall
      apply to the Mortgages Trust.

24.   Other Provisions Regarding the Mortgages Trustee

24.1  No action to impair Trust Property

      Except for actions expressly authorised by this Deed, the Mortgages
      Trustee shall take no action reasonably likely to impair the interests
      of the Beneficiaries in any Trust Property now existing or hereafter
      created or to impair the value of any Mortgage Loan or its Related
      Security subject to the Mortgages Trust.

24.2  Litigation

      The Mortgages Trustee must not prosecute or defend any legal or other
      proceedings anywhere in the world (at the cost of the Trust Property)
      unless it obtains legal or other advice that it is in the interests of
      the Beneficiaries to do so.

24.3  No Implied Duties

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<PAGE>

      The duties and obligations of the Mortgages Trustee under the Mortgages
      Trust shall be determined solely by the express provisions of this Deed
      (but without prejudice to the duties and obligations of the Mortgages
      Trustee under any of the other Transaction Documents). The Mortgages
      Trustee shall not be liable under this Deed except for the performance
      of such duties and obligations as shall be specifically set forth in
      this Deed. No implied covenants or obligations shall be read into this
      Deed against the Mortgages Trustee, and the permissible right of the
      Mortgages Trustee to do things set out in this Deed shall not be
      construed as a duty.

24.4  No Liability

      Neither the Mortgages Trustee, Funding (in its capacity as a Beneficiary
      hereunder), Funding 2 (in its capacity as a Beneficiary hereunder) nor
      the Seller (in its capacity as a Beneficiary hereunder) shall be liable
      to each other, in the absence of wilful default, gross negligence or
      breach of the terms of this Deed, in respect of any loss or damage which
      arises out of the exercise or attempted or purported exercise or failure
      to exercise any of their respective powers.

24.5  Reliance on Certificates

      The Mortgages Trustee may rely on and shall be protected in acting on,
      or in refraining from acting in accordance with, any resolution,
      officer's certificate, certificate of auditors or any other certificate,
      statement, instrument, opinion, report, notice, request, consent, order,
      appraisal, bond or other paper or document believed by it to be genuine
      and to have been signed or presented to it pursuant to the Transaction
      Documents by the proper party or parties.

24.6  Reliance on Third Parties

      The Mortgages Trustee may, in relation to these presents, act on the
      opinion or advice of or a certificate or any information obtained from
      any lawyer, banker, valuer, broker, accountant, financial adviser,
      securities dealer, merchant bank, computer consultant or other expert in
      the United Kingdom or elsewhere and shall not, provided that it shall
      not have acted fraudulently or in breach of any of the provisions of the
      Transaction Documents, be responsible for any loss occasioned by so
      acting. Any such opinion, advice, certificate or information may be sent
      or obtained by letter, telemessage, telex, cable or facsimile device and
      the Mortgages Trustee shall not be liable for acting on any opinion,
      advice, certificate or information purporting to be so conveyed although
      the same shall contain some error or shall not be authentic, provided
      that such error or lack of authenticity shall not be manifest.

24.7  MIG Policies

      The Mortgages Trustee is not required to maintain any MIG Policy with
      the then-current insurer and may contract for mortgage indemnity
      guarantee protection from any insurer then providing MIG insurance
      policies, subject to prior agreement with the Rating Agencies and
      confirmation that the then-current ratings by the Rating Agencies (or
      any of them) of the Notes issued by any Issuer would not be adversely
      affected.

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<PAGE>

25.   No Retirement of Mortgages Trustee

25.1  No Retirement

      The Mortgages Trustee shall not, and shall not purport to, retire as the
      trustee of the Mortgages Trust or appoint any additional trustee of the
      Mortgages Trust and shall have no power to retire or appoint any
      additional trustee under the Trustee Act 1925 or otherwise.

25.2  No Replacement

      Neither the Seller, Funding nor Funding 2 shall at any time remove or
      purport to remove and/or replace the Mortgages Trustee as the trustee of
      the Mortgages Trust.

25.3  No Termination

      Prior to the payment by Funding and Funding 2 of all amounts owing under
      the Funding Intercompany Loan Agreements and/or the Funding 2
      Intercompany Loan Agreements, as applicable, and under the Transaction
      Documents, neither the Seller, Funding nor Funding 2 shall at any time,
      except in accordance with the provisions of Clause 18 (Early Termination
      of the Mortgages Trust) and Clause 26 (Termination), terminate or
      purport to terminate the Mortgages Trust and, in particular, but without
      prejudice to the generality of the foregoing, the Seller, Funding and
      Funding 2 shall not in reliance on their absolute beneficial interests
      in the Trust Property call for the transfer to them or vesting in them
      of the legal estate in all or any part of the Trust Property.

26.   Termination

      Subject to Clause 18 (Early Termination of the Mortgages Trust), the
      Mortgages Trust hereby constituted shall terminate upon the date upon
      which the Trust Property is zero.

27.   Further Assurances

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

28.   No Partnership or Agency

      Nothing in this Deed shall be taken to constitute or create a
      partnership between any of the parties to this Deed or to make or
      appoint the Seller the agent of Funding (or vice versa) or the agent of
      Funding 2 (or vice versa) or Funding the agent of Funding 2 (or vice
      versa).

29.   Calculations

      In the absence of manifest error, any determination or calculation by or
      on behalf of the Mortgages Trustee in connection with the provisions of
      this Deed shall be deemed to be conclusive.

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<PAGE>

30.   Confidentiality

30.1  General Obligation of Confidentiality

      Unless otherwise required by applicable law, and subject to Clause 30.2
      (Exceptions) below, each of the parties agrees to maintain the
      confidentiality of this Deed in its communications with third parties
      and otherwise. None of the parties shall disclose to any person any
      information relating to the business, finances or other matters of a
      confidential nature of or relating to any other party to this Deed or
      any of the Transaction Documents which it may have obtained as a result
      of having entered into this Deed or otherwise.

30.2  Exceptions

      The provisions of Clause 30.1 (General Obligation of Confidentiality)
      above shall not apply:

      (a)   to the disclosure of any information to any person who is a party
            to any of the Transaction Documents as expressly permitted by the
            Transaction Documents;

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

      (c)   to the extent that the recipient is required to disclose the same
            pursuant to any law or order of any court or pursuant to any
            direction or requirement (whether or not having the force of law)
            of any central bank or any governmental or other regulatory or
            Taxation authority;

      (d)   to the disclosure of any information to professional advisers who
            receive the same under a duty of confidentiality;

      (e)   to the disclosure of any information with the consent of the
            parties hereto;

      (f)   to the disclosure to the Rating Agencies or any of them of such
            information as may be requested by any of them for the purposes of
            setting or reviewing the rating assigned to the Notes (or any of
            them), provided that no information which would disclose the
            identity of a Borrower shall be disclosed to the Rating Agencies
            or any of them;

      (g)   to the disclosure of any information disclosed to a prospective
            assignee of Funding or Funding 2 (provided that it is disclosed on
            the basis that the recipient will hold it confidential); or

      (h)   to any disclosure for the purposes of collecting in or enforcing
            the Trust Property or any of it.

31.   Non Petition Covenant; Limited Recourse

31.1  Non Petition Covenant

      Each of the parties hereto hereby agrees that it shall not institute
      against either Funding, Funding 2 or the Mortgages Trustee any
      winding-up, administration,

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<PAGE>

      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.

31.2  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 Deed under this Deed
            not being an amount payable out of the Trust Property in
            accordance with the terms of this 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 this Deed;
            and

      (b)   in relation to Funding:

            (A)   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;

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

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

      (c)   in relation to Funding 2:

            (A)   only the Funding 2 Security Trustee may enforce the security
                  created in favour of the Funding 2 Security Trustee under
                  the Funding 2 Deed of Charge in accordance with the
                  provisions thereof;

            (B)   notwithstanding any other provision of this Deed or any
                  other Transaction Document, no sum due or owing to any party
                  to this Deed from or by Funding 2 under this Deed shall be
                  payable by Funding 2 except to the extent that Funding 2 has
                  sufficient funds available or (following enforcement of the
                  Funding 2 Security) the Funding 2 Security Trustee has
                  realised sufficient funds from the Funding 2 Security to pay
                  such sum subject to and in accordance with the relevant
                  Funding 2 Priority of Payments and provided that all
                  liabilities of

                                      50
<PAGE>

                  Funding 2 required to be paid in priority thereto or pari
                  passu therewith pursuant to such Funding 2 Priority of
                  Payments have been paid, discharged and/or otherwise
                  provided for in full; and

            (C)   it shall not take any steps for the purpose of recovering
                  any amount payable by Funding 2 or enforcing any rights
                  arising out of this Deed against Funding 2 otherwise than in
                  accordance with the Funding 2 Deed of Charge.

31.3  Corporate Obligations

      To the extent permitted by law, no recourse under any obligation,
      covenant, or agreement of any person contained in this Deed 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 Deed 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 Deed, 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 Deed.

32.   Amendments and Waiver

32.1  Entire Agreement

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

32.2  Amendments and Waiver

      No amendment or waiver of any provision of this Deed 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.

32.3  Rights cumulative

      The respective rights of each of the parties to this Deed 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 Deed are cumulative and not exclusive of any remedies provided by
      law.

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<PAGE>

33.   Notices

      Any notices or other communication or document to be given or delivered
      pursuant to this Deed 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 01534-609333) for the attention of the
            Company Secretary (with a copy to the Seller in accordance with
            (a) above);

      (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 (with a copy to the Seller in
            accordance with (a) above);

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

      (e)   in the case of Funding 2, to Granite Finance Funding 2 Limited
            situated at Fifth Floor, 100 Wood Street, London EC2V 7EX
            (facsimile number 020 7606 0643) for the attention of The Company
            Secretary (with a copy to the Seller in accordance with (a)
            above);

      (f)   in the case of the Funding 2 Security Trustee, to The Bank of New
            York, 48th Floor, One Canada Square, London, E14 5AL (facsimile
            number 020 7964 6399) for the attention of the Global Structured
            Finance (Corporate Trust);

      (g)   in the case of the Fitch Ratings Ltd, to Fitch Ratings Ltd, Eldon
            House, 2 Eldon Street, London EC2M 7UA (facsimile number 020 7417
            6262) for the attention of European Structured Finance
            Surveillance;

      (h)   in the case of Moody's, to Moody's, 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
            (with a copy to the Seller in accordance with (a) above);

      (i)   in the case of Standard & Poor's, to Standard & Poor's, 20 Cannon
            Square, Canary Wharf, London E14 5LH (facsimile number 020 7826
            3598) for the attention of Structured Finance Surveillance Group
            (with a copy to the Seller in accordance with (a) above),

                                      52
<PAGE>

      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 33.

34.   Third Party Rights

      A person who is not a party to this Deed 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.

35.   Execution in Counterparts; severability

35.1  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.

35.2  Severability

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

36.   Governing Law and Submission to Jurisdiction

36.1  Governing Law

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

36.2  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 Deed and, for such purposes, irrevocably submits to
      the jurisdiction of such courts.

36.3  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.

36.4  Forum

      Each of the parties hereto irrevocably waives any objection which it
      might now or hereafter have to the courts of England being nominated as
      the forum to hear and

                                      53
<PAGE>

      determine any Proceedings and to settle any disputes, and agrees not to
      claim that any such court is not a convenient or appropriate forum.

                                      54
<PAGE>

                                  SCHEDULE 1
                        REPRESENTATIONS AND WARRANTIES

1.    Status

      It is duly incorporated 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)   conflict with any document which is binding upon it or any of its
            assets;

      (b)   conflict with its constitutional documents; or

      (c)   conflict with any law, regulation, rule 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.

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<PAGE>

                                  Definitions

"Beneficiaries" means all of Funding, Funding 2 and the Seller together, as
beneficiaries of the Mortgages Trust and "Beneficiary" means any of them;

"Bullet Loan Tranche" means, in relation to Funding 2, any Loan Tranche which
is scheduled to be repaid in full on one Payment Date. Bullet Loan Tranches
will be deemed to be Pass-through Loan Tranches if:

(a)   a date specified in relation to the same in the applicable Loan Tranche
      Supplement occurs;

(b)   a Trigger Event occurs;

(c)   he Issuer Security, in respect of the Funding 2 Issuer which has funded
      such Bullet Loan Tranche, is enforced;

(d)   a Note Acceleration Notice is served in respect of the related Series
      and Class of Notes; or

(e)   a Step-Up Date (if any) in relation to such Loan Tranche occurs;

"Bullet Repayment Date" means, for any Bullet Loan Tranche, the Payment Date
specified as such for such Loan Tranche in the applicable Loan Tranche
Supplement.

"Bullet Repayment Loan Amount" means, in relation to Funding 2, the amount
required to be repaid on the Bullet Repayment Date in respect of a Bullet Loan
Tranche in order to pay such Bullet Loan Tranche in full;

"Cash Accumulation Period" means, in relation to an Original Bullet Loan
Tranche, the earliest to occur of :

(a)   the commencement of the Anticipated Cash Accumulation Period relating to
      the relevant Bullet Repayment Loan Amount; and

(b)   [six] months prior to the Scheduled Repayment Date of that Original
      Bullet Loan Tranche; and

ending when Funding 2 has fully repaid that Bullet Repayment Loan Amount.

"Cash Accumulation Requirement" means on a Trust Determination Date:

(a)   the outstanding principal amounts in relation to each Bullet Repayment
      Loan Amount that is within a Cash Accumulation Period;

(b)   plus amounts due on the next following Payment Date in items (A), (B)
      and (C) of the Funding 2 Pre-Enforcement Principal Priority of Payments;

(c)   less the amount standing to the credit of the Funding 2 Cash
      Accumulation Ledger at the last Payment Date (which amount was not to be
      distributed on that Payment Date to fund the Bullet Repayment Loan
      Amount of any Loan Tranche);

                                      56
<PAGE>

"Conditions" or "Terms and Conditions" means in relation to any Notes issued
by any Issuer, the terms and conditions to be endorsed (or incorporated by
reference) on such Notes in the form or substantially in the form scheduled to
the Trust Deed entered into by such Issuer with the Note Trustee, as any of
the same may from time to time be amended, varied or restated in accordance
with the provisions of such Trust Deed, and any reference to a numbered
Condition shall be construed accordingly;

"Contributions" means the consideration in the form of cash provided to the
Mortgages Trustee by any Beneficiary in respect of the share of such
Beneficiary in the Trust Property under the Mortgages Trust Deed, being any of
an Initial Contribution, a Further Contribution or a Deferred Contribution;

"Controlled Amortisation Loan Amount" means, in relation to Funding 2, for any
Controlled Amortisation Loan Tranche, on any Payment Date before the
occurrence of a Trigger Event or the enforcement of the [Issuer Security in
respect of the Funding 2 Issuer which has funded such Controlled Amortisation
Loan Tranche] and/or the Funding 2 Security, the maximum aggregate principal
amount which may be repaid by Funding 2 to such Issuer on that Payment Date;

"Controlled Amortisation Loan Tranches" means, in relation to Funding 2, any
Loan Tranche which by its terms imposes a limit on the amount of principal
which may be repaid on such Loan Tranche on any Payment Date. Controlled
Amortisation Loan Tranches will be deemed to be Pass-Through Loan Tranches if:

(a)   a date specified in relation to the same in the applicable Loan Tranche
      Supplement occurs;

(b)   a Trigger Event occurs;

(c)   the Issuer Security, in respect of the Funding 2 Issuer which has funded
      such Controlled Amortisation Loan Tranche, is enforced;

(d)   a Note Acceleration Notice is served in respect of the related Series
      and Class of Notes; or

(e)   a Step-Up Date (if any) in relation to such Loan Tranche occurs;

"Controlled Amortisation Requirement" means, in relation to Funding 2, on a
Trust Determination Date, the outstanding principal amounts in relation to
each Controlled Amortisation Loan Amount which is due on any of the three
Payment Dates immediately following such Trust Determination Date;

"Current Funding Share" means the amount of Trust Property beneficially owned
by Funding from time to time, as determined in accordance with Clause 8
(Adjustment of Funding Share Percentage, Funding 2 Share Percentage and Seller
Share Percentage) of the Mortgages Trust Deed;

"Current Funding 2 Share Percentage" means the percentage share of Funding in
the Trust Property from time to time, as determined in accordance with Clause
8 (Adjustment of Funding Share Percentage, Funding 2 Share Percentage and
Seller Share Percentage) of the Mortgages Trust Deed;

                                      57
<PAGE>

"Current Funding 2 Share" means the amount of Trust Property beneficially
owned by Funding 2 from time to time, as determined in accordance with Clause
8 (Adjustment of Funding Share Percentage, Funding 2 Share Percentage and
Seller Share Percentage) of the Mortgages Trust Deed;

"Current Funding Share 2 Percentage" means the percentage share of Funding 2
in the Trust Property from time to time, as determined in accordance with
Clause 8 (Adjustment of Funding Share Percentage, Funding 2 Share Percentage
and Seller Share Percentage) of the Mortgages Trust Deed;

"Current Seller Share" means the amount of Trust Property beneficially owned
by the Seller from time to time, as determined in accordance with Clause 8
(Adjustment of Funding Share Percentage, Funding 2 Share Percentage and Seller
Share Percentage) of the Mortgages Trust Deed;

"Current Seller Share Percentage" means the percentage share of the Seller in
the Trust Property from time to time as determined in accordance with Clause 8
(Adjustment of Funding Share Percentage, Funding 2 Share Percentage and Seller
Share Percentage) of the Mortgages Trust Deed;

"Deferred Contribution" means:

(a)   the consideration in the form of cash payable by Funding to the
      Mortgages Trustee from time to time in respect of the Funding Share of
      the Trust Property pursuant to and in accordance with the Mortgages
      Trust Deed and/or the Funding Deed of Charge including, for the
      avoidance of doubt, the Funding Final Deferred Contribution; and

(b)   the consideration in the form of cash payable by Funding 2 to the
      Mortgages Trustee from time to time in respect of the Funding 2 Share of
      the Trust Property pursuant to and in accordance with the Mortgages
      Trust Deed and/or the Funding 2 Deed of Charge including, for the
      avoidance of doubt, the Funding 2 Final Deferred Contribution,

which Contributions will fund the payment to the Seller by the Mortgages
Trustee of amounts of Deferred Purchase Price payable by the Mortgages Trustee
to the Seller from time to time pursuant to and in accordance with the
Mortgage Sale Agreement;

"Deferred Purchase Price" means that portion of the Purchase Price for the
sale and assignment of the Initial Mortgage Portfolio or of any New Mortgage
Portfolio sold and assigned to the Mortgages Trustee which is not paid to the
Seller [on the Initial Closing Date or, in the case of any New Mortgage
Portfolio, on the relevant Assignment Date or a Closing Date] and which is to
be paid by the Mortgages Trustee to the Seller from time to time from Deferred
Contributions received by the Mortgages Trustee from Funding and from Funding
2 and otherwise in accordance with the Mortgage Sale Agreement;

"Distribution Date" means the date on which the Mortgages Trust terminates and
the London Business Day as determined by the Cash Manager falling no later
than 6 Business Days after each Trust Determination Date;

"Event of Default" means, as the context requires, a Funding Event of Default
and/or a Funding 2 Event of Default;

                                      58
<PAGE>

"Final Deferred Contribution" means, as applicable, the Funding Final Deferred
Contribution and/or the Funding 2 Final Deferred Contribution;

"Funding Beneficiaries" means Funding and Funding 2, as beneficiaries of the
Mortgages Trust and "Funding Beneficiary" means either of them;

"Funding Event of Default" means, as the context requires, any of the
following:

(a)   in relation to the Notes issued by any Funding Issuer, a Note Event of
      Default pursuant to the Terms and Conditions of such Notes;

(b)   in relation to any Funding Intercompany Loan Agreement, the occurrence
      of an event of default pursuant to the terms of such Funding
      Intercompany Loan Agreement;

"Funding Intercompany Loan" means a loan of the net proceeds of any issue of
Notes by a Funding Issuer, such loan being advanced to Funding by such Funding
Issuer pursuant to the terms of a Funding Intercompany Loan Agreement;

"Funding Intercompany Loan Agreement" means an intercompany loan agreement
entered into between Funding and a Funding Issuer in relation to a Funding
Intercompany Loan;

"Funding Intercompany Loan Event of Default" means the occurrence of an event
of default as specified in Clause 14 (Default) of the Intercompany Loan Terms
and Conditions;

"Funding Issuer" means a wholly-owned subsidiary of Funding, which is
established to issue Notes and to make a Funding Intercompany Loan to Funding;

"Funding Proportion" means, on a Distribution Date, Assignment Date or
Contribution Date, an amount equal to:

                                      A
                                     ---
                                     A+B

      where:

      A  =  the Funding Share on that date; and

      B  =  the Funding 2 Share on that date;

"Funding Share" means, prior to the first Distribution Date, the Initial
Funding Share and thereafter means the Current Funding Share;

"Funding 2 Bank Accounts" means the Funding 2 GIC Account and the Funding 2
Transaction Account and each such additional or replacement account in the
name of Funding 2 that may be opened with the prior approval of the Funding 2
Security Trustee after the Funding Programme Date;

"Funding 2 Cash Accumulation Ledger" means the ledger on which the Cash
Manager will record the amounts accumulated by Funding 2 to pay Bullet
Repayment Loan Amounts;

"Funding 2 Deed of Charge" means the deed of charge entered into on or about
the Funding Programme Date between Funding 2, the Funding 2 Security Trustee,
the Issuer Security

                                      59
<PAGE>

Trustee, Granite Master Issuer plc, the Funding 2 Basis Rate Swap Provider,
the Corporate Services Provider, the Account Bank, the Funding 2 GIC Provider,
the Mortgages Trustee and the Cash Manager [others] and the Schedules thereto
and including each Deed of Accession or Accession Undertaking entered into in
connection therewith as may be amended, restated, novated, varied or
supplemented from time to time;

"Funding 2 Event of Default" means, as the context requires, any of the
following:

(a)   in relation to the Notes issued by any Funding 2 Issuer, a Note Event of
      Default pursuant to the Terms and Conditions of such Notes;

(b)   in relation to any Funding 2 Intercompany Loan Agreement, the occurrence
      of an event of default pursuant to the terms of such Funding 2
      Intercompany Loan Agreement;

"Funding 2 Intercompany Loan" means a loan (or the aggregate of a number of
separate loans) of the net proceeds of any issue (or all issues) of Notes by a
Funding 2 Issuer, such loan(s) being advanced to Funding 2 by such Funding 2
Issuer pursuant to the terms of a Funding 2 Intercompany Loan Agreement;

"Funding 2 Intercompany Loan Agreement" means an intercompany loan agreement
entered into between Funding 2 and a Funding 2 Issuer in relation to a Funding
2 Intercompany Loan;

"Funding 2 Intercompany Loan Event of Default" means, in relation to the
Global Intercompany Loan Agreement, the occurrence of an event of default
specified as such in Clause 15 (Default) of the Global Intercompany Loan
Agreement and, in relation to any other Funding 2 Intercompany Loan Agreement,
the occurrence of an event of default specified as such in such Funding 2
Intercompany Loan Agreement;

"Funding 2 Issuer" means a wholly-owned subsidiary of Funding 2, which is
established to issue Notes and to make a Funding 2 Intercompany Loan to
Funding 2;

"Funding 2 Liquidity Reserve Fund" means the liquidity reserve fund which
Funding 2 will be required to establish if the long term, unsecured,
unsubordinated and unguaranteed debt obligations of the Seller cease to be
rated at least A3 by Moody's or A- by Fitch (unless Moody's or Fitch, as
applicable, confirms that the then-current ratings of the Notes of any Funding
2 Issuer will not be adversely affected). The Funding 2 Liquidity Reserve
Fund, if any, will be funded to the relevant Funding 2 Liquidity Reserve
Required Amount;

"Funding 2 Liquidity Reserve Required Amount" means [o];

"Funding 2 Post-Enforcement Priority of Payments" means the rules and the
order of priority in which Funding 2 Available Revenue Receipts, Funding 2
Available Principal Receipts and all other monies, income, receipts and
recoveries of Funding 2 or the Funding 2 Security Trustee or any Receiver of
Funding 2 and the proceeds of enforcement of the Funding 2 Security are to be
applied following service of an Intercompany Loan Enforcement Notice or
otherwise following an enforcement of the Funding 2 Security as set out in
Part [_____] of Schedule [_____] (Funding 2 Priority of Payments) to the
Funding 2 Deed of Charge, as the same may be amended, varied or superseded
from time to time in accordance with the terms of the Funding 2 Deed of
Charge;

                                      60
<PAGE>

"Funding 2 Pre-Enforcement Principal Priority of Payments" means the rules and
the order of priority in which Funding 2 Available Principal Receipts will be
applied prior to the enforcement of the Funding 2 Security as set out in Part
[_____] of Schedule [_____] (Funding 2 Priority of Payments) to the Funding 2
Deed of Charge, as the same may be amended, varied or superseded from time to
time in accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Pre-Enforcement Revenue Priority of Payments" means the rules and
the order of priority in which Funding 2 Available Revenue Receipts will be
applied prior to the enforcement of the Funding 2 Security as set out in Part
[_____] of Schedule [_____] (Funding 2 Priority of Payments) to the Funding 2
Deed of Charge, as the same may be amended, varied or superseded from time to
time in accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Priority of Payments" means, as applicable, any of the Funding 2
Pre-Enforcement Revenue Priority of Payments, the Funding 2 Pre-Enforcement
Principal Priority of Payments or the Funding 2 Post-Enforcement Priority of
Payments;

"Funding Programme Date" means [o];

"Funding 2 Proportion" means, on a Distribution Date, Assignment Date or
Contribution Date, an amount equal to:

                                      B
                                     ---
                                     A+B

      where:

      A  =  the Funding Share on that date; and

      B  =  the Funding 2 Share on that date;

"Funding 2 Reserve Fund" means the reserve fund established in the name of
Funding 2 on the Funding Programme Date in an amount up to the Funding 2
Reserve Maximum Amount, which prior to enforcement may be allocated to help
meet any deficit in Funding Available Revenue Receipts and thereby any deficit
recorded on the Funding 2 Principal Deficiency Ledgers and/or utilised to fund
expenses in connection with the issuance of Notes by Funding 2 Issuers and/or
any deficit in Funding 2 Available Revenue Receipts available for the
repayment of Bullet Loan Tranches;

"Funding 2 Secured Creditors" means the Funding 2 Security Trustee (and any
Receiver of Funding 2 appointed pursuant to the Funding 2 Deed of Charge),
Granite Master Issuer plc, the Corporate Services Provider in relation to
Funding 2, the Account Bank, the Funding 2 GIC Provider, the Mortgages
Trustee, the [NR] Start-up Loan Provider, the Cash Manager and each New
Funding 2 Secured Creditor who accedes to the Funding 2 Deed of Charge from
time to time pursuant to a Deed of Accession (including, for the avoidance of
doubt, any new Funding 2 Issuer);

"Funding 2 Security" means the security granted by Funding 2 under or pursuant
to the Funding 2 Deed of Charge in favour of the Funding 2 Security Trustee
for the benefit of the

                                      61
<PAGE>

Funding 2 Secured Creditors or any of them including the security granted by
Funding 2 under or pursuant to any Deed of Accession;

"Funding 2 Share" means the Current Funding 2 Share;

"Further Contribution" means the consideration in the form of cash payable to
the Mortgages Trustee by any Beneficiary to increase the Funding Share, the
Funding 2 Share or, as the case may be, the Seller Share of the Trust Property
pursuant to and in accordance with the Mortgages Trust Deed but excluding any
Initial Contribution or Deferred Contribution paid by Funding or by Funding 2
to the Mortgages Trustee;

"Issuer" means, as applicable, a Funding Issuer or a Funding 2 Issuer;

"Initial Contribution" the consideration in the form of cash payable by
Funding to the Mortgages Trustee in respect of the Funding Share of the Trust
Property or by Funding 2 to the Mortgages Trustee in respect of the Funding 2
Share of the Trust Property pursuant to and in accordance with the Mortgages
Trust Deed, which Contribution is to fund the payment to the Seller by the
Mortgages Trustee of (and is equal to) the Initial Purchase Price in respect
of the Initial Mortgage Portfolio or (if any is payable) any New Mortgage
Portfolio sold and assigned to the Mortgages Trustee and is to be funded from
the proceeds of an Intercompany Loan;

"Initial Funding 2 Share" means the share of Funding 2 in the Trust Property
on the Funding 2 Programme Date being an amount equal to (GBP)100;

"Initial Purchase Price" means the sum of (GBP)1,480,000,000 payable by the
Mortgages Trustee to the Seller on the Initial Closing Date in consideration
of the Seller's sale and assignment to the Mortgages Trustee of the Initial
Mortgage Portfolio or the sum agreed to from time to time between the
Mortgages Trustee and the Seller and payable by the Mortgages Trustee to the
Seller on an Assignment Date in consideration of the Seller's sale and
assignment to the Mortgages Trustee of a New Mortgage Portfolio in respect of
which any Initial Purchase Price is payable (together with any accrued
principal, interest and expenses as at the Initial Closing Date or Assignment
Date, as applicable) in accordance with the provisions of the Mortgage Sale
Agreement;

"Intercompany Loan Agreements" means the Funding Intercompany Loan Agreements
and the Funding 2 Intercompany Loan Agreements and "Intercompany Loan
Agreement" means, as applicable, a Funding Intercompany Loan Agreement or the
Funding 2 Global Intercompany Loan Agreement;

"Intercompany Loan Enforcement Notice" means:

(a)   an enforcement notice served by the Security Trustee on Funding in
      relation to the enforcement of the Funding Security following the
      occurrence of a Funding Intercompany Loan Event of Default; or

(b)   an enforcement notice served by the Funding 2 Security Trustee on
      Funding 2 in relation to the enforcement of the Funding 2 Security
      following the occurrence of a Funding 2 Intercompany Loan Event of
      Default;

                                      62
<PAGE>

"Intercompany Loans" means the Funding Intercompany Loans and the Funding 2
Global Intercompany Loan and "Intercompany Loan" means, as applicable, a
Funding Intercompany Loan or a Funding 2 Intercompany Loan;

"Issuer Security" means in relation any Issuer, the security created by such
Issuer pursuant to the relevant Issuer Deed of Charge for the benefit of the
relevant Issuer Secured Creditors;

"Loan Tranches" means the AAA loan tranches, the AA loan tranches, the A loan
tranches, the BBB loan tranches and the BB loan tranches, being the advances
made by a Funding 2 Issuer to Funding 2, pursuant to the Funding 2
Intercompany Loan Agreement between such Funding 2 Issuer and Funding 2, each
being funded from proceeds received by such Funding 2 Issuer from the issue of
a Series and Class of Notes;

"Mortgages Trust" means the bare trust of the Trust Property as to both
capital and income, held by the Mortgages Trustee on trust absolutely for
Funding (as to the Funding Share), Funding 2 (as to the Funding 2 Share) and
the Seller (as to the Seller Share) pursuant to the Mortgages Trust Deed so
that each Beneficiary has an undivided beneficial interest therein;

"Pass-Through Loan Tranche" means, in relation to Funding 2, a Loan Tranche
which has no specified repayment dates other than the Final Repayment Date. If
a date specified in relation to a Bullet Loan Tranche, a Scheduled Repayment
Loan Tranche or a Controlled Amortisation Loan Tranches in the applicable Loan
Tranche Supplement occurs or a Trigger Event occurs or the Funding 2 Security
is enforced or a Note Acceleration Notice is served in respect of the related
Series and Class of Notes or a Step-Up Date (if any) in relation to such Loan
Tranche occurs, then that Loan Tranche will be deemed to be Pass-Through Loan
Tranches;

"Pass-Through Requirement" means, on any trust determination date, the lesser
of:

(a)   the aggregate of the Outstanding Principal Balance of each Pass-Through
      Loan Tranche which has become due; and

(b)   the greater of:

      (i)   the product of:

            (A)   the Funding 2 Share Percentage as at the start of the
                  immediately preceding Trust Calculation Period (provided
                  that if an Assignment date or a Contribution date has
                  occurred during such Trust Calculation Period then the
                  Weighted Average Funding 2 Share Percentage will be used);

            (B)   the aggregate amount of Principal Receipts received by the
                  Mortgages Trustee during the immediately preceding trust
                  Calculation Period; and

            (C)   the Outstanding Principal Balance of the Pass-Through Loan
                  Tranches which are due (in the case of Rule (2)) or the
                  Pass-Through Loan Tranches related to the Series and Class
                  of Notes in respect of which a Note Acceleration Notice has
                  been served (in the case of Rule (3)), each as of the most
                  recent Payment Date,

                                      63
<PAGE>

      divided by the aggregate Outstanding Principal Balance of the Global
      Intercompany Loan of the most recent Payment Date; and

      (ii)  the product of:

            (A)   the Funding 2 Share Percentage as at the start of the
                  immediately preceding Trust Calculation Period (provided
                  that if an Assignment Date or a Contribution Date has
                  occurred during such Trust Calculation Period then the
                  Weighted Average Funding 2 Share Percentage will be used);

            (B)   the aggregate amount of Principal Receipts received by the
                  Mortgages Trustee during the immediately preceding Trust
                  Calculation Period;

            less

            (C)   the sum of the Cash Accumulation Requirement, the Scheduled
                  Amortisation Requirement and the Controlled Amortisation
                  Requirement as calculated for this Distribution Date as
                  described above;

"Repayment Requirement" means, on any Trust Determination Date, the amount, if
any, equal to the sum of:

(a)   the Cash Accumulation Requirement;

(b)   the Controlled Amortisation Requirement;

(c)   the Scheduled Repayment Requirement; and

(d)   the Pass-Through Requirement;

"Seller Share" means, prior to the first Distribution Date, the Initial Seller
Share and thereafter, shall mean the Current Seller Share;

"Seller Share Assignment Agreement" means the assignment agreement entered
into on or before the Funding 2 Programme Date between the Seller, Funding 2,
Funding, the Funding Security Trustees, the Mortgages Trustee and the Note
Trustees in respect of the existing Issuers;

"Scheduled Repayment Loan Instalment" means that part of a Scheduled Repayment
Loan Tranche which is payable on each of the Scheduled Repayment Dates of that
Loan Tranche;

"Scheduled Repayment Loan Tranches" means, in relation to Funding 2, any Loan
Tranche which is scheduled to be repaid on two or more instalments on
Scheduled Repayment Dates. Scheduled Repayment Loan Tranches will be deemed to
be Pass-Through Loan Tranches if:

(a)   a date specified in relation to the same in the applicable Loan Tranche
      Supplement occurs;

(b)   a Trigger Event occurs;

                                      64
<PAGE>

(c)   he Issuer Security, in respect of the Funding 2 Issuer which has funded
      such Scheduled Repayment Loan Tranche, is enforced;

(d)   a Note Acceleration Notice is served in respect of the related Series
      and Class of Notes; or

(e)   a Step-Up Date (if any) in relation to such Loan Tranche occurs;

"Scheduled Repayment Requirement" means, on a Trust Determination Date, the
outstanding principal amounts in relation to each Scheduled Repayment Loan
Instalment which is due and payable on any of the three Payment Dates
immediately following such Trust Determination Date;

"Special Distribution" has the meaning given to it in Clause 6.4
(Distribution) of the Mortgages Trust Deed;

                                      65
<PAGE>

                                                                   Exhibit 4.2

                            Dated [o] January 2005
                            ----------------------

                               NORTHERN ROCK PLC
                  as Seller, Cash Manager, and a Beneficiary

                        GRANITE FINANCE FUNDING LIMITED
                         as Funding and a Beneficiary

                       GRANITE FINANCE FUNDING 2 LIMITED
                        as Funding 2 and as Beneficiary

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                                    - and -

                             THE BANK OF NEW YORK
              as Security Trustee and Funding 2 Security Trustee

                    ---------------------------------------
                             MORTGAGES TRUST DEED
                            TENTH 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 [o] January 2005

BETWEEN:

(1)   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 Seller, and in its capacity as Cash Manager and in its
      capacity as a Beneficiary;

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

(3)   GRANITE FINANCE FUNDING 2 LIMITED (registered number 5249387) 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
      in its capacity as a Beneficiary;

(4)   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; and

(5)   THE BANK OF NEW YORK, a New York banking corporation whose London branch
      address is at One Canada Square, 48th Floor, London E14 5AL United
      Kingdom, in its capacity as (1) Security Trustee and (2) Funding 2
      Security Trustee.

WHEREAS:

(A)   On 26 March 2001 (the "Initial Closing Date"), the Mortgages Trustee
      declared the following trusts in respect of the Trust Property (being on
      the Initial Closing Date, the sum of (GBP)100 which monies have been
      received by, are presently beneficially owned by and are held by the
      Mortgages Trustee or to its order).

(B)   On the Initial Closing Date, the Mortgages Trustee (acting as principal
      and not as agent of any party) agreed, in accordance with the Mortgages
      Trust Deed dated 26 March 2001 among the parties hereto (the "Mortgages
      Trust Deed") to hold the Trust Property as bare trustee for Funding and
      the Seller (each a Beneficiary and together, the "Beneficiaries") upon,
      with and subject to the trusts, powers and provisions of the Mortgages
      Trust Deed. The Mortgages Trustee receives amounts arising from the
      Trust Property and distributes such amounts for the benefit of the
      Beneficiaries of the Mortgages Trust. It delegates certain tasks in
      relation to the Mortgages Trust to the Administrator and the Cash
      Manager.

(C)   The Seller carries on the business of, inter alia, originating
      residential first mortgage loans to individual Borrowers in England,
      Wales and Scotland and of managing and administering such mortgage
      loans. The Seller has sold and assigned and intends to sell and assign
      from time to time portfolios of such mortgage loans to the Mortgages
      Trustee pursuant to the

<PAGE>

      Mortgage Sale Agreement entered into on the Initial Closing Date, which
      mortgage loans shall be held by the Mortgages Trustee as bare trustee
      for the Beneficiaries upon, with and subject to the trusts, powers and
      provisions of the Mortgages Trust Deed.

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

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

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

(G)   The parties have agreed to amend and restate the Third Amended Mortgages
      Trust Deed (the "Fourth Amended Mortgages Trust Deed") pursuant to the
      provisions set out in a deed of amendment and restatement dated 23
      September 2002 (the "Fourth Deed of Amendment and Restatement").

(H)   The parties have agreed to amend and restate the Fourth Amended
      Mortgages Trust Deed (the "Fifth Amended Mortgages Trust Deed") pursuant
      to the provisions set out in a deed of amendment and restatement dated
      27 January 2003 (the "Fifth Deed of Amendment and Restatement").

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

(J)   The parties have agreed to amend and restate the Sixth Amended Mortgages
      Trust Deed (the "Seventh Amended Mortgages Trust Deed") pursuant to the
      provisions set out in a deed of amendment and restatement dated 24
      September 2003 (the "Seventh Deed of Amendment and Restatement").

(K)   The parties have agreed to amend and restate the Seventh Amended
      Mortgages Trust Deed (the "Eighth Amended Mortgages Trust Deed")
      pursuant to the provisions set out in a deed of amendment and
      restatement dated 26 January 2004 (the "Eighth Deed of Amendment and
      Restatement").

(L)   The parties have agreed to amend and restate the Eighth Amended
      Mortgages Trust Deed (the "Ninth Amended Mortgages Trust Deed") pursuant
      to the provisions set out in a deed of amendment and restatement dated
      26 May 2004 (the "Ninth Deed of Amendment and Restatement").

                                      2
<PAGE>

(M)   The parties now wish to amend and restate, and Funding 2 and the Funding
      2 Security Trustee wish to become a party to, the Tenth Amended and
      Restated Mortgages Trust Deed.

(N)   With effect from the date hereof, the provisions of the Mortgages Trust
      Deed, the First Amended and Restated Mortgages Trust Deed, the Second
      Amended and Restated Mortgages Trust Deed, the Third Amended and
      Restated Mortgages Trust Deed, the Fourth Amended and Restated Mortgages
      Trust Deed, the Fifth Amended and Restated Mortgages Trust Deed, the
      Sixth Amended and Restated Mortgages Trust Deed, the Seventh Amended and
      Restated Mortgages Trust Deed, the Eighth Amended and Restated Mortgages
      Trust Deed, the Ninth Amended and Restated Mortgages Trust Deed 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 Programme Master Definitions Schedule signed for
      the purposes of identification on [o] January 2005 by Sidley Austin
      Brown & Wood and Allen & Overy LLP (as the same may be amended, varied
      or supplemented from time to time with the consent of the parties
      hereto) is expressly and specifically incorporated into and shall apply
      to this Deed.

1.2   The Mortgages Trust Deed 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 Amendment and
      Restatement, the Sixth Deed of Amendment and Restatement, the Seventh
      Deed of Amendment and Restatement, the Eighth Deed of Amendment and
      Restatement, the Ninth Deed of Amendment and pursuant hereto shall be
      referred to herein as the "Amended and Restated Mortgages Trust Deed".

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

2.    AMENDMENTS TO THE NINTH AMENDED AND RESTATED MORTGAGES TRUST DEED

      Upon execution of this Deed by the parties hereto, the Ninth Amended and
      Restated Mortgages Trust Deed 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 Mortgages Trust Deed under the
      Contract (Rights of Third Parties)

                                      3
<PAGE>

      Act 1999 but this shall not affect any right or remedy of a third party
      which exists apart from that Act.

4.    Security Trustee AND FUNDING 2 SECURITY TRUSTEE

      The Security Trustee, for the purposes of Clause 15.2 (Negative
      Covenants) of the Funding Deed of Charge and the Funding 2 Security
      Trustee for the purposes of Clause 15.2 (Negative Covenants) of the
      Funding 2 Deed of Charge hereby consents to the amendments to the Ninth
      Amended and Restated Mortgages Trust Deed and are party to this Deed
      solely for the purposes of providing such consent.

5.    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.

6.    GOVERNING LAW

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

6.2   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.

                                      4
<PAGE>

                                EXECUTION PAGE

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

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

Signature
           --------------------------
           Witness
Full name
           --------------------------
Occupation
           --------------------------
Address
           --------------------------

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

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

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           Director
its directors/its secretary
                                      Name
                                              --------------------------------
                                      By
                                             ---------------------------------
                                             Director/Secretary

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

Executed by
GRANITE FINANCE FUNDING 2 LIMITED
as its deed as follows:               By
Signed for and on its behalf by one          ---------------------------------
of its directors and by another of           Director
its directors/its secretary
                                      Name
                                              --------------------------------
                                      By
                                             ---------------------------------
                                             Director/Secretary

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

                                      5
<PAGE>

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

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

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

                                      6
<PAGE>

                                  Appendix I
                   Amended and Restated Mortgages Trust Deed

                                      7EXHIBIT 4.3

                                Dated [o] 2005

                               NORTHERN ROCK PLC
                                   as Seller

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

------------------------------------------------------------------------------
                                 TENTH 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>

<TABLE>
<CAPTION>

                                                   CONTENTS

Clause                                                                                              Page No.

<S>    <C>
1.     Definitions and Construction........................................................................1

2.     Sale and Purchase of Initial Mortgage Portfolio.....................................................1

3.     Initial Closing Date................................................................................2

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

5.     Trust of Monies....................................................................................11

6.     Perfection of the Assignment.......................................................................13

7.     Undertakings.......................................................................................16

8.     Warranties and Repurchase by the Seller............................................................20

9.     Further Assurance..................................................................................26

10.    Consequences of Breach.............................................................................26

11.    Subordination......................................................................................26

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

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

14.    Payments...........................................................................................27

15.    Assignment.........................................................................................27

16.    Funding Security Trustees..........................................................................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.................................................................................32

22.    Execution in Counterparts; Severability............................................................32

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

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

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

<PAGE>

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

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................................................................................................55

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...............................................................................................67

Part 1  POWER OF ATTORNEY IN FAVOUR OF THE MORTGAGES TRUSTEE, FUNDING AND THE SECURITY TRUSTEE............67

Part 2  POWER OF  ATTORNEY  IN FAVOUR OF THE  MORTGAGES  TRUSTEE,  EACH  FUNDING  BENEFICIARY  AND EACH
        FUNDING SECURITY TRUSTEE..........................................................................71

SCHEDULE 11 FORM OF SCOTTISH TRUST DEED...................................................................74

SCHEDULE 12 LENDING CRITERIA .............................................................................81

SCHEDULE 13 STANDARD DOCUMENTATION........................................................................84

APPENDIX A THE INITIAL MORTGAGE LOAN PORTFOLIO............................................................85

</TABLE>

<PAGE>

THIS TENTH AMENDED MORTGAGE SALE AGREEMENT DATED [o], 2005 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 located 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 Programme Master Definitions Schedule signed for
     the purposes of identification by Sidley Austin Brown & Wood and Allen &
     Overy LLP on [o] 2005 (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.

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

<PAGE>

     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 Part 1 of
          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;

     (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

                                      2
<PAGE>

     (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 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
<PAGE>

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 as the Mortgages 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, Funding and (from and
          including the Funding 2 Programme Date) Funding 2 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, Funding and (from and including the
          Funding 2 Programme Date) Funding 2 as beneficiaries of the
          Mortgages Trust upon, and with and subject to the trusts, powers and
          provisions of the Mortgages Trust Deed,

     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, Funding and (from and including the Funding 2 Programme Date)
     Funding 2 with a copy (upon request) to the Security Trustee and/or (from
     and including the Funding 2 Programme Date) the Funding 2

                                      4
<PAGE>

     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;

     (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, each Funding Security Trustee and any Issuer that
          the assignment to

                                      5
<PAGE>

          the Mortgages Trustee of the New Mortgage Loans on the Assignment
          Date will adversely affect the then current ratings of the existing
          Notes of such 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 an Issuer of Notes and the drawing
          by a Funding Beneficiary of a loan pursuant to an Intercompany Loan
          Agreement, 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, each Funding Security
          Trustee and such 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)  the [Funding 2 Reserve Fund] is fully funded on the relevant
          Assignment Date up to the relevant required amount or, if the
          [Funding 2 Reserve Fund] is not so fully funded, no payments have
          been made from it;

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

     (k)  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 [0.25] per cent.;

     (l)  to the extent necessary, each Funding Beneficiary and/or 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;

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

     (n)  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;

                                      6
<PAGE>

     (o)  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.;

     (p)  no New Mortgage Loan has a maturity date on or after January 2039
          or, following the redemption in full of all Notes issued by the
          Funding Issuers, January 2044;

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

     (r)  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;

     (s)  the Rating Agencies have provided written confirmation that the then
          current ratings on the Notes of any Issuer 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;

     (t)  following the purchase by the Mortgages Trustee 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), (j), (l), (m), (n), (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.

                                      7
<PAGE>

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
     earlier to occur of:

     (a)  the Step-up Date in respect of the Notes of any Funding 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; or

     (b)  the Step-up Date in respect of the Notes of any Funding 2 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 and the
          aggregate Principal Amount Outstanding of such Notes as at the
          Step-Up Date exceeds (GBP)1,000,000,000; or

     (c)  the date falling 12 months after the Step-Up Date in respect of any
          Series and Class of Notes of any Funding 2 Issuer, if the option to
          redeem any such Notes on such date pursuant to the terms and
          conditions of such 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 and
     (from and including the Funding 2 Programme Date) the Funding 2 Security
     Trustee or their respective representatives 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 any

                                      8
<PAGE>

          Funding Beneficiary to the Mortgages Trustee on such date pursuant
          to the terms of the Mortgages Trust Deed) such Initial Purchase
          Price 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 either from funds received by the Mortgages
          Trustee from Funding on such date in respect of an Initial
          Contribution by Funding for the Funding Share of the New Trust
          Property or from Funding 2 on such date in respect of an Initial
          Contribution by Funding 2 for the Funding 2 Share of the New Trust
          Property, in each case 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 Funding Relevant Distribution and/or
          Funding 2 Relevant Distribution available for payment on such date
          and in an amount equal to the Deferred Contribution paid by the
          Funding Beneficiaries 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 each Funding
     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 (Conditions to
     Effecting an Assignment of New Mortgage Loans) 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

                                      9
<PAGE>

     taking effect) and any unsatisfied conditions precedent shall be 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).

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, each
     Funding Beneficiary and each Funding 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, each
     Funding Beneficiary and each Funding Security Trustee are noted by the
     relevant insurers in relation to each Insurance Contract.

4.10. Mortgage Portfolio: Prior to the earliest to occur of:

     (a)  a Trigger Event; and

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

     (c)  on each occasion that Funding enters into a New Intercompany Loan
          Agreement, 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; or

     (d)  on each occasion that Funding 2 enters into a Funding 2 Intercompany
          Loan Agreement or receives a further advance under any existing
          Funding 2 Intercompany Loan Agreement, the latest Payment Date
          specified by Funding

                                      10
<PAGE>

          2 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 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:

          (i)  where such Notes outstanding are Controlled Amortisation Notes
               or Scheduled Redemption 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; and

          (ii) where such Notes outstanding are Bullet Redemption Notes, the
               amount standing to the credit of the Funding 2 Cash
               Accumulation Ledger will be deducted from the Principal Amount
               Outstanding of such Notes.

4.11. Funding 2 Programme Date: On the Funding 2 Programme Date, the Seller
      shall deliver to each Funding Security Trustee, each Funding Beneficiary
      and the Mortgages Trustee or the representative of such party (or procure
      such delivery to such party) an original power of attorney in the form
      set out in Part 2 of Schedule 10 (Power of Attorney in favour of the
      Mortgages Trustee, Funding, Funding 2, the Security Trustee and the
      Funding 2 Security Trustee) duly executed by the Seller. On the delivery
      of such power of attorney in accordance with the previous sentence, the
      parties hereto agree that the power of attorney delivered by the Seller
      on 26 March 2001 in accordance with Clause 3.1(a) shall terminate and be
      of no further effect.

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

                                      11
<PAGE>

     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, each Funding Beneficiary and each
     Funding 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, each Funding
     Beneficiary and each Funding 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 (in the case of the Initial Mortgage Portfolio) or the relevant
     Assignment Date (in the case of any New Mortgage Portfolio), 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 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

                                      12
<PAGE>

     Mortgages Trustee), then the Seller, the Mortgages Trustee, each Funding
     Beneficiary and each Funding 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:

          (i)  of a Funding Intercompany Loan Enforcement Notice;

          (ii) of a Funding 2 Intercompany Loan Enforcement Notice;

          (iii) of a Note Enforcement Notice (on any Funding Issuer); or

          (iv) of an Issuer Enforcement Notice (on any Funding 2 Issuer),

          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 (on any Funding Issuer) or any Issuer
          Enforcement Notice (on any Funding 2 Issuer) is a default by a Swap
          Provider of any Issuer;

     (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:

          (i)  the Funding Deed of Charge or any material part of such
               security; or

          (ii) the Funding 2 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

                                      13
<PAGE>

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

6.2. Perfection: If:

     (a)  an event set forth in any of paragraphs (b), (c), (e) or (f) of
          Clause 6.1 (Perfection Events) occurs and either the Mortgages
          Trustee or the Funding Beneficiaries (with the consent of the
          Funding Security Trustees) or the Funding Security Trustees so
          request in writing:

     (b)  an event set forth in any of paragraphs (a)(i), (a)(iii) or (d)(i)
          of Clause 6.1 (Perfection Event) occurs and either the Mortgages
          Trustee or Funding (with the consent of the Security Trustee) or the
          Security Trustee so requests in writing: or

     (c)  an event set forth in any of paragraphs (a(ii), (a)(iv) or (d)(ii)
          of Clause 6.1 (Perfection Event) occurs and either the Mortgages
          Trustee or Funding 2 (with the consent of the Funding 2 Security
          Trustee) or the Funding 2 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:

          (i)  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

          (ii) 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 the Funding Beneficiaries (with the
               written consent of the Funding Security Trustees) or the
               Funding Security Trustees).

     [As drafted, the ability by the funding beneficiaries and the funding
     security trustees to request perfection is subject to controlling
     directions, save for where enforcement notices have been served (under
     (a)) or security is deemed to be in jeopardy (under (d)). In these
     scenarios the Funding Beneficiary/security not involved in the process
     has no say in the decision to request perfection.]

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);

                                      14
<PAGE>

     (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
          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 Funding
          Security Trustees may reasonably require.

     The Mortgages Trustee or the Funding Beneficiaries (with the consent of
     the Funding Security Trustees) or the Funding Security Trustees 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, any Funding Beneficiary nor any Funding 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 and/or Funding 2's interests in the
          Mortgage Portfolio;

     (b)  give or require the giving of any notice to any Borrower, insurer or
          any other person of:

                                      15
<PAGE>

          (i)  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

          (ii) the charge by Funding of Funding's beneficial interest in that
               Borrower's Mortgage Loan and its Related Security or such other
               property to the Security Trustee pursuant to the Funding Deed
               of Charge; or

          (iii) the charge by Funding 2 of Funding 2's beneficial interest in
               that Borrower's Mortgage Loan and its Related Security or such
               other property to the Funding 2 Security Trustee pursuant to
               the Funding 2 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, the Security
          Trustee or the Funding 2 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, the Funding Beneficiaries or the Funding Security
     Trustees 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 each Funding Beneficiary
     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).

7.2. Reimbursement of Borrower: The Seller hereby undertakes with the
     Mortgages Trustee and each Funding Beneficiary 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
     each Funding Beneficiary harmless against any such claims and to
     indemnify the Mortgages Trustee and each Funding Beneficiary 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 each Funding Beneficiary in discharge of the
     foregoing

                                      16
<PAGE>

     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,
     each Funding Beneficiary and each Funding 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, each Funding
          Beneficiary and each Funding 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, each Funding Beneficiary and each
          Funding 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/or
          each Funding Beneficiary, the Mortgages Trustee and each Funding
          Beneficiary (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 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, each
     Funding Beneficiary and each Funding Security Trustee that, pending
     perfection under Clause 6 (Perfection of the Assignment), the Seller:

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<PAGE>

     (a)  shall promptly notify the Mortgages Trustee, each Funding
          Beneficiary and (upon request) each Funding 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 any
          Funding Beneficiary's or any Funding 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 and the Funding
          Beneficiaries 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 each Funding Beneficiary 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 any Funding Beneficiary 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)  The Administrator shall not:

          (i)  accept an application from, or issue to any Borrower any offer
               of a Further Advance; or

          (ii) accept an application from, or issue to any Borrower any offer
               of a Product Switch,

     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
          Administrator shall then issue to that Borrower the relevant offer
          referred to in paragraph (a) above on behalf of the Seller and shall
          (in the case of any offer referred to in paragraph (a) above) then
          notify the Seller and Mortgages

                                      18
<PAGE>

          Trustee in writing as soon as the Administrator has accepted the
          mortgage documentation completed by the Borrower in relation to such
          offer.

     (c)  The Mortgages Trustee shall not itself offer or make any Product
          Switch or Further Advance.

7.7. Standard Variable Rate: Subject to the provisions of Clause 7.9
     (Shortfall), the Seller covenants with and undertakes to the Mortgages
     Trustee, each Funding Beneficiary and each Funding 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, any Funding Beneficiary or any Funding Security
     Trustee (which rates shall be the same rates as previously notified to
     the Mortgages Trustee, each Funding Beneficiary and each Funding 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, each Funding Beneficiary and each
     Funding Security Trustee in the form set out in Schedule 10 (Power of
     Attorney in favour of the Mortgages Trustee, each Funding Beneficiary and
     each Funding Security Trustee) allowing the Mortgages Trustee, any
     Funding Beneficiary and/or any Funding 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 any Funding 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, each Funding Beneficiary and each
     Funding 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, each Funding Beneficiary and/or (other than in
     respect to an Existing Borrower's Re-Fix Rate) each Funding Security
     Trustee.

7.9. Shortfall: Unless the Mortgages Trustee, any Funding Beneficiary or any
     Funding Security Trustee needs to do so to avoid a Shortfall, none of the
     Mortgages Trustee, each Funding Beneficiary or each Funding 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: Each Funding 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, each Funding
      Beneficiary, the Seller and the Cash

                                      19
<PAGE>

     Manager in the manner set forth in Clause 20 (Notices) within three (3)
     London Business Days of receipt thereof. Each Funding 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 the
     Mortgages Trustee, each Funding Beneficiary and each Funding 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, each Funding
     Beneficiary and each Funding 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 the Mortgages Trustee,
     each Funding Beneficiary and each Funding 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 any
     Funding Beneficiary and/or any Funding Security Trustee. The Mortgages
     Trustee, each Funding Beneficiary and each Funding Security Trustee
     acknowledges 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 sole remedy of the Mortgages Trustee, each Funding
     Beneficiary and each Funding Security Trustee 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 alleged breach of Clause 8.1
     (Representations and Warranties), the Mortgages Trustee, any Funding
     Beneficiary or any Funding 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;

                                      20
<PAGE>

     (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 each Funding Beneficiary and each Funding 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, the Funding Beneficiaries or the Funding
          Security Trustees have given the Seller not less than 28 days'
          notice in writing;

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

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

     then at the direction of the Funding Beneficiaries (with the consent of
     the Funding Security Trustees) or the Funding Security Trustees, 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 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 Funding Security Trustees shall have no duty
     to provide any such notice to the Seller or consider granting their
     consent pursuant to this Clause 8.4 unless the Funding Security Trustees
     have 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 Funding Security Trustees), could have a
     material

                                      21
<PAGE>

     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 Funding
     Security Trustees shall be entitled to assume that no such material
     breach has occurred.

     [This Clause is subject to controlling directions]

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 any Funding
     Security Trustee may have in such PS/FA/PSL Mortgage Loan and its Related
     Security under the Funding Deed of Charge and/or the Funding 2 Deed of
     Charge (as applicable). 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 any Funding Security Trustee may have had in such Mortgage
     Loan and its Related Security under the Funding Deed of Charge and/or the
     Funding 2 Deed of Charge (as applicable) 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 exercise an option 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

                                      22
<PAGE>

          be in 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 the Funding Beneficiaries than those) notified
          from time to time to the Seller by the Mortgages Trustee, the
          Funding Beneficiaries or the Administrator as being required by the
          Mortgages Trustee or any Funding Beneficiary.

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.

                                      23
<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 each Funding
     Beneficiary 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 any Funding Security Trustee and if the
     Mortgages Trustee or any Funding Security Trustee then holds the Title
     Deeds, the Mortgages Trustee or, as the case may be, such Funding
     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 any Funding
     Beneficiary and/or any Funding 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 this Clause 8
      (Warranties and Repurchase by the Seller) to repurchase any Mortgage
      Loan it shall notify the Mortgages Trustee, each Funding Beneficiary and
      each Funding Security Trustee in writing thereof as soon as reasonably
      practicable.

                                      24
<PAGE>

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 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,
      nor any Funding Beneficiary or any Funding 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 but
      without prejudice to Clause 8.14 (Repurchase Not Possible) and Clause
      8.15 (Indemnity) of this Agreement and Clause 8.5 (Adjustments to Trust
      Property) of the Mortgages Trust Deed. 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, any Funding Beneficiary or
      any Funding Security Trustee in relation to any Representation or
      Warranty set out in Schedule 1 (Representations and Warranties), the
      Mortgages Trustee, each Funding Beneficiary and each Funding 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, each Funding Beneficiary and each Funding 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.

                                      25
<PAGE>

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 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, each Funding Beneficiary and each Funding Security
     Trustee severally acknowledges to and agrees with the Seller, and each
     Funding Security Trustee severally acknowledges to and agrees with each
     Funding Beneficiary and the Mortgages Trustee (and with each other
     Funding Security 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:

     (a)  the Mortgages Trustee; and/or

     (b)  Funding or the assets comprised in the Funding Security constituted
          by the Funding Deed of Charge; and/or

     (c)  Funding 2 or the assets comprised in the Funding 2 Security
          constituted by the Funding 2 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 any Funding Beneficiary 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
     or enforcement of the security constituted by the Funding 2 Deed of
     Charge shall be treated as indirect or consequential loss or damage.

11.  Subordination

     The Seller agrees with the Mortgages Trustee, each Funding Beneficiary
     and each Funding 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.

                                      26
<PAGE>

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 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 (Funding
      Security Trustees), 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:

     (a)  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; and

     (b)  Funding 2 shall be entitled to assign by way of security all or any
          of its rights under this Agreement without such consent to the
          Funding 2 Security Trustee pursuant to the Funding 2 Deed of Charge
          and the Funding 2 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 Funding 2 Security Trustee
          under the Funding 2 Deed of Charge and may assign all of any part of
          the Funding 2 Security upon an enforcement of the Funding 2 Security
          in accordance with the Funding 2 Deed of Charge.

                                      27
<PAGE>

15.2. Acknowledgement of Security Assignment: The Seller acknowledges that:

     (a)  on the assignment by Funding of its rights under this Agreement to
          the Security Trustee pursuant to the Funding Deed of Charge, 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; and

     (b)  on the assignment by Funding 2 of its rights under this Agreement to
          the Funding 2 Security Trustee pursuant to the Funding 2 Deed of
          Charge, the Funding 2 Security Trustee may enforce such rights in
          the Funding 2 Security Trustee's own name without joining Funding 2
          in any such action (which right the Seller hereby waives) and the
          Seller hereby waives as against the Funding 2 Security Trustee any
          rights or equities in its favour arising from any course of dealing
          between the Seller and Funding 2.

16.  Funding Security Trustees

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, each Funding Beneficiary and the Funding 2
      Security Trustee shall execute such documents and take such action as the
      successor security trustee and the outgoing security trustee may require
      for the purpose of vesting in the successor security trustee the rights
      and obligations of the outgoing security trustee 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. If there is any change in the identity of the security trustee
      in accordance with the Funding 2 Deed of Charge, the Seller, the
      Mortgages Trustee, each Funding Beneficiary and the Security Trustee
      shall execute such documents and take such action as the successor
      security trustee and the outgoing security trustee may require for the
      purpose of vesting in the successor security trustee the rights and
      obligations of the outgoing security trustee hereunder and releasing the
      outgoing security trustee from its future obligations under this Deed.

16.2. No Assumption: It is hereby acknowledged and agreed that by its
      execution of this Agreement no Funding Security Trustee shall assume or
      have any of the obligations or liabilities of the Seller, any Funding
      Beneficiary or the Mortgages Trustee or any other Funding Security
      Trustee hereunder. Furthermore, any liberty or power which may be
      exercised or any determination which may be made hereunder by a Funding
      Security Trustee may be exercised or made in its absolute discretion
      without any obligation to give reasons therefor, but in any event must be
      exercised or made in accordance with the provisions of the Funding Deed
      of Charge or the Funding 2 Deed of Charge (as applicable) and the Funding
      Beneficiary Deed. Without prejudice to the generality of the foregoing,
      all references to any Funding 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.

                                      28
<PAGE>

17.  New Intercompany Loans

     On each occasion that a Funding Beneficiary enters into an Intercompany
     Loan Agreement or is the recipient of a loan advance under an
     Intercompany Loan Agreement, then the Seller, the Mortgages Trustee, each
     Funding Beneficiary and each Funding Security Trustee shall execute such
     documents and take such action as may be required by the Rating Agencies
     for the purpose of including the applicable Issuer in the Transaction and
     or providing for the rights and obligations of such Issuer, 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 such 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 any Funding Beneficiary 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 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

                                      29
<PAGE>

               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.

     (c)  in relation to Funding 2:

          (i)  only the Funding 2 Security Trustee may enforce the security
               created in favour of the Funding 2 Security Trustee under the
               Funding 2 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 2 under this Agreement shall
               be payable by Funding 2 except to the extent that Funding 2 has
               sufficient funds available or (following enforcement of the
               Funding 2 Security) the Funding 2 Security Trustee has realised
               sufficient funds from the Funding 2 Security to pay such sum
               subject to and in accordance with the relevant Funding 2
               Priority of Payments and provided that all liabilities of
               Funding 2 required to be paid in priority thereto or pari passu
               therewith pursuant to such Funding 2 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 2 or enforcing any rights arising out
               of this Agreement against Funding 2 otherwise than in
               accordance with the Funding 2 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.

                                      30
<PAGE>

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.

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),

     (e)  in the case of Funding 2, to Granite Finance Funding 2 Limited,
          Fifth Floor, 100 Wood Street, London, EC2V 7EX (facsimile number 020
          7606 0643), for the attention of the Company Secretary (with a copy
          to the Seller in accordance with (a) above);

     (f)  in the case of the Funding 2 Security Trustee, to The Bank of New
          York, 48th Floor, One Canada Square, London E14 5AL (facsimile
          number 020 7964 6399), for the attention of Global Structured
          Finance (Corporate Trust);

                                      31
<PAGE>

          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.

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.

                                      33
<PAGE>

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:

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, regulations
     and rules 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 Regulated 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 would entitle such
     Borrower to reduce the amount of any payment

                                      35
<PAGE>

     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 Regulated 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 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

                                      36
<PAGE>

     (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 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

                                      37
<PAGE>

     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 any term of 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 or, following
     the redemption in full of all Notes issued by Funding Issuers, January
     2044..

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
     Regulated 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

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

                                      40
<PAGE>

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

(d)  to refinance any existing indebtedness of the relevant Borrower, whether
     to the Seller or another person, under any agreement by which the
     relevant Borrower 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 any Funding Beneficiary such that it would "control"
     the Mortgages Trustee or any Funding Beneficiary 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 any Funding
     Beneficiary, respectively, and any Borrower.

                                      42
<PAGE>

                                    Part 3

The Seller makes the following representations and warranties to the Mortgages
Trustee, each Funding Beneficiary and each Funding 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 Transaction Documents;

     (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 by Northern Rock, in its capacity
     as Seller, 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, amongst
     others, 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.

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.

                                      46
<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]

                                      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

------------- ------------- ---------------- -------------- ------------------
1             2             3                4              5
------------- ------------- ---------------- -------------- ------------------
Account No.   Address       Borrowers Full   Title Number   Registration Date
                            Names
------------- ------------- ---------------- -------------- ------------------

                                      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 ...................................    ...................................

                                      50
<PAGE>

             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   County         Recording
                            Names                           Date
------------- ------------- ---------------- -------------- ------------------

                                      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, amongst others, Northern Rock as Seller and the Mortgages
     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.

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

                                      52
<PAGE>

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     23.04.2003
                       Limited

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

(f)BL-BBR              AXA General Insurance          Cover Me Buildings and    18.12.2000
                       Limited                        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, amongst others, Northern Rock and the Mortgages
     Trustee, 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.

                                      55
<PAGE>

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.

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, amongst others, Northern Rock and the Mortgages
     Trustee, 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 Mortgages 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.

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 Mortgages
     Trustee shall approve upon each of the Guarantors pursuant to each
     Scottish Guarantee.

                                      57
<PAGE>

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, amongst others, (1) NORTHERN ROCK PLC (the "Seller") and
     (2) GRANITE FINANCE TRUSTEES LIMITED (the "Mortgages 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:                                     )

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

                                      60
<PAGE>

[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.

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, amongst others, (1) NORTHERN ROCK PLC (the
     "Seller") and (2) GRANITE FINANCE TRUSTEES LIMITED (the "Mortgages
     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
                       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 the consent of the Mortgages Trustee and
the Funding Security Trustees]

Yours faithfully,

Northern Rock plc

                                      65
<PAGE>

                                  SCHEDULE 9
       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, amongst others, (1)
Northern Rock plc and (2) Granite Finance Trustees Limited (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 for and on behalf of                )
GRANITE FINANCE TRUSTEES                   )
LIMITED                                    )
as Seller                                  )
[acting as its attorney NORTHERN ROCK PLC:])

                                      66
<PAGE>

                                  SCHEDULE 10

                                    Part 1

                        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.

NOW THIS DEED WITNESSETH:

1.   The provisions of the Programme Master Definitions Schedule signed for
     the purposes of identification by Sidley Austin Brown & Wood and Allen &
     Overy LLP on [o] (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.

2.   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 the protection or
     preservation of

                                      67
<PAGE>

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

                                      68
<PAGE>

     (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.

3.   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.

4.   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.

5.   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.

                                      69
<PAGE>

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

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

Name:

Title:

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

Name:

Title:

                                      70
<PAGE>

                                  SCHEDULE 10

                                    Part 2

                        POWER OF ATTORNEY IN FAVOUR OF
           THE MORTGAGES TRUSTEE, EACH FUNDING BENEFICIARY AND EACH
                           FUNDING 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

(4)  GRANITE FINANCE FUNDING 2 LIMITED whose registered office is at Fifth
     Floor, 100 Wood Street, London EC2V 7EX; and

(5)  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
     capacities as Security Trustee and as Funding 2 Security Trustee.

WHEREAS:

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

(B)  NOW THIS DEED WITNESSETH:

1.   The provisions of the Programme Master Definitions Schedule signed for
     the purposes of identification by Sidley Austin Brown & Wood and Allen &
     Overy LLP on [o] (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.

2.   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, Funding 2, the Mortgages Trustee, the
     Security Trustee and the Funding 2 Security Trustee (each an "Attorney")
     and any receiver and/or administrator appointed from time to time in
     respect of Funding, Funding 2 and/or the Mortgages

                                      71
<PAGE>

     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 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 Funding Security Trustees) 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, Funding or Funding 2 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

                                      72
<PAGE>

          deeds as may 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.

3.   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.

4.   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.

5.   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:

                                      73
<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");

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

GRANITE FINANCE FUNDING 2 LIMITED, incorporated under the laws of England and
Wales (registered number 5249387) and having its registered office at Fifth
Floor, 100 Wood Street, London EC2V 7EX ("Funding 2" and, together with
Funding, each in its capacity as a beneficiary of the Mortgages Trust, the
"Funding Beneficiaries" 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;

                                      74
<PAGE>

NOW THEREFORE the parties HEREBY AGREE and DECLARE as follows:

1    Interpretation

In this deed:-

1.1  The provisions of the Programme Master Definitions Schedule signed for
     the purposes of identification by Sidley Austin Brown & Wood and Allen &
     Overy LLP on [o], 2005 (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, including the recitals hereto; 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.

4    Dealings with Trust Property and Negative Pledge

                                      75
<PAGE>

     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) the Funding Beneficiaries and the Funding
     Security Trustees, 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.

                                      76
<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, each Funding Beneficiary and each Funding
          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 and the Beneficiaries 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
     (Mortgages Trustee Declaration of Trust) 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.

10   Variation

                                      77
<PAGE>

     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) each Funding Beneficiary and each Funding
     Security Trustee.

11   Governing Law

     11.1 This Deed shall be governed by, and construed in accordance with,
          Scots law, other than Clause 7 (Mortgages Trustee Declaration of
          Trust) 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, Funding and Funding 2 as follows:

As Seller and as Seller Beneficiary:

SUBSCRIBED by
NORTHERN ROCK PLC
acting by:

<TABLE>
<CAPTION>

<S>                                      <C>                              <C>
.......................... Director       .........................        Director
          (Print Full Name)                     (Signature)

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

all together at
on

                                      78
<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 a 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

As Funding 2 and as a Funding Beneficiary:

SUBSCRIBED by
GRANITE FINANCE FUNDING 2 LIMITED
acting by:

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

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

</TABLE>

                                      79
<PAGE>

This is the Schedule to the foregoing Scottish Trust Deed between Northern
Rock PLC, Granite Finance Trustees Limited, Granite Finance Funding Limited
and Granite Finance Funding 2 Limited

                 Scottish Mortgage Loans and Related Security

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

                                      80
<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 applying for Mortgage Loans
in an amount less than (GBP)500,000 may be established by:

(a)  the last three monthly bank statements and/or three monthly payslips from
     the six month period prior to the application; or

(b)  Form P60 or accountant's certificate certifying the Borrower's income.

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.

(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

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

                                      81
<PAGE>

     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)1,000,000, 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. The first named Borrower in respect of Together Mortgage Loans must be
aged 21 or over. There are no maximum age limits.

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

                                      82
<PAGE>

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 a Mortgage Loan secured by a Mortgaged Property valued up to (GBP)250,000,
the maximum LTV ratio permitted is 95 per cent. of the lower of the purchase
price and the current market value of the Mortgaged Property determined by the
valuation. For a Mortgage Loan secured by a Mortgaged Property valued up to
(GBP)1,000,000 the maximum LTV ratio permitted is 90 per cent. of the lower of
the purchase price and the current market value of the Mortgaged Property
determined by relevant valuation. For a Mortgage Loan secured by a Mortgaged
Property valued over (GBP)1,000,000 the maximum LTV ratio permitted is 85 per
cent. of the lower of the purchase price and the current market value of the
Mortgaged Property determined by valuation.

                                      83
<PAGE>

<TABLE>
<CAPTION>

                                  SCHEDULE 13
                            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>

                                      84
<PAGE>

                                  APPENDIX A
                      THE INITIAL MORTGAGE LOAN PORTFOLIO

Account No      Property      Name of          Date of           Current
                Address       Borrower(s)      Mortgage          Balance
                                               Completion

                                      85
<PAGE>

  Definitions (to be incorporated into a revised Master Definitions Schedule)

"Bullet Redemption Notes" means, in relation to a Funding 2 Issuer, any Series
and Class of Notes issued by such Issuer which is scheduled to be repaid in
full on one Payment Date. Such Bullet Redemption Notes will be deemed to be
Pass-Through Notes if:

(a)  a date specified in relation to the same in the applicable Note
     Supplement occurs;

(b)  a Trigger Event occurs;

(c)  a Note Acceleration Notice is served in respect of such Notes; or

(d)  the Step-Up Date (if any) in relation to such Notes occurs;

"Controlled Amortisation Notes" means, in relation to a Funding 2 Issuer, any
Series and Class of Notes issued by such Issuer, the conditions of which
impose a limit on the amount of principal which may be repaid on such Notes on
each Payment Date. Such Controlled Amortisation Notes will be deemed to be
pass-through notes if:

(a)  a date specified in relation to the same in the applicable Note
     Supplement occurs;

(b)  a Trigger Event occurs;

(c)  a Note Acceleration Notice is served in respect of such Notes; or

(d)  the Step-Up Date (if any) in relation to such Notes occurs;

"Controlled Redemption Dates" means, for any Series and Class of Controlled
Amortisation Notes, the Payment Date specified as such for such Series and
Class of Notes in the applicable Note Supplement;

"Deferred Contribution" means:

(a)  the consideration in the form of cash payable by Funding to the Mortgages
     Trustee from time to time in respect of the Funding Share of the Trust
     Property pursuant to and in accordance with the Mortgages Trust Deed
     and/or the Funding Deed of Charge including, for the avoidance of doubt,
     the Funding Final Deferred Contribution; and

(b)  the consideration in the form of cash payable by Funding 2 to the
     Mortgages Trustee from time to time in respect of the Funding 2 Share of
     the Trust Property pursuant to and in accordance with the Mortgages Trust
     Deed and/or the Funding 2 Deed of Charge including, for the avoidance of
     doubt, the Funding 2 Final Deferred Contribution,

which Contributions will fund the payment to the Seller by the Mortgages
Trustee of amounts of Deferred Purchase Price payable by the Mortgages Trustee
to the Seller from time to time pursuant to and in accordance with the
Mortgage Sale Agreement;

"Event of Default" means, as the context requires, a Funding Event of Default
and/or a Funding 2 Event of Default;

                                      86
<PAGE>

"Funding Beneficiaries" means Funding and Funding 2, as beneficiaries of the
Mortgages Trust and "Funding Beneficiary" means either of them;

"Funding Event of Default" means, as the context requires, any of the
following:

(a)  in relation to the Notes issued by any Funding Issuer, the occurrence of
     a Note Event of Default pursuant to the Terms and Conditions of such
     Notes;

(b)  in relation to any Funding Intercompany Loan Agreement, the occurrence of
     a Funding Intercompany Loan Event of Default;

"Funding Final Deferred Contribution" has the meaning given such term in
Clause [4.2(d)] of the Mortgages Trust Deed

"Funding Intercompany Loan" means a loan (or the aggregate of a number of
separate loans) of the net proceeds of any issue (or all issues) of Notes by a
Funding Issuer, such loan(s) being advanced to Funding by such Funding Issuer
pursuant to the terms of a Funding Intercompany Loan Agreement;

"Funding Intercompany Loan Agreement" means an intercompany loan agreement
entered into between Funding and a Funding Issuer in relation to a Funding
Intercompany Loan;

"Funding Intercompany Loan Event of Default" means the occurrence of an event
of default as specified in Clause 14 (Default) of the Intercompany Loan Terms
and Conditions;

"Funding Issuer" means a wholly-owned subsidiary of Funding, which is
established to issue Notes and to make a Funding Intercompany Loan to Funding;

"Funding Relevant Distribution" has the meaning given such term in Clause
[4.2(b)] of the Mortgages Trust Deed;

"Funding Security Trustees" means the Security Trustee and the Funding 2
Security Trustee and "Funding Security Trustee" means either of them;

"Funding 2 Available Revenue Receipts" in respect of any Payment Date will be
calculated by the Cash Manager on the Distribution Date immediately preceding
such Payment Date and will be an amount equal to the sum of:

(a)  all Mortgages Trustee Available Revenue Receipts distributed to Funding 2
     during the Interest Period ending on the relevant Payment Date;

(b)  other net income of Funding 2 including all amounts of interest received
     on the Funding 2 GIC Account and the Funding 2 Transaction Account,
     and/or all income from Funding 2's Authorized Investments, on each
     Distribution Date during the Interest Period ending on such Payment Date,
     in each case to be received on or prior to such Payment Date; and

(c)  amounts received from the Funding 2 Basis Rate Swap Provider under the
     Funding 2 Basis Rate Swap Agreement (excluding Swap Collateral standing
     to the credit of the Funding 2 Swap Collateral Accounts) including any
     early termination amounts (other than such early termination amounts
     applied or to be applied by Funding 2 in the

                                      87
<PAGE>

     purchase of one or more replacement hedge transactions) recovered by
     Funding 2 under the Funding 2 Basis Rate Swap Agreement;

(d)  (only to the extent required after making the calculation set out in
     paragraph [__] to Schedule [__] of the Funding 2 Deed of Charge the
     aggregate of amounts standing to the credit of the Funding 2 Principal
     Ledger or the Funding 2 Cash Accumulation Ledger (as applicable) which
     are to be applied on the relevant payment date to pay items (H), (J),
     (M), (O), and (Q) of the Funding 2 Pre-Enforcement Revenue Priority of
     Payments;

(e)  the amount standing to the credit of the Funding 2 Reserve Ledger,
     subject to any limits or conditions on the purposes for which the Funding
     2 Reserve Fund may be utilized; and

(f)  the amount standing to the credit of the Funding 2 Liquidity Reserve
     Fund, if any, subject to any limits or conditions on the purposes for
     which the Funding 2 Liquidity Reserve Fund may be utilized.

(g)  in so far as is needed, any amount available to be drawn under the
     Funding 2 Liquidity Facility, if any, for the payment of interest and
     expenses.

"Funding 2 Deed of Charge" means the deed of charge entered into on or about
the Funding 2 Programme Date between Funding 2, the Funding 2 Security
Trustee, the Issuer Security Trustee, Granite Master Issuer plc, the Funding 2
Basis Rate Swap Provider, the Corporate Services Provider, the Account Bank,
the Funding 2 GIC Provider, the Mortgages Trustee and the Cash Manager
[others] and the Schedules thereto and including each Deed of Accession or
Accession Undertaking entered into in connection therewith;

"Funding 2 Event of Default" means, as the context requires, any of the
following:

(a)  in relation to the Notes issued by any Funding 2 Issuer, the occurrence a
     Note Event of Default pursuant to the Terms and Conditions of such Notes;

(b)  in relation to any Funding 2 Intercompany Loan Agreement, the occurrence
     of a Funding 2 Intercompany Loan Event of Default;

"Funding 2 Final Deferred Contribution" has the meaning given such term in
Clause [4.3(d)] of the Mortgages Trust Deed;

"Funding 2 Intercompany Loan" means a loan (or the aggregate of a number of
separate loans) of the net proceeds of any issue (or all issues) of Notes by a
Funding 2 Issuer, such loan(s) being advanced to Funding 2 by such Funding 2
Issuer pursuant to the terms of a Funding 2 Intercompany Loan Agreement;

"Funding 2 Intercompany Loan Agreement" means an intercompany loan agreement
entered into between Funding 2 and a Funding 2 Issuer in relation to a Funding
2 Intercompany Loan;

"Funding 2 Intercompany Loan Event of Default" means, in relation to the
Global Intercompany Loan Agreement, the occurrence of an event of default
specified as such in Clause 15 (Default) of the Global Intercompany Loan
Agreement, and in relation to any other

                                      88
<PAGE>

Funding 2 Intercompany Loan Agreement, the occurrence of an event of default
specified as such in such Funding 2 Intercompany Loan Agreement;

"Funding 2 Issuer" means a wholly-owned subsidiary of Funding 2, which is
established to issue Notes and to make a Funding 2 Intercompany Loan to
Funding 2;

"Funding 2 Liquidity Facility" means a liquidity facility entered into by
Funding 2 at any time after the Funding 2 Programme Date;

"Funding 2 Liquidity Reserve Fund" means the liquidity reserve fund which
Funding 2 will be required to establish if the long term, unsecured,
unsubordinated and unguaranteed debt obligations of the Seller cease to be
rated at least A3 by Moody's or A- by Fitch (unless Moody's or Fitch, as
applicable, confirms that the then-current ratings of the Notes of any Funding
2 Issuer will not be adversely affected) and will be funded to the relevant
Funding 2 Liquidity Reserve Required Amount;

"Funding 2 Liquidity Reserve Required Amount" means [o];

"Funding 2 Programme Date" means [o], 2005

"Funding 2 Relevant Distribution" has the meaning given such term in Clause
[4.3(b)] of the Mortgages Trust Deed;

"Funding 2 Reserve Fund" means the reserve fund established in the name of
Funding 2 on the Funding 2 Programme Date in an amount up to the Funding 2
Reserve Maximum Amount, which prior to enforcement may be allocated to help
meet any deficit in Funding Available Revenue Receipts and thereby any deficit
recorded on the Funding 2 Principal Deficiency Ledgers and/or utilised to fund
expenses in connection with the issuance of Notes by Funding 2 Issuers and/or
any deficit in Funding Available Revenue Receipts available for the repayment
of Bullet Loan tranches;

"Funding 2 Reserve Maximum Amount" means, as at any date, the amount (if any)
by which the Target Reserve Required Amount (as at such date) exceeds the
Issuer Reserve Minimum Amount (as at such date);

"Funding 2 Security" means the security granted by Funding 2 under or pursuant
to the Funding 2 Deed of Charge in favour of the Funding 2 Security Trustee
for the benefit of the Funding 2 Secured Creditors or any of them including
the security granted by Funding 2 under or pursuant to any Deed of Accession;

"Funding 2 Security Trustee" means The Bank of New York, whose principal
office is at 48th Floor, One Canada Square, London E14 5AL, or such other
persons and all other persons for the time being acting as the security
trustee or security trustees pursuant to the Funding 2 Deed of Charge;

"Intercompany Loan Agreements" means the Funding Intercompany Loan Agreements
and the Funding 2 Intercompany Loan Agreements and "Intercompany Loan
Agreement" means, as applicable, a Funding Intercompany Loan Agreement or a
Funding 2 Intercompany Loan Agreement;

"Intercompany Loan Enforcement Notice" means:

                                      89
<PAGE>

(a)  an enforcement notice served by the Security Trustee on Funding in
     relation to the enforcement of the Funding Security following the
     occurrence of a Funding Intercompany Loan Event of Default; or

(b)  an enforcement notice served by the Funding 2 Security Trustee on Funding
     2 in relation to the enforcement of the Funding 2 Security following the
     occurrence of a Funding 2 Intercompany Loan Event of Default;

"Issuer" means either a Funding Issuer or a Funding 2 Issuer;

"Issuer Reserve Minimum Amount" means, on any date and subject to amendment as
described in Clause [ ] of the Issuer Cash Management Agreement, the amount
calculated as the product of (a) one per cent. and (b) the aggregate Principal
Amount Outstanding of the Notes (including the Principal Amount Outstanding of
Notes issued on such date;

"Issuer Security" means in relation any Issuer, the security created by such
Issuer pursuant to the applicable Issuer Deed of Charge for the benefit of the
applicable Issuer Secured Creditors;

"Issuer Enforcement Notice" means, in relation to a Funding 2 Issuer, a notice
issued by the applicable Note Trustee to such Funding 2 Issuer, the applicable
Issuer Security Trustee and the Funding 2 Security Trustee declaring all Notes
issued by such Funding 2 Issuer to be due and payable pursuant to the terms
and conditions of such Notes;

"Pass-Through Notes" means, in respect of the Funding 2 Issuers, a Series and
Class of Notes which has no specified redemption dates other than the Final
Maturity Date. If a Trigger Event occurs or the Issuer Security is enforced,
then the Bullet Redemption Notes, the Scheduled Redemption Notes and the
Controlled Amortisation Notes will be deemed to be Pass-Through Notes;

"Scheduled Redemption Notes" means, in relation to a Funding 2 Issuer, any
Series and Class of Notes issued by such Issuer scheduled to be repaid in full
in [two or more] instalments on Scheduled Redemption Dates. Such Scheduled
Redemption Notes will be deemed to be Pass-Through Notes if:

(a)  a date specified in relation to the same in the applicable Note
     Supplement occurs;

(b)  a Trigger Event occurs; or

(c)  a Note Acceleration Notice is served in respect of such Notes; or

(d)  the Step-Up Date (if any) in relation to such Notes occurs;

"Step-Up Date" means the Payment Date in respect of an Issuer on which the
interest rate on Notes issued by such Issuer increases by a pre-determined
amount following the payment made by such Issuer on such Payment Date, which
date in respect of the First Issuer is the Payment Date occurring in January
2008, and, in relation to any New Issuer, has the meaning specified under the
relevant Issuer Master Definitions Schedule;

"Target Reserve Required Amount" means, as at any date, an amount equal to the
product of (a) the Target Reserve Required Percentage and (b) the Principal
Amount Outstanding of the Global Intercompany Loan (including the Principal
Amount Outstanding of any Loan

                                      90
<PAGE>

Tranche (or the increase in the Principal Amount Outstanding of any existing
Loan Tranche that is made on such date);

"Target Reserve Required Percentage" means, on any date and subject to
amendment as described in Clause [ ] of the Cash Management Agreement, the
percentage specified as such in the most recent prospectus supplement;

                                      91
<PAGE>

                                                                   Exhibit 4.3

                            Dated [o] January 2005
                            ----------------------

                               NORTHERN ROCK PLC
                                   as Seller

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                        GRANITE FINANCE FUNDING LIMITED

                       GRANITE FINANCE FUNDING 2 LIMITED

                                    - and -

              THE BANK OF NEW YORK AND FUNDING 2 SECURITY TRUSTEE
              as Security Trustee and Funding 2 Security Trustee

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

                            MORTGAGE SALE AGREEMENT
                            TENTH 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 [o] January 2005

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;

(4)  GRANITE FINANCE FUNDING 2 LIMITED (registered number 5249387) 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 in
     its capacity as a Beneficiary; and

(5)  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 (1) Security Trustee and (2) Funding 2 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

<PAGE>

     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 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 have agreed to amend and reinstate the Eighth Amended and
     Restated Mortgage Sale Agreement (the "Ninth Amended and Restated
     Mortgage Sale Agreement") pursuant to the provisions set out in a deed of
     amendment and restatement dated 22 September 2004.

(L)  The parties now wish to amend and restate, and Funding 2 and the Funding
     2 Security Trustee wish to become party to, the Ninth Amended and
     Restated Mortgage Sale Agreement.

(M)  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, the Ninth Amended and Restated
     Mortgage Sale Agreement and this Deed shall be read and construed as one
     document.

NOW IT IS HEREBY AGREED as follows:

                                      2
<PAGE>

1.   INTERPRETATION

1.1  The provisions of the Programme Master Definitions Schedule signed for
     the purposes of identification on [o] January 2005 by Sidley Austin Brown
     & Wood and Allen & Overy LLP (as the same 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 Amendment and
     Restatement, the Sixth Deed of Amendment and Restatement, the Seventh
     Deed of Amendment and Restatement, the Eighth Deed of Amendment and
     Restatement, the Ninth 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 NINTH AMENDED AND RESTATED MORTGAGE SALE AGREEMENT

     Upon execution of this Deed by the parties hereto, the Ninth 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.

                                      3
<PAGE>

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

<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                     Director
                                                              Name
                                                                  ----------------------------------------------
                                                                By
                                                                  ----------------------------------------------
                                                                  Director/Secretary
                                                              Name
                                                                  ----------------------------------------------

Executed by
GRANITE FINANCE FUNDING 2 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                     Director
                                                              Name
                                                                  ----------------------------------------------
                                                                By
                                                                  ----------------------------------------------
                                                                  Director/Secretary
                                                              Name
                                                                    ----------------------------------------------

                                      4
<PAGE>

Executed by
GRANITE FINANCE TRUSTEES 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                     Director
                                                              Name
                                                                  ----------------------------------------------
                                                                By
                                                                  ----------------------------------------------
                                                                  Director/Secretary
                                                              Name
                                                                  ----------------------------------------------

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 attorneys/signatories                                  Duly Authorised Attorney/Signatory
                                                              Name
                                                                  ----------------------------------------------

</TABLE>

                                   5
<PAGE>

                                  Appendix 1
                 Amended and Restated Mortgage Sale Agreement

                                      6

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