Document:

EXHIBIT 4.3

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

                               NORTHERN ROCK PLC
                               as Administrator

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                               NORTHERN ROCK PLC
                           as Seller and Beneficiary

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

                    _______________________________________

                           ADMINISTRATION AGREEMENT
                    FIFTH DEED OF AMENDMENT AND RESTATEMENT
                    _______________________________________

                           SIDLEY AUSTIN BROWN & WOOD
                                WOOLGATE EXCHANGE
                              25 BASINGHALL STREET
                                 LONDON EC2V 5HA
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                             ref:30507-30030/662426
<PAGE>

THIS DEED is made on 25 June 2004

BETWEEN:

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

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

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

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

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

WHEREAS:

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

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

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

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

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

<PAGE>

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

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

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

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

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

NOW IT IS HEREBY AGREED as follows:

1.   INTERPRETATION

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

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

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

                                      2
<PAGE>

2.   AMENDMENTS TO THE FOURTH AMENDED ADMINISTRATION AGREEMENT

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

3.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

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

4.   COUNTERPARTS

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

5.   GOVERNING LAW

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

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

                                      3
<PAGE>

                                 EXECUTION PAGE

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

as Administrator, Seller and Beneficiary

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

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

as Mortgages Trustee

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

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

                                      4

<PAGE>

as Beneficiary

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

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

as Security Trustee

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

Authorised Signatory

Name:

Title:

                                      5
<PAGE>

                                  Appendix I

                 Amended and Restated Administration Agreement

                                      6

<PAGE>

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

                               NORTHERN ROCK PLC
                               as Administrator

                                    - and -

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                                    - and -

                               NORTHERN ROCK PLC
                                   as Seller

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

                    _______________________________________

                          FIFTH AMENDED AND RESTATED
                           ADMINISTRATION AGREEMENT
                    _______________________________________

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

<PAGE>

                                   CONTENTS

Clause                                                                  Page No.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

WHEREAS:

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

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

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

<PAGE>

IT IS HEREBY AGREED as follows:

1.   Definitions and Interpretation

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

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

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

2.   Appointment of Administrator

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

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

                                      2
<PAGE>

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

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

3.   The Administration Services

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

3.2  Sub-contracts:

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

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

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

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

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

                                      3
<PAGE>

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

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

          (i)  to the engagement by the Administrator of:

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

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

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

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

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

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

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

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

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

                                      4
<PAGE>

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

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

3.3  Notices etc.

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

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

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

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

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

3.4  Liability of Administrator:

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

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

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

                                      5
<PAGE>

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

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

     Subject to Clause 6 of the Mortgage Sale Agreement:

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

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

4.   Interest Rates

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

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

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

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

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

                                      6
<PAGE>

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

4.3  Interest Rate Shortfall:

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

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

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

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

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

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

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

                                      7
<PAGE>

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

4.4  Existing Borrowers' Re-Fix Rate:

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

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

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

                                      8
<PAGE>

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

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

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

5.   Administration of Mortgages

5.1  Collection of Payments:

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

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

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

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

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

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

                                      9
<PAGE>

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

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

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

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

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

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

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

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

5.2  Administration and Enforcement of Mortgages:

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

                                      10
<PAGE>

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

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

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

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

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

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

5.4  Trust:

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

                                      11
<PAGE>

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

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

5.5  Together Connections Mortgage Loans and Connections Mortgage Loans:

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

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

          (ii) do such other acts and things,

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

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

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

          (ii) do such other acts and things,

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

     (c)  Any notice, letter or other communication:

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

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

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

                                      12
<PAGE>

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

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

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

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

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

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

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

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

5.6  Statement as to Compliance

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

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<PAGE>

5.7  Independent Auditors' Annual Servicer Compliance Certificate

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

6.   No Liability

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

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

7.   New Mortgage Loans

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

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

8.   Product Switching and Further Advances

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

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<PAGE>

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

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

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

9.   Redemption of Mortgages

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

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

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

10.  Powers of Attorney

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

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

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

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

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

                                      15
<PAGE>

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

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

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

11.  Costs and Expenses

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

12.  Information

12.1 Maintenance of Records:

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

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

                                      16
<PAGE>

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

12.2 Use of information technology systems:

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

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

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

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

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

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

                                      17
<PAGE>

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

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

12.4 Information Covenants:

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

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

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

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<PAGE>

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

13.  Remuneration

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

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

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

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

14.  Insurances

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

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

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

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

     (c)  invalidate any Insurance Policy.

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

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<PAGE>

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

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

14.5 MIG Policies:

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

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

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

14.6 Buildings Policies:

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

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

                                      20
<PAGE>

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

14.7 Life Policies:

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

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

15.  Title Deeds

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

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

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

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

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<PAGE>

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

16.  Data Protection

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

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

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

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

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

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

                                      22
<PAGE>

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

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

17.  Covenants and Representations and Warranties of Administrator

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

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

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

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

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

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

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

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

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

                                      23
<PAGE>

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

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

18.  Services Non-exclusive

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

19.  Termination

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

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

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

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

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

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

                                      24
<PAGE>

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

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

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

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

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

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

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

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

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

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

                                      25
<PAGE>

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

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

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

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

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

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

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

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

                                      26
<PAGE>

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

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

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

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

20.  Further Assurances

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

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

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

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

21.  Miscellaneous

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

                                      27
<PAGE>

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

21.2 Reduction of Fees: In the event that:

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

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

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

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

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

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

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

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

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

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<PAGE>

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

22.  Confidentiality

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

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

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

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

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

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

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

                                      29
<PAGE>

23.  No Partnership

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

24.  Assignment

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

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

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

25.  Security Trustee; Authorised Third Party

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

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

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

                                      30
<PAGE>

26.  New Intercompany Loan Agreements

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

27.  Non Petition Covenant; Limited Recourse

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

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

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

     (b)  in relation to Funding:

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

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

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

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

                                      31
<PAGE>

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

28.  Amendments and Waiver

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

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

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

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

29.  Notices

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

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

                                      32
<PAGE>

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

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

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

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

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

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

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

30.  Third Party Rights

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

31.  Execution in Counterparts; Severability

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

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

                                      33
<PAGE>

32.  Governing Law and Submission to Jurisdiction

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

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

33.  Process Agent

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

34.  Appropriate Forum

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

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

                                      34
<PAGE>

                                  SCHEDULE 1

                                 THE SERVICES

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

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

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

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

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

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

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

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

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

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

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

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

                                      35
<PAGE>

                                  SCHEDULE 2

                      FORM OF INVESTORS' QUARTERLY REPORT

Granite Finance Trustees Limited
Monthly Report

Date of Report [  ]

Mortgages

Number of Mortgages in Pool                                                [  ]

Current Balance                                                       (GBP)[  ]

Opening Trust Assets                                                  (GBP)[  ]

Funding Share                                                         (GBP)[  ]

Funding Share Percentage                                                   [  ]%

Seller Share                                                          (GBP)[  ]

Seller Share Percentage                                                    [  ]%

Minimum Seller Share (Amount)                                         (GBP)[  ]

Minimum Seller Share (% of Total)                                          [  ]%

Arrears Analysis of Non Repossessed Mortgages

                             Number               Principal              Arrears

Less than [  ] month         [  ]                 [  ]                   [  ]

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

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

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

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

[  ] months +                [  ]                 [  ]                   [  ]

Total                        [  ]                 [  ]                   [  ]

                                      36
<PAGE>

Properties in Possession     Number               Principal              Arrears

Total                        [  ]                 [  ]                   [  ]

Properties in Possession

Number Brought Forward                                                   [  ]

Repossessed                                                              [  ]

Sold                                                                     [  ]

Number Carried Forward                                                   [  ]

Average Time from                                                        [  ]
Possession to Sale

Average Arrears at Sale                                                  [  ]

Repossessed                                                              [  ]

MIG Claims Submitted                                                     [  ]

MIG Claims Outstanding                                                   [  ]

Average Time from Claim to Payment                                       [  ]

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

Substitution                                  Number                  Principal

Substituted this period (this month)          [  ]                    [  ]

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

CPR Analysis                                  Monthly                 Annualised

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

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

Weighted Average Seasoning (by value)         [  ]

Average Loan Size                             [  ]

Weighted Average LTV (by value)               [  ]%

                                      37
<PAGE>

Product Breakdown

Fixed Rate                                    [  ]%

Flexible -Together                            [  ]%

LTV Levels Breakdown                          Number                    Value

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ] - [  ]%                                  [  ]                      [  ]

[  ]% +                                       [  ]                      [  ]

Totals                                        [  ]                      [  ]

NR Current Existing Borrowers' SVR                                      [  ]

Effective Date of Change                                                [  ]

                                      38
<PAGE>

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

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

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

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

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

Series 2

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

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

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

Issuer Reserve Fund Requirement                                                             (GBP)[  ]

Balance brought forward                                                                     (GBP)[  ]

Drawings this period

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

Excess Spread                                                                               (GBP)[  ]

Current Balance                                                                             (GBP)[  ]

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

Funding Reserve Balance                                                                     (GBP)[  ]

Funding Reserve %                                                                                [  ]%
</TABLE>

                                      39
<PAGE>

                                  SCHEDULE 3

                 ADMINISTRATOR REPRESENTATIONS AND WARRANTIES

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

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

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

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

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

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

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

     (c)  conflict with its constitutional documents; or

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

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

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

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

                                      40
<PAGE>

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

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

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

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

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

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

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

10.  Ranking of Claims

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

11.  Information in Prospectus and Offering Circular:

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

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

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

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

                                      41
<PAGE>

                                  SCHEDULE 4

                            AUTHORISED THIRD PARTY

1.   Agreement to Allow Delegation

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

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

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

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

     (together the "Back-up Functions")

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

2.   Appointment and Payment

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

3.   Delegation

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

                                      42
<PAGE>

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

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

4.   Ratification

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

5.   Limitations on the Responsibility of the Security Trustee

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

                                      43
<PAGE>

6.   Exoneration

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

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

                                      44
<PAGE>

                                  SCHEDULE 5

                          MINIMUM SERVICING STANDARDS

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

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

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

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

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

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

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

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

                                      45
<PAGE>

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

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

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

10.  (Ledgers)

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

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

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

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

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

                                      46
<PAGE>

                                EXECUTION PAGE

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

____________________________
Authorised Signatory

Name:

Title:

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

____________________________
Authorised Signatory

Name:

Title:

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

____________________________
Authorised Signatory

Name:

Title:

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

____________________________
Authorised Signatory

Name:

Title:

                                      47EXHIBIT 10.1

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

                          GRANITE MORTGAGES 01-1 PLC

                          GRANITE MORTGAGES 01-2 PLC

                          GRANITE MORTGAGES 02-1 PLC

                          GRANITE MORTGAGES 02-2 PLC

                          GRANITE MORTGAGES 03-1 PLC

                          GRANITE MORTGAGES 03-2 PLC

                          GRANITE MORTGAGES 03-3 PLC

                          GRANITE MORTGAGES 04-1 PLC

                               NORTHERN ROCK PLC

                       GRANITE FINANCE TRUSTEES LIMITED

                        GRANITE FINANCE FUNDING LIMITED

                                    - and -

                                    OTHERS

              _________________________________________________

                          MASTER DEFINITIONS SCHEDULE
                             EIGHTH AMENDMENT DEED
              _________________________________________________

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

                                      10
<PAGE>

THIS MASTER DEFINITIONS SCHEDULE EIGHTH AMENDMENT DEED is made on 26 May 2004

BETWEEN:

(1)  Granite Mortgages 01-1 PLC (registered number 4129652), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "First Issuer");

(2)  Granite Mortgages 01-2 PLC (registered number 4270015), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "Second Issuer");

(3)  Granite Mortgages 02-1 PLC (registered number 4340767), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "Third Issuer");

(4)  Granite Mortgages 02-2 PLC (registered number 4482804), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "Fourth Issuer");

(5)  Granite Mortgages 03-1 PLC (registered number 4598035), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "Fifth Issuer");

(6)  Granite Mortgages 03-2 PLC (registered number 4684567), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "Sixth Issuer");

(7)  Granite Mortgages 03-3 PLC (registered number 4823268), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "Seventh Issuer");

(8)  Granite Mortgages 04-1 PLC (registered number 4959572), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
     (the "Eighth Issuer");

(9)  Northern Rock PLC, 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 (1) Seller; (2)
     Cash Manager; (3) Start-up Loan Provider; (4) Administrator; (5) Account
     Bank; (6) Funding GIC Provider; (7) Mortgages Trustee GIC Provider; (8)
     Basis Rate Swap Provider in relation to the Previous Issuers; and (8)
     Issuer Cash Manager in relation to the Previous Issuers;

(10) Granite Finance Funding Limited (registered number 79308), a private
     limited company incorporated under the laws of Jersey, Channel Islands,
     acting through its branch at 69 Park Lane, Croydon CR9 1TQ as Funding;

(11) Granite Finance Trustees Limited (registered number 79309), a private
     limited company incorporated under the laws of Jersey whose registered
     office is at 22

                                      1
<PAGE>

     Grenville Street, St. Helier, Jersey JE4 8PX, Channel Islands as the
     Mortgages Trustee;

(12) Lloyds TSB Bank PLC (registered number 2065), a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at 25 Gresham Street, London EC2V 7HN, in its capacity as (1) Account
     Bank; (2) a Collection Bank; (3) Funding GIC Provider, (4) Stand-by
     Funding GIC Provider and (5) Stand-by Account Bank;

(13) Lloyds TSB Bank PLC, Jersey International Branch, acting through its
     office at 4 Bond Street, St. Helier, Jersey JE4 8ZE, Channel Islands as
     Jersey Account Bank;

(14) The Bank of New York, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E13 5AL in its
     capacity as (1) Security Trustee and (2) Note Trustee in relation to the
     Previous Issuers;

(15) Mourant & Co. Capital (SPV) Limited, a private limited company
     incorporated under the laws of England and Wales whose registered office
     is 69 Park Lane, Croydon CR9 1TQ, as Corporate Services Provider for
     Funding;

(16) Mourant & Co. Limited, a company incorporated under the laws of Jersey,
     registered number 36615, whose registered office is at 22 Grenville
     Street, St. Helier, Jersey JE4 8PX, Channel Islands, as Corporate
     Services Provider for the Mortgages Trustee;

(17) Citibank, N.A., acting through its offices at Citigroup Centre, Canada
     Square, Canary Wharf, London E14 5LB, in its capacity as (1) an agent
     bank; (2) a principal paying agent; (3) a registrar; (4) a transfer
     agent; (5) Issuer Account Bank in relation to the Previous Issuers; and
     (6) Euro Currency Swap Provider in relation to the Euro Notes issued by
     the Fifth Issuer, the Seventh Issuer and the Eighth Issuer and acting
     through its office at 111 Wall Street, 14th Floor, New York, New York
     10005, U.S.A., as (1) a U.S. paying agent in relation to the Previous
     Issuers, and (2) a note depository in relation to the First Issuer;

(18) Banque AIG, London Branch, whose registered branch office is 5th Floor,
     One Curzon Street, London W1J 5RT as Currency Swap Provider in relation
     to the Notes issued by the First Issuer and the Dollar Currency Swap
     Provider in relation to the Dollar Notes issued by the Sixth Issuer and
     in relation to the Series 2 Class A1 Notes issued by the Eighth Issuer;

(19) JPMorgan Chase Bank whose registered branch office is at 125 London Wall,
     London EC2Y 4AJ as Currency Swap Provider in relation to the Notes issued
     by the Second Issuer;

(20) Credit Suisse First Boston International, whose registered branch office
     is at One Cabot Square, London E14 4QJ, as Currency Swap Provider in
     relation to the Notes issued by the Third Issuer;

(21) CDC IXIS Capital Markets, a company incorporated in France and registered
     in the Trade and Companies Register under number Paris B 340 706 407
     acting through its branch at Cannon Bridge, 25 Dowgate Hill, London EC4R
     2GN, as Currency Swap

                                      2
<PAGE>

     Provider in relation to the Notes issued by the Fourth Issuer and
     Interest Rate Swap Provider in relation to the Series 3 Class A Notes
     issued by the Sixth Issuer;

(22) ABN Amro Bank N.V., acting through its office at 199 Bishopsgate, London
     EC2M 3XW as Euro Currency Swap Provider in relation to the Euro Notes
     issued by the Sixth Issuer;

(23) Swiss Re Financial Products Corporation, a company whose registered
     branch office is at 55 East 52nd Street, New York, New York 10055, as
     Dollar Currency Swap Provider in relation to the Dollar Notes issued by
     the Seventh Issuer and in relation to the Series 1 Dollar Notes issued by
     the Eighth Issuer;

(24) Law Debenture Corporate Services Limited (registered number 3388362) a
     private limited company incorporated under the laws of England and Wales
     whose registered office is at Fifth Floor, 100 Wood Street, London EC2V
     7EX as the Corporate Services Provider for the Previous Issuers;

(25) The Law Debenture Intermediary Corporation p.l.c. (registered number
     1525148) whose registered office is at Fifth Floor, 100 Wood Street,
     London EC2V 7EX as Share Trustee;

(26) GPCH Limited (registered number 4128437), a private limited company
     incorporated under the laws of England whose registered office is a Fifth
     Floor, 100 Wood Street, London EC2V 7EX as Post-Enforcement Call Option
     Holder for the Previous Issuers; and

(27) Granite Finance Holdings Limited (registered number 4127787) whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as
     Holdings;

WHEREAS:

(A)  On 26 March 2001, the Master Definitions Schedule was signed for the
     purposes of identification by Brown & Wood MNP and Clifford Chance
     Limited Liability Partnership and on 28 September 2001, 20 March 2002, 23
     September 2002, 27 January 2003, 21 May 2003, 24 September 2003 and 26
     January 2004 respectively, that Master Definitions Schedule was amended
     (the "Existing Master Definitions Schedule").

(B)  The parties to this Deed now wish to amend and restate the Existing
     Master Definitions Schedule pursuant to the provisions set out in this
     Deed thereby amending and restating the Source Documents (as defined
     below) to which they are a party.

(C)  The parties to this Deed are party to various documents (each a "Source
     Document") to which all or part of the Existing Master Definitions
     Schedule applies or which incorporates by reference all or part of the
     Existing Master Definitions Schedule.

                                      3
<PAGE>

NOW IT IS HEREBY AGREED as follows:

1.   INTERPRETATION

1.1. The Existing Master Definitions Schedule as amended and restated pursuant
     hereto shall be referred to herein as the "Eighth Amended and Restated
     Master Definitions Schedule".

1.2. The provisions of the Eighth Amended and Restated Master Definitions
     Schedule are expressly and specifically incorporated into and shall apply
     to this Deed.

1.3. As used in the Existing Master Definitions Schedule as amended and
     restated by this Deed, the terms "Master Definitions Schedule", "herein",
     "hereto" and other words of similar import shall mean or refer to the
     Eighth Amended and Restated Master Definitions Schedule, unless the
     context otherwise specifically requires.

2.   AMENDMENTS TO THE EXISTING MASTER DEFINITIONS SCHEDULE AND THE SOURCE
     DOCUMENTS

     Each of the parties to this Amendment and Restatement Deed agree that,
     with effect from (and including) the date of this Deed:

     (a)  the Existing Master Definitions Schedule is amended and restated in
          the form of Appendix 1 hereto.

     (b)  each Source Document to which it is a party shall be amended so that
          each reference in each Source Document to the Master Definitions
          Schedule shall be a reference to the Eighth Amended and Restated
          Master Definitions Schedule.

3.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

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

4.   COUNTERPARTS

     This Deed of Amendment and Restatement 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 of Amendment and
     Restatement.

5.   GOVERNING LAW

5.1. This Deed of Amendment and Restatement 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

                                      4
<PAGE>

     disputes, which may arise out of or in connection with this Deed and, for
     such purposes, irrevocably submits to the jurisdiction of such courts.

                                      5
<PAGE>

                                EXECUTION PAGE

IN WITNESS WHEREOF this Eighth Amendment and Restatement 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>
The First Issuer

Executed by
GRANITE MORTGAGES 01-1 PLC
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

The Second Issuer

Executed by
GRANITE MORTGAGES 01-2 PLC
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

                                       6
<PAGE>

The Third Issuer

Executed by
GRANITE MORTGAGES 02-1 PLC
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

The Fourth Issuer

Executed by
GRANITE MORTGAGES 02-2 PLC
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

The Fifth Issuer

Executed by
GRANITE MORTGAGES 03-1 PLC
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

                                       7
<PAGE>

The Sixth Issuer

Executed by
GRANITE MORTGAGES 03-2 PLC
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

The Seventh Issuer

Executed by
GRANITE MORTGAGES 03-3 PLC
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

The Eighth Issuer

Executed by
GRANITE MORTGAGES 04-1 PLC
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name Clive Rakestrow
                                                                                 ---------------------------------------

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name Sharon Tyson
                                                                                 ---------------------------------------

                                       8
<PAGE>

The Seller, the Cash Manager, the Start-Up Loan Provider, an Account Bank, the
Funding GIC Provider, the Mortgages Trustee GIC Provider, the Administrator
and the Issuer Cash Manager and Basis Swap Provider in relation to the
Previous Issuers

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

                                                                            Name __________________________________

Signature   _______________________________________
            Witness

Full name   _______________________________________
Occupation  Solicitor
            ---------------------------------------
Address     c/o Sidley Austin Brown & Wood
            ---------------------------------------
            Woolgate Exchange
            ---------------------------------------
            25 Basinghall Street
            ---------------------------------------
            London EC2V 5HA
            ---------------------------------------

Funding

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

                                                                              By ____________________________________
                                                                                 Director/Secretary

                                                                            Name ____________________________________

The Mortgages Trustee

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

                                                                              By ____________________________________
                                                                                 Director/Secretary

                                                                            Name ____________________________________

                                       9
<PAGE>

An Account Bank, a Collection Bank, a Funding GIC Provider, the Standby Funding GIC Provider and the Standby Account Bank

Executed by
LLOYDS TSB BANK PLC
as its deed as follows:
Signed for and on its behalf by one of its duly                               By __________________________________
authorised attorneys/signatories                                                 Duly Authorised Attorney/Signatory

                                                                            Name __________________________________

Signature   _______________________________________
            Witness

Full name   _______________________________________
Occupation  Solicitor
            ---------------------------------------
Address     c/o Sidley Austin Brown & Wood
            ---------------------------------------
            Woolgate Exchange
            ---------------------------------------
            25 Basinghall Street
            ---------------------------------------
            London EC2V 5HA
            ---------------------------------------

The Jersey Account Bank

Executed by
LLOYDS TSB BANK PLC, JERSEY
INTERNATIONAL BRANCH
as its deed as follows:
Signed for and on its behalf by one of its duly                               By __________________________________
authorised attorneys/signatories                                                 Duly Authorised Attorney/Signatory

                                                                            Name __________________________________

Signature   _______________________________________
            Witness

Full name   _______________________________________
Occupation  Solicitor
            ---------------------------------------
Address     c/o Sidley Austin Brown & Wood
            ---------------------------------------
            Woolgate Exchange
            ---------------------------------------
            25 Basinghall Street
            ---------------------------------------
            London EC2V 5HA
            ---------------------------------------

The Security Trustee and Note Trustee

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

                                                                            Name __________________________________

                                       10
<PAGE>

The Corporate Services Provider for Funding

Executed by
MOURANT & CO. CAPITAL (SPV)
LIMITED
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by one of its directors                             Director
and by another of its directors/its secretary
                                                                            Name ____________________________________

                                                                              By ____________________________________
                                                                                 Director/Secretary

                                                                            Name ____________________________________

The Corporate Services Provider for the Mortgages Trustee

Executed by
MOURANT & CO. LIMITED
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by one of its directors                             Director
and by another of its directors/its secretary
                                                                            Name ____________________________________

                                                                              By ____________________________________
                                                                                 Director/Secretary

                                                                            Name ____________________________________

                                       11
<PAGE>

The agent bank, a principal paying agent, a registrar, a transfer agent, the
Issuer Account Bank in relation to the Previous Issuers and a note depository
in relation to the First Issuer

Executed by
CITIBANK, N.A.
as its deed as follows:
Signed for and on its behalf by one of its duly                               By __________________________________
authorised attorneys/signatories                                                 Duly Authorised Attorney/Signatory

                                                                            Name __________________________________

A US paying agent in relation to the Previous Issuers

Executed by
CITIBANK, N.A.
as its deed as follows:
Signed for and on its behalf by one of its duly                               By __________________________________
authorised attorneys/signatories                                                 Duly Authorised Attorney/Signatory

                                                                            Name __________________________________

The Currency Swap Provider in relation to the Notes issued by the First Issuer
and Dollar Currency Swap Provider in relation to the Dollar Notes issued by
the Sixth Issuer and the Series 2 Class A1 Notes issued by the Eighth Issuer

Executed by
BANQUE AIG, LONDON BRANCH
as its deed as follows:
Signed for and on its behalf by one of its duly                               By __________________________________
authorised attorneys/signatories                                                 Duly Authorised Attorney/Signatory

                                                                            Name __________________________________

The Currency Swap Provider in relation to the Notes issued by the Second Issuer

Executed by
JPMORGAN CHASE BANK
as its deed as follows:
Signed for and on its behalf by one of its duly                               By __________________________________
authorised attorneys/signatories                                                 Duly Authorised Attorney/Signatory

                                                                            Name __________________________________

                                       12
<PAGE>

The Currency Swap Provider in relation to the Notes issued by the Third Issuer

Executed by
CREDIT SUISSE FIRST BOSTON INTERNATIONAL
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by one of its directors                             Director
and by another of its directors/its secretary
                                                                            Name ____________________________________

                                                                              By ____________________________________
                                                                                 Director/Secretary

                                                                            Name ____________________________________

The Currency Swap Provider in relation to the Notes issued by the Fourth
Issuer and the Euro Currency Swap Provider in relation to the Euro Notes
issued by the Sixth Issuer

Executed by
CDC IXIS CAPITAL MARKETS
as its deed as follows:
Signed for and on its behalf by one of its duly
authorised attorneys and by another of its duly
authorised attorneys
                                                                              By ____________________________________
                                                                                 Attorney

   Signature  ___________________________________                           Name
              Witness

   Full name  ___________________________________
  Occupation  ___________________________________
     Address  ___________________________________
              ___________________________________
              ___________________________________
              ___________________________________

                                                                              By ____________________________________
                                                                                 Attorney

   Signature  ___________________________________                           Name
              Witness

   Full name  ___________________________________
  Occupation  ___________________________________
     Address  ___________________________________
              ___________________________________
              ___________________________________
              ___________________________________

                                       13
<PAGE>

The Interest Rate Swap Provider in relation to the Series 3 Class A Notes issued
by the Sixth Issuer

Executed by
ABN AMRO BANK N.V.
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by two of its duly                                  Duly Authorised Signatory
authorised signatories
                                                                            Name ____________________________________

                                                                              By ____________________________________
                                                                                 Duly Authorised Signatory

                                                                            Name ____________________________________

The Dollar Currency Swap Provider in relation to the Dollar Notes issued by
the Seventh Issuer and in relation to the Series 1 Dollar Notes issued by the
Eighth Issuer

Executed by
SWISS RE FINANCIAL PRODUCTS
CORPORATION
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by its duly authorised                              Duly Authorised Signatory
signatory
                                                                            Name

The Euro  Currency  Swap  Provider in  relation to the Euro Notes  issued by the
Fifth Issuer, the Seventh Issuer and the Eighth Issuer

Executed by
CITIBANK N.A.
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by its duly authorised                              Duly Authorised Signatory
signatory
                                                                            Name

                                       14
<PAGE>

The Corporate Services Provider for the Previous Issuers

Executed by
LAW DEBENTURE CORPORATE
SERVICES LIMITED
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by one of its directors                             Director
and by another of its directors/its secretary
                                                                            Name ____________________________________

                                                                              By ____________________________________
                                                                                 Director/Secretary

                                                                            Name ____________________________________

The Share Trustee

Executed by
THE LAW DEBENTURE INTERMEDIARY
CORPORATION P.L.C
as its deed as follows:                                                       By ____________________________________
Signed for and on its behalf by one of its directors                             Director
and by another of its directors/its secretary
                                                                            Name ____________________________________

                                                                              By ____________________________________
                                                                                 Director/Secretary

                                                                            Name ____________________________________

The Post-Enforcement Call Option Holder for the Previous Issuers

Executed by
GPCH LIMITED
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name _______________________________________

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name _______________________________________

                                       15
<PAGE>

Holdings

Executed by
GRANITE FINANCE HOLDINGS LIMITED
as its deed as follows:                                                       By _______________________________________
Signed for and on its behalf by one of its directors                             for and on behalf of LDC Securitisation
and by another of its directors/its secretary                                    Director No. 1 Limited

                                                                            Name _______________________________________

                                                                              By _______________________________________
                                                                                 for and on behalf of LDC Securitisation
                                                                                 Director No. 2 Limited

                                                                            Name _______________________________________
</TABLE>

                                       16
<PAGE>

                                  Appendix I
               Amended and Restated Master Definitions Schedule

                                       17
<PAGE>

                        GRANITE FINANCE TRUSTEES LIMITED

_______________________________________________________________________________

                           EIGHTH AMENDED AND RESTATED
                           MASTER DEFINITIONS SCHEDULE

                                Dated 26 May 2004

_______________________________________________________________________________

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

<PAGE>

             EIGHTH AMENDED AND RESTATED MASTER DEFINITIONS SCHEDULE

1.   Definitions

Words and expressions used in any document which incorporates this clause or to
which this clause applies shall have the same meanings as are set out in this
Master Definitions Schedule except so far as the context requires otherwise.

"1925 Act" means the Law of Property Act 1925;

"ACA Issuer" Granite Mortgages 04-2 plc and any new issuer designated as such;

"ACA Limit Amount" means, in respect of an ACA Issuer, an amount equal to the
greater of:

(A)  the product of:

     (i)  the product of (a) the Mortgages Trustee  Principal  Receipts for that
          Distribution  Date,  and (b)  the  Funding  Share  Percentage  or,  as
          applicable,  the Weighted Average Funding Share Percentage  applicable
          as at the later to occur of the immediately preceding Assignment Date,
          the  immediately   preceding   Funding   Contribution   Date  and  the
          immediately preceding Distribution Date; and

     (ii) the  quotient  of (a) the  Outstanding  Principal  Balance of such ACA
          Issuer's  Intercompany  Loan as at the immediately  preceding  Payment
          Date (after  taking into  account  principal  payments on such Payment
          Date)  less  the  aggregate  of  amounts  recorded  on  the  Principal
          Deficiency Ledger of such ACA Issuer (but only to the extent of Losses
          on the Mortgage Loans  allocated to such ACA Issuer and application of
          Funding  Available  Principal  Receipts to fund the Liquidity  Reserve
          Fund of such ACA  Issuer),  divided by (b) the  aggregate  Outstanding
          Principal  Balance  on all  Intercompany  Loans as at the  immediately
          preceding Payment Date (after taking into account  principal  payments
          on such Payment  Date) less the sum of (1) the  aggregate  Outstanding
          Principal Balance of all Special Repayment Notes and (2) the aggregate
          of amounts recorded on the Principal Deficiency Ledgers of all Issuers
          (but only to the extent of Losses on the Mortgage  Loans  allocated to
          an Issuer and application of Funding Available  Principal  Receipts to
          fund the Issuer Liquidity Reserve Fund of that Issuer); and

(B)  in respect of such ACA Issuer's Notes, the Controlled  Amortisation  Amount
     for each Class of Notes of such ACA Issuer as if an ACA  Trigger  Event had
     not occurred.

"ACA Trigger Event" means, in respect of any ACA Issuer, an event which occurs
when any Issuer fails to exercise its option to redeem its Notes on the
relevant Step-Up Date pursuant to the terms and conditions of its Notes;

"Accession Undertaking" means a Deed of Accession;

"Account Bank" means, in relation to the Mortgages Trustee or Funding, the
bank at which the Mortgages Trustee Bank Accounts or, in the case of Funding,
the Funding Bank Accounts are maintained from time to time, being:

(a)  in relation to the Mortgages Trustee Transaction Account, the Jersey
     Account Bank;

                                      2
<PAGE>

(b)  in relation to the Funding Transaction Account, the UK Account Bank;

(c)  in relation to the Mortgages Trustee GIC Account:

     (i)  up to 26 May 2004, the Jersey Account Bank;

     (ii) from (and including) 26 May 2004, Northern Rock,

(provided that during the period 26 May 2004 to the Distribution Date falling in
June 2004 (inclusive) the term "Account Bank" in relation to such account shall
mean both the Jersey Account Bank and Northern Rock, unless the context admits
otherwise);

(d)  in relation to the Funding GIC Account:

     (i)  up to 26 May 2004, the UK Account Bank; and

     (ii) from (and including) 26 May 2004, Northern Rock,

(provided that during the period 26 May 2004 to the Payment Date falling in
June 2004 (inclusive) the term "Account Bank" in relation to such account
shall mean both the UK Account Bank and Northern Rock, unless the context
admits otherwise); and

(e)  in relation to the Funding Issuer GIC Accounts:

     (i)  in respect of any Funding (Issuer) GIC Account established prior to
          26 May 2004, the UK Account Bank; and

     (ii) in respect of any Funding (Issuer) GIC Account established on or
          after 26 May 2004 (including, for the avoidance of doubt, the
          Funding (Issuer) GIC Account relating to Granite Mortgages 04-2
          plc), Northern Rock,

or any other Authorised Entity Appointed by the Mortgages Trustee or Funding
in accordance with the Transaction Documents;

"Accrued Interest" means, in respect of any Mortgage Loan as at any date (the
"relevant date"), the aggregate of all interest accrued but not yet due and
payable on such Mortgage Loan from and including the Monthly Payment Date
immediately preceding the relevant date until (but excluding) the relevant
date;

"Administration Agreement" means the agreement entered into on or before the
Initial Closing Date, between the Administrator, the Mortgages Trustee,
Funding, the Seller and the Security Trustee pursuant to which the
administrator agrees to provide administration services to the Mortgages
Trustee and the Beneficiaries in relation to the Mortgage Loans and their
Related Security comprised in the Mortgage Portfolio as may be amended,
restated, novated, varied or supplemented from time to time and shall include
any additional and/or replacement administration agreement entered into by
such parties from time to time;

"Administration Fee" has the meaning given to it in Clause 13.1
(Administration Fee) of the Administration Agreement;

"Administration Fee Rate" means 0.08% per annum (inclusive of VAT) on the
amount of the Funding Share of the Trust Property as determined on that
Distribution Date in respect of the then current Trust Calculation Period, but
only to the extent that the Mortgages Trustee has sufficient funds available
to pay such amount in accordance with the Mortgages Trustee Revenue Priority
of Payments or, at any time when the Administrator is not Northern Rock, such
other amount as set between such

                                      3
<PAGE>

substitute administrator and the Mortgages Trustee from time to time;

"Administration Procedures" means the administration, arrears and enforcement
policies and procedures forming part of the Seller's Policy from time to time
or, at any time when the Administrator is not also the Seller, the policies
and procedures from time to time which would be adopted by a reasonable,
prudent mortgage lender and, in either case, shall include the services set
out in Schedule 1 to the Administration Agreement;

"Administrator" means Northern Rock or such other person as may from time to
time be appointed as administrator of the Mortgage Portfolio pursuant to the
Administration Agreement;

"Administrator Termination Event" means any of the events specified in Clause
19 (Termination) of the Administration Agreement;

"Alternative Insurance Requirements" means the Seller's standard document
entitled Alternative Insurance Requirements, and any other document containing
similar recommendations or requirements which is sent to Borrowers in
accordance with the Administration Procedures;

"Arrears of Interest" means as at any date and in relation to any Mortgage
Loan, interest (other than Capitalised Interest or Accrued Interest) on such
Mortgage Loan which is currently due and payable on such date;

"Arrears or Step-Up Trigger Event" means an event which occurs when (i) the
Outstanding Principal Balance of the Mortgage Loans in arrears for more than
90 days divided by the Outstanding Principal Balance of all of the Mortgage
Loans in the Mortgages Trust (expressed as a percentage) exceeds 2% or (ii) if
any Issuer fails to exercise its option to redeem its Notes on the relevant
Step-Up Date pursuant to the terms and conditions of its Notes;

"Asset Trigger Event" means the event that occurs when an amount is debited to
the Class A Principal Deficiency Sub Ledger established for any Issuer with
respect to the Class A Notes of that Issuer;

"Assignation of Guarantees" means an assignation to the Mortgages Trustee of
the Seller's right, title, benefit and interest in the Guarantees governed by
Scots law substantially in the form set out in Part 2 of Schedule 5 to the
Mortgage Sale Agreement;

"Assignment Date" means the date of assignment of any New Mortgage Portfolio
to the Mortgages Trustee in accordance with Clause 4 (Sale and Purchase of New
Mortgage Portfolios) of the Mortgage Sale Agreement;

"Assignment of Guarantees" means an assignment to the Mortgages Trustee of the
Seller's right, title, benefit and interest in the Guarantees governed by
English law substantially in the form set out in Part 1 of Schedule 5 to the
Mortgage Sale Agreement;

"Assignment of Insurance Contracts" means an assignment to the Mortgages
Trustee of the Seller's right, title, benefit and interest in the Insurance
Contracts substantially in the form set out in Schedule 3 (Assignment of
Insurance Contracts) to the Mortgage Sale Agreement;

"Auditors" or "auditors" means PricewaterhouseCoopers of 89 Sandyford Road,
Newcastle upon Tyne NE99 1PL or such other internationally recognised
independent firm of auditors selected from time to time by (in the case of the
Mortgages Trustee) the Mortgages Trustee or (in the case of Funding) Funding
or (in the case of any Issuer) the relevant Issuer and appointed by the
Mortgages

                                      4
<PAGE>

Trustee, Funding or, as the case may be, the relevant Issuer;

"Authorised Entity" means (a) any entity the short term and secured,
unsubordinated, and unguaranteed debt of which is rated at least A-1+ by S&P,
P-1 by Moody's and F1+ by Fitch or (b) any other entity approved in writing by
the Security Trustee and the Rating Agencies, in each case being an
institution authorised to carry on banking business (including accepting
deposits) under the Financial Services and Markets Act 2000;

"Authorised Institution" means an institution authorised to take deposits
under the Financial Services and Markets Act 2000;

"Authorised Investments" means:

(a)  sterling gilt-edged securities; and

(b)  sterling demand or time deposits, certificates of deposit and short-term
     debt obligations (including commercial paper) (which may include deposits
     into any account which earns a rate of interest related to LIBOR)
     provided that in all cases such investments have a maturity date of 90
     days or less and mature on or before the next following Payment Date or,
     in relation to any Mortgages Trustee Bank Account, the next following
     Distribution Date, and the short-term unsecured, unguaranteed and
     unsubordinated debt obligations of the issuing or guaranteeing entity or
     the entity with which the demand or time deposits are made (being an
     authorised institution under the Financial Services and Markets Act 2000)
     are rated at least equal to A-1+ by S&P, P-1 by Moody's and F1+ by Fitch
     or which are otherwise acceptable to the Rating Agencies (if they are
     notified in advance) to maintain the then-current rating of the Notes;

"Authorised Signatory" means in relation to:

(a)  any Issuer, any authorised signatory referred to in the relevant Issuer
     Account Mandates;

(b)  the Mortgages Trustee, any authorised signatory referred to in the
     Mortgages Trustee Account Mandates; and

(c)  Funding, any authorised signatory referred to in the Funding Account
     Mandates;

"Authorised Third Party" means any Person appointed by the Security Trustee
pursuant to the terms of Schedule 4 of the Administration Agreement and whom
the Rating Agencies have previously confirmed in writing to Funding and the
Security Trustee will not cause the then current ratings of the relevant
Issuer's Notes to be downgraded, withdrawn or qualified provided that if the
responsibilities that such appointed Person will assume include setting the
interest rate applicable to any Mortgage Loan, such Person must be a lender in
the UK residential mortgage market;

"Authorised Underpayment" means a Borrower Underpayment in respect of a
Flexible Mortgage Loan which is funded by, and does not exceed the amount of
any, Overpayments previously made by the Borrower in respect of such Flexible
Mortgage Loan or is otherwise permitted by the Seller in accordance with the
relevant Mortgage Conditions;

"Back-up Functions" has the meaning specified in Schedule 4 (Authorised Third
Party) to the Administration Agreement;

"Back-up Trigger Event" means any of the following circumstances:

(i)  failure by the Seller to comply with any of its obligations under the
     Mortgage Sale

                                      5
<PAGE>

     Agreement;

(ii) a Completion Event and any circumstances in connection therewith; or

(iii) an Administrator Termination Event and any circumstances in connection
     therewith;

"BACS" means the Bankers' Automated Clearing System as amended or supplemented
from time to time or any scheme replacing the same;

"BACS Amounts" means the amounts to be received by the Collection Banks from
Borrowers whether under the Direct Debiting Scheme or otherwise and to be
credited by the Collection Banks to the Collection Accounts on each Monthly
Payment Date, which each Collection Bank shall credit to the relevant
Collection Account;

"Bank Account Agreement" means the agreement entered into on or about the
Initial Closing Date between the Account Banks, the Mortgages Trustee, Funding
and the Security Trustee which governs the operation of the Mortgages Trustee
Bank Accounts and the Funding Bank Accounts other than the Funding (Issuer)
GIC Accounts, as has been and may be amended, restated, novated, varied or
supplemented from time to time and shall include any additional and/or
replacement bank account agreement entered into by such parties from time to
time;

"Bank of England Base Rate" means the Bank of England's official dealing rate
(the repo rate) as set by the UK Monetary Policy Committee and in the event
that such rate ceases to exist or becomes inappropriate as an index for the
Base Rate Pledge such alternative rate or index, not controlled by the Seller,
that the Seller considers to be the most appropriate in the circumstances;

"Barclays" means Barclays Bank PLC;

"Barclays Collection Account" means the account in the name of Northern Rock
as Administrator (sort code 20/59/42, account number 60655996) held with
Barclays Bank PLC and maintained subject to the Collection Bank Agreement
and/or such other accounts of Northern Rock held with Barclays Bank PLC as may
be utilised from time to time for the purpose of collecting sums due to
Northern Rock in respect of the Mortgage Loans;

"Base Rate Pledge" means the guarantee of the Seller that where Mortgage Loans
are eligible to be charged at or based on the Standard Variable Rate
(including Fixed Rate Mortgage Loans upon conversion from a Fixed Rate to the
Standard Variable Rate) and they are within the Base Rate Pledge Period, the
actual variable gross interest rate charged on such Mortgage Loans will be the
lower of the following two rates:

(a)  the Standard Variable Rate; or

(b)  the Bank of England base rate plus a margin which is determined by the
     Seller;

such variable gross interest rate to be applied as necessary within one month
of a change in the Bank of England base rate;

"Base Rate Pledge Period" means, in relation to any Mortgage Loan having the
benefit of the Base Rate Pledge, the period if any during which the Borrower
may be subject to an Early Repayment Charge;

"Basis Rate Swap" means, in relation to the First Issuer, the First Issuer
Basis Rate Swap and for any other Issuer, the swap transaction documented
under the Basis Rate Swap Agreement for such Issuer;

"Basis Rate Swap Agreement" means, in relation to the First Issuer, the First
Issuer Basis Rate Swap

                                      6
<PAGE>

Agreement and for any other Issuer, the ISDA Master Agreement, Schedule,
Confirmation and any credit support documents thereto entered into among such
Issuer, the Basis Rate Swap Provider, the Note Trustee and any credit support
provider, as may be amended, restated, novated, varied or supplemented from
time to time and shall include any additional and/or replacement basis rate
swap agreement entered into by such Issuer from time to time in connection
with the Notes issued by such Issuer;

"Basis Rate Swap Provider" means in relation to the First Issuer, the First
Issuer Basis Rate Swap Provider and for any other Issuer the basis rate swap
provider for such Issuer appointed from time to time in accordance with the
relevant Issuer Transaction Documents;

"Basis Rate Swap Provider Default" means the occurrence of an Event of Default
or a Downgrade Termination Event (as defined in the relevant Basis Rate Swap
Agreement) under a Basis Rate Swap Agreement where the Basis Rate Swap
Provider is the Defaulting Party or the Affected Party (as defined in the
relevant Basis Rate Swap Agreement);

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

"Block Buildings Policy" means the block buildings insurance policies listed
in paragraph 2 of Schedule 4 (Insurance Contracts) to the Mortgage Sale
Agreement and any endorsements or extensions thereto as issued from time to
time and any additional, replacement or substitute block insurance policy
which relates to Mortgage Loans in the Mortgages Trust from time to time;

"Borrower" means, in relation to each Mortgage Loan, the person or persons who
is or are named and defined as such in the relevant Mortgage Deed or such
other person or persons (other than a guarantor) who shall become legally
obligated to comply with such Borrower's obligations under the related
Mortgage Loan;

"Borrower Underpayment" means a situation where a Borrower makes a Monthly
Payment on its Mortgage Loan which is less than the required Monthly Payment
for that month;

"Buildings Policies" means

(a)  all buildings insurance policies relating to freehold English Properties
     or any Scottish Properties which have been taken out in the name of the
     relevant Borrower or in the name of the Borrower and the Seller or in the
     name of the Borrower with the Seller's interest noted, in accordance with
     the applicable Mortgage Conditions or the Alternative Insurance
     Requirements, including, without limitation, the Block Buildings Policy;
     and

(b)  all landlord's buildings insurance policies relating to leasehold
     Mortgaged Properties;

"Business Day" means, in relation to the First Issuer Notes and the First
Issuer Intercompany Loan, a day that is a London Business Day and a New York
Business Day;

"Capital Balance" means, in relation to any Mortgage Loan at any date, the
principal balance of that Mortgage Loan to which the Seller applies the
relevant interest rate at which interest on each Mortgage Loan applies;

"Capital Payment" means a Monthly Payment made by a Borrower under a Mortgage
Loan (other than a Flexible Mortgage Loan) that is greater by (GBP)200 or more
than the amount due for that month, and in respect of which the Borrower has
notified the Seller that such overpayment is intended to

                                      7
<PAGE>

reduce the Capital Balance of the related Mortgage Loan;

"Capitalised Arrears" means, in relation to any Mortgage Loan at any date,
interest or other amounts which are overdue in respect of such Mortgage Loan
and which as at such date have been added to the Capital Balance of such
Mortgage Loan either in accordance with the Mortgage Conditions or otherwise
by arrangement with the relevant Borrower;

"Capitalised Interest" means, in relation to any Mortgage Loan at any date,
interest which is overdue in respect of such Mortgage Loan and which as at
such date has been added to the Capital Balance of such Mortgage Loan in
accordance with the Mortgage Conditions or otherwise by arrangement with the
relevant Borrower (excluding for the avoidance of doubt any Arrears of
Interest which have not been so capitalised on such date);

"Cash" means cash and/or amounts standing to the credit of a bank account, as
the context shall require;

"Cashback" means, in relation to any Mortgage Loan, the agreement by the
Seller to pay an amount to the relevant Borrower upon completion of the
relevant Mortgage Loan;

"Cash Management Agreement" means the cash management agreement entered into
on or before the Initial Closing Date between the Cash Manager, the Mortgages
Trustee, Funding and the Security Trustee as may be amended, restated,
novated, varied or supplemented from time to time and shall include any
additional and/or replacement cash management agreement entered into by such
parties from time to time in accordance with the Transaction Documents;

"Cash Management Services" means, in relation to the any Issuer, the services
to be provided to such Issuer and the Note Trustee pursuant to the Issuer Cash
Management Agreement and in relation to the Mortgages Trustee and Funding, the
services to be provided to the Mortgages Trustee and Funding pursuant to the
Cash Management Agreement;

"Cash Manager" means Northern Rock or such other person or persons for the
time being acting, pursuant to the Cash Management Agreement, as agent for the
Mortgages Trustee, Funding and (following enforcement of the Funding Security)
the Security Trustee for the purposes of, inter alia, managing all cash
transactions and maintaining certain ledgers on behalf of the Mortgages
Trustee, Funding and (following enforcement of the Funding Security) the
Security Trustee;

"Cash Manager Termination Event" has the meaning given in Clause 12.1
(Termination) of the Cash Management Agreement;

"Cash Re-Draw" means a cash payment granted and made by the Seller in
accordance with the Mortgage Conditions at the request of a Borrower after
such Borrower has made an Overpayment in respect of any Flexible Mortgage Loan
but only to the extent of the Overpayment so made. The Seller is solely
responsible for funding any such Cash Re-draw;

"Cash Re-Draw Amount" means, in relation to any Cash Re-Draw, the amount of
monies advanced by the Seller to the relevant Borrower in respect of such Cash
Re-Draw;

"Cash Re-Draws Sub Ledger" means the sub-ledger of the Re-Draws Ledger, which
will be established by the Cash Manager on the Initial Closing Date in order
to record any Cash Re-Draws made on Flexible Mortgage Loans in the Trust
Property;

"Certificate of Title" means a solicitor's or licensed or qualified
conveyancer's report or certificate of title obtained by or on behalf of the
Seller in respect of each Mortgaged Property substantially in the

                                      8
<PAGE>

form of the pro-forma set out in the Standard Documentation;

"Class A Notes" means, in relation to the First Issuer, the Series 1 Class A
Notes and the Series 2 Class A Notes or any of them as the context may require
and, in relation to any New Issuer, the Class A Notes as defined in the
relevant Issuer Master Definitions Schedule;

"Class A Principal Deficiency Sub Ledger" means, in relation to any Issuer,
the sub-ledger of the Issuer Principal Deficiency Ledger of such Issuer
corresponding to the Class A Notes issued by such Issuer;

"Class B Notes" means, in relation to the First Issuer, the Series 1 Class B
Notes and the Series 2 Class B Notes or any of them as the context may require
and, in relation to any New Issuer, the Class B Notes as defined in the
relevant Issuer Master Definitions Schedule;

"Class B Principal Deficiency Sub Ledger" means, in relation to any Issuer,
the sub-ledger of the Issuer Principal Deficiency Ledger of such Issuer
corresponding to the Class B Notes issued by such Issuer;

"Class C Notes" means, in relation to the First Issuer, the Series 1 Class C
Notes and the Series 2 Class C Notes or any of them as the context may require
and, in relation to any New Issuer, the Class C Notes as defined in the
relevant Issuer Master Definitions Schedule;

"Class C Principal Deficiency Sub Ledger" means, in relation to any Issuer,
the sub-ledger of the Issuer Principal Deficiency Ledger of such Issuer
corresponding to the Class C Notes issued by such Issuer;

"Class D Notes" means, in relation to the Second Issuer, the Series 2 Class D
Notes and in relation to any New Issuer, the Class D Notes as defined in the
Issuer Master Definitions Schedule relating to that New Issuer;

"Clearstream, Luxembourg" means Clearstream Banking, societe anonyme;

"Closing Date" means, in relation to the First Issuer, the Initial Closing
Date and, in relation to any New Issuer, the date of any issue of New Notes by
a New Issuer;

"Closing Trust Property" means the Initial Mortgage Portfolio assigned by the
Seller to the Mortgages Trustee on the Initial Closing Date;

"Collection Account" means the Barclays Collection Account, the Lloyds TSB
Collection Account and any other account in the name of Northern Rock which is
from time to time used for the purpose of collecting, directly or indirectly,
monies due in respect of Mortgage Loans and/or the Related Security;

"Collection Bank" means any of Barclays, acting through its branch at Percy
Street, Newcastle upon Tyne NE99 1JP and Lloyds TSB acting through its branch
at City Office, Bailey Drive, Gillingham Business Park, Kent ME8 0LS and/or
such other banks as may be appointed from time to time under and in accordance
with the Transaction Documents;

"Collection Bank Agreement" means the collection bank agreement entered into
on or about the Initial Closing Date between the Collection Banks, Mortgages
Trustee, Funding, the Seller and the Administrator as may be amended,
restated, novated, varied or supplemented from time to time and shall include
any additional and/or replacement collection bank agreement entered into by
such parties from time to time in accordance with the Transaction Documents;

                                      9
<PAGE>

"Combined Credit Balance" means the average monthly cleared credit balance of
certain accounts of the Borrower held with the Seller which, pursuant to the
Together Connection Conditions, are required to be deducted from, among other
things, the balance of the Together Connections Mortgage Loan in calculating
the Together Connections Benefit;

"Combined Debit Balance" means the aggregate of the outstanding balances of:

(a)  a Borrower's Together Connections Mortgage Loan; and

(b)  certain other products held with the Seller,

from which the Combined Credit Balance is deducted in calculating the Together
Connections Benefit;

"Common Depositary" means Citibank, N.A., in its capacity as common depositary
for Euroclear and Clearstream, Luxembourg, in relation to the First Issuer
Notes, the CDIs (as defined in the Issuer Master Definitions Schedule relating
to the First Issuer) and, in relation to any New Notes, the Reg S Global Note
Certificates;

"Completion Event" means a Perfection Event;

"Connection Conditions" means the Mortgage Conditions of the Seller identified
as Connection Conditions;

"Connections Benefit" means the amount by which:

(a)  the interest that would be payable on the Connections Debit Balance at
     the Connection Interest Rate exceeds:

(b)  the interest at the Connection Interest Rate that would be payable on the
     amount by which the Connections Debit Balance exceeds the Connections
     Combined Credit Balance;

"Connections Combined Credit Balance" means the average monthly cleared credit
balance in a Borrower's linked Save Direct deposit account (a deposit account
operated by a dedicated savings division of the Seller) and/or current account
with the Seller;

"Connections Debit Balance" means the outstanding balance on a Connections
Mortgage Loan from which the Connections Combined Credit Balance is deducted
in calculating the Connections Benefit;

"Connection Interest Rate" means the rate or rates of interest which are
applicable to, amongst other things, a Together Connections Mortgage Loan and
a Connections Mortgage Loan, and is calculated in accordance with the Together
Connection Conditions and the Connection Conditions, respectively;

"Connections Mortgage Loan" means a type of Flexible Mortgage Loan which has
the same basic features as a Together Connections Mortgage Loan but without
the facility for an unsecured loan or credit card;

"Conditions" or "Terms and Conditions" means in relation to any Notes issued
by any Issuer, the terms and conditions to be endorsed 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 and others, 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;

"Contingency Insurance Policy" means the contingency insurance policy
identified in paragraph

                                      10
<PAGE>

2(d) of Schedule 4 (Insurance Contracts) to the Mortgage Sale Agreement and
any endorsements or extensions thereto as issued from time to time and any
additional, replacement or substitute contingency insurance policy which
relates to Mortgage Loans in the Mortgages Trust from time to time;

"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;

"Contributions Ledger" means the ledger created to record (i) the making by
Funding to the Mortgages Trustee of Contributions to the Mortgages Trust
pursuant to the Mortgages Trust Deed (ii) the making by the Seller to the
Mortgages Trustee of Contributions to the Mortgages Trust pursuant to the
Mortgages Trust Deed (iii) the payment by the Mortgages Trustee to the Seller
of either (a) amounts of Initial Purchase Price for the sale of any New
Mortgage Portfolio which is acquired by the Mortgages Trustee from the Seller
under the provisions of Mortgage Sale Agreement (b) amounts of Deferred
Purchase Price in accordance with the Mortgage Sale Agreement and (iv) the
payment by the Mortgages Trustee to the Seller of any Special Distribution in
accordance with the Mortgages Trust Deed;

"Controlled Amortisation Amount" means on any Payment Date prior to the
occurrence of a Trigger Event or enforcement of the Issuer Security:

(a)  in relation to any Note or class of Notes issued by an Issuer which is a
     Controlled Amortisation Note, the maximum aggregate principal amount
     which may be repaid by such Issuer to the relevant Noteholder or
     Noteholders of such class on such Payment Date in accordance with the
     relevant Conditions and the Issuer Cash Management Agreement of such
     Issuer; or

(b)  in relation to the Intercompany Loan of any Issuer, the maximum aggregate
     principal amount which may be repaid by Funding to such Issuer in respect
     of such Intercompany Loan on such Payment Date (which will be equal to
     the aggregate of the Controlled Amortisation Amounts due on such Payment
     Date under the Notes issued by such Issuer);

"Controlled Amortisation Note" means any Note issued by an Issuer pursuant to
which prior to the occurrence of a Trigger Event or enforcement of the Issuer
Security, the Conditions of such Note impose a limit on the amount of
principal which may be repaid by such Issuer to the relevant Noteholder in
respect of such Note on any Payment Date ;

"Corporate Services Agreement" means

(a)  in relation to any Issuer, the corporate services agreement entered into
     on or before the Closing Date of the issue of the relevant Notes among,
     inter alios, the relevant Corporate Services Provider, Holdings, the
     Post-Enforcement Call Option Holder and such Issuer, for the provision by
     the Corporate Services Provider of certain corporate services, and

(b)  in relation to the Mortgages Trustee or Funding, the corporate services
     agreement entered into on or before the Initial Closing Date between the
     relevant Corporate Services Provider and the Mortgages Trustee or Funding
     (as the case may be) for the provision by the relevant Corporate Services
     Provider of certain corporate services with respect to the Mortgages
     Trustee or Funding,

in each case as it has been and may be amended, restated, novated, varied or
supplemented from time

                                      11
<PAGE>

to time and shall include any additional and/or replacement corporate services
agreements entered into by such parties from time to time in accordance with
the Transaction Documents;

"Corporate Services Provider" means in relation to any Issuer, Law Debenture
Corporate Services Limited, in relation to Funding, Mourant & Co. Capital
(SPV) Limited, and in relation to the Mortgages Trustee, Mourant & Co.
Limited, or any other person or persons for the time being acting as corporate
services provider under the relevant Corporate Services Agreement;

"CPR" means, unless otherwise defined in the text of the relevant Transaction
Document, the constant rate of scheduled and unscheduled repayments on the
Mortgage Loans in the Mortgage Portfolio each month relative to the aggregate
principal amount outstanding of such Mortgage Loans;

"Currency Swap Agreement" means, for any Issuer, the ISDA Master Agreement(s),
Schedule(s), Confirmation(s) and any credit support documents thereto entered
into among such Issuer, the relevant Currency Swap Provider, the Note Trustee
and any credit support provider, as may be amended, restated, novated, varied
or supplemented from time to time and shall include any additional and/or
replacement currency swap agreement entered into by such Issuer from time to
time in connection with the Notes issued by such Issuer;

"Currency Swap Provider" means in relation to any Issuer the swap counterparty
to such Issuer under any relevant Currency Swap Agreement of such Issuer;

"Currency Swap Provider Default" means the occurrence of an Event of Default
or a Downgrade Termination Event (as defined in the relevant Currency Swap
Agreement) under a Currency Swap Agreement where the Currency Swap Provider is
the Defaulting Party or the Affected Party (each as defined in the relevant
Currency Swap Agreement);

"Current Balance" means in relation to any Mortgage Loan as at any given date,
the aggregate (but avoiding double counting) of:

(a)  the original principal amount advanced to the relevant Borrower and any
     Further Advances on or before the given date to the relevant Borrower
     secured or intended to be secured by the related Mortgage;

(b)  the amount of any Re-Draw under any Flexible Mortgage Loan or of any
     Further Draw under a Personal Secured Loan secured or intended to be
     secured by the related Mortgage;

(c)  any interest, disbursement, legal expense, fee, charge, rent, service
     charge, premium or payment which has been properly capitalised in
     accordance with the relevant Mortgage Conditions or with the relevant
     Borrower's consent and added to the amounts secured or intended to be
     secured by such Mortgage Loan (including interest capitalised on any
     Re-Draw under a Flexible Mortgage Loan); and

(d)  any other amount (other than unpaid interest) which is due or accrued
     (whether or not due) and which has not been paid by the relevant Borrower
     and has not been capitalised in accordance with the relevant Mortgage
     Conditions or with the relevant Borrower's consent but which is secured
     or intended to be secured by that Mortgage Loan, as at the end of the
     London Business Day immediately preceding that given date less any
     repayment or payment of any of the foregoing made on or before the end of
     the London Business Day immediately preceding that given date and
     excluding any retentions made but not released and any Further Advances
     and/or Further Draws committed to be made but not made by the end of the
     London

                                      12
<PAGE>

     Business Day immediately preceding that given 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 and Seller Share Percentage) of the
Mortgages Trust Deed;

"Current Funding 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 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 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 and Seller Share Percentage) of the
Mortgages Trust Deed;

"Deed of Accession" means a deed executed by, inter alios, Funding, the
Security Trustee and the Note Trustee and any New Funding Secured Creditor in
the form set out in Schedule 2 to the Funding Deed of Charge or any other form
of deed as agreed between the parties;

"Deed of Consent" means a deed whereby a person in or intended to be in
occupation of a Mortgaged Property agrees with the Seller to postpone his or
her interest (if any) in the Mortgaged Property so that it ranks after the
interest of the Seller created by the relevant Mortgage;

"Deed of Postponement" means a deed whereby a Mortgagee of a Mortgaged
Property agrees with the Seller to postpone its Mortgage over the Mortgaged
Property so that the sums secured by it will rank for repayment after the sums
secured by the relevant Mortgage;

"Deferred Contribution" means 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, Final Deferred Contribution (which Contribution 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 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 otherwise in accordance
with the Mortgage Sale Agreement;

"Direct Debit" means a payment made pursuant to the Direct Debiting Scheme;

"Direct Debiting Scheme" means the scheme for the manual or automated debiting
of bank accounts operated in accordance with the detailed rules of certain
members of the Association for Payment Clearing Services;

"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

                                      13
<PAGE>

Trust Determination Date;

"Distribution Period" means the period from, and including, a Distribution
Date to, but excluding, the next following Distribution Date or, in relation
to the first Distribution Period, the period from and including the relevant
Closing Date to, but excluding, the first Distribution Date;

"Drawdown Date" means, in respect of the First Issuer Intercompany Loan, the
Initial Closing Date, and in respect of any New Intercompany Loan, the date on
which such New Intercompany Loan is made to Funding by any New Issuer;

"Drawdown Notice" means, in respect of an Intercompany Loan, a notice
delivered by Funding to the relevant Issuer and the Security Trustee
requesting a drawing under that Intercompany Loan Agreement;

"DTC" means The Depository Trust Company;

"Early Repayment Charge" means any charge or fee which the Mortgage Conditions
applicable to a Mortgage Loan require the relevant Borrower to pay in the
event that all or part of that Mortgage Loan is repaid before a certain date,
including without limitation repayment of any "cashback";

"Early Repayment Charge Receipts" means an amount equal to sums received by
the Mortgages Trustee from time to time in respect of Early Repayment Charges;

"Encumbrance" has the same meaning as "Security Interest";

"Enforcement Procedures" means the procedures for the enforcement of Mortgages
undertaken by the Administrator from time to time in accordance with the
Administration Procedures;

"English Mortgage" means, in respect of any Mortgage Loan in the Mortgage
Portfolio, a Mortgage secured over an English Property;

"English Mortgage Loan" means each Mortgage Loan secured by an English
Mortgage;

"English Property" means a Mortgaged Property situated in England or Wales;

"Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear
System;

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

(a)  in relation to the First Issuer Notes, a First Issuer Note Event of
     Default;

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

(c)  in relation to the First Intercompany Loan Agreement, a First Issuer
     Intercompany Loan Event of Default; or

(d)  in relation to any New Intercompany Loan Agreement, the occurrence of an
     event of default pursuant to the Intercompany Loan Terms and Conditions
     of such New Issuer;

"Exchange Act" means the United States Securities Exchange Act of 1934, as
amended;

"Existing Borrower's Re-Fix Rate" means at any date the fixed rate then being
offered to those of the Seller's existing Borrowers who at that date are
seeking to fix the rate of interest payable under their existing Fixed Rate
Mortgage Loan with the Seller for the applicable period;

"Final Deferred Contribution" has the meaning given to it in the Mortgages
Trust Deed;

                                      14
<PAGE>

"Final Repayment Date" means, in respect of the First Issuer Intercompany
Loan, the Payment Date falling in January, 2041 and in relation to any New
Intercompany Loan the date specified under the relevant Issuer Transaction
Documents and as defined in the relevant Issuer Master Definitions Schedule;

"Financial Period" means a Financial Year or any other period in respect of
which accounts are required to be prepared and certified by the auditors of
the relevant company to enable it to comply with all relevant legal and
accounting requirements and all requirements of any stock exchange on which
any securities of the company are listed;

"First Issuer" means Granite Mortgages 01-1 plc;

"First Issuer Liquidity Required Amount" means an amount as of any Payment
Date equal to the excess, if any, of 3% of the aggregate outstanding balance
of the Notes on that Payment Date over amounts standing to the credit of the
Issuer Reserve Fund on that Payment Date;

"Fitch" means Fitch Ratings Limited and includes any successor to its ratings
business;

"Fixed Rate Mortgage Loan" means a Mortgage Loan which is subject to a fixed
rate of interest set by reference to a predetermined rate or series of rates
for a fixed period or periods;

"Fixed Rate Period" means, in relation to any Fixed Rate Mortgage Loan or
other Mortgage Loan offered with a Fixed Rate, the period agreed between the
Borrower and the Seller or Administrator (as applicable) as set out under the
terms and conditions of such Mortgage Loan during which the interest rate
applicable to such Mortgage Loan will remain fixed;

"Flexible Cash Re-Draw Capacity" has the meaning given to it in Clause 9.2
(Fluctuation of Minimum Seller Share on Distribution Date) of the Mortgages
Trust Deed;

"Flexible Mortgage Loan" means a type of Mortgage Loan (other than a Personal
Secured Loan) product that typically incorporates features that give the
Borrower options (which may be subject to certain conditions) to, among other
things, make further drawings on the mortgage loan account and/or to overpay
or underpay interest and principal in a given month and/or to take a Payment
Holiday;

"Flexible Overpayments Sub Ledger" means the sub-ledger of the Overpayments
Ledger which will be established by the Cash Manager on the Initial Closing
Date in order to record any Overpayments made on Flexible Mortgage Loans;

"Funding" means Granite Finance Funding Limited, a company incorporated with
limited liability in Jersey, registered number 79308;

"Funding Available Principal Receipts" in respect of any Payment Date will be
calculated by the Cash Manager or otherwise on behalf of Funding (or,
following enforcement of the Funding Security, the Security Trustee) on the
Distribution Date immediately preceding such Payment Date and will be an
amount equal to the sum of all Funding Principal Receipts received by Funding
from the Mortgages Trustee and recorded on the Group 1 Principal Sub-Ledger or
Group 2 Principal Sub-Ledger, as applicable, during the Interest Period ending
on the relevant Payment Date plus amounts transferred from the Funding
Principal Ledger to the Group 1 Principal Sub-ledger or the Group 2 Principal
Sub-Ledger during the Interest Period ending on the relevant Payment Date;
provided that, subject as otherwise provided in the Transaction Documents, for
the purpose only of determining the amount of Funding Available Principal
Receipts which may be allocated to any Issuer (but not to any

                                      15
<PAGE>

other Issuer) following an enforcement of the Issuer Security relating to that
Issuer, it may also include the aggregate of any amounts standing to the
credit of the Issuer Liquidity Reserve Ledger, if any, and the Issuer Reserve
Fund Ledger of such Issuer remaining on that Payment Date after the
application of such reserve funds in accordance with the Funding
Pre-Enforcement Revenue Priority of Payments. Provided, further, that in
respect of an Issuer the Notes of which include a Class or Classes of Money
Market Notes having a Final Maturity Date on such Payment Date, Funding
Available Principal Receipts will include the amount, if any, standing to the
credit of the Issuer Liquidity Reserve Ledger in respect of that Issuer on the
Distribution Date immediately preceding such Payment Date required (after
taking into account Funding Available Principal Receipts otherwise available
to such Issuer) to pay such Class of Money Market Notes on such Payment Date;

"Funding 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:

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

(2)  other net income of Funding including all amounts of interest received on
     the Funding GIC Account and the Funding Transaction Account, and/or all
     income from Authorised Investments (in each case to be received on or
     prior to the relevant Payment Date) as allocated by Funding between Group
     1 and Group 2 in proportion to the Group 1 Share Percentage and the Group
     2 Share Percentage and recorded on the Group 1 Revenue Sub-Ledger and
     Group 2 Revenue Sub-Ledger on each Distribution Date during the Interest
     Period ending on the relevant Payment Date; and

(3)  the amount standing to the credit of the Funding Reserve Ledger,

PROVIDED THAT for the purpose only of the payments to be made to any Issuer on
the relevant Payment Date in respect of the Intercompany Loan made by that
Issuer (but not for the purpose of any other payment to be made by Funding on
the relevant Payment Date including any payment in respect of any other
Intercompany Loan made by any other Issuer), it shall also include the sum of:

(4)  the amount standing to the credit of the Issuer Reserve Fund Ledger in
     respect of such Issuer (but not in respect of any other Issuer), subject
     to any limits or conditions on the purposes for which that reserve may be
     utilised as set out in the Funding Deed of Charge; and

(5)  the amount standing to the credit of the Issuer Liquidity Reserve Ledger,
     if any, in respect of such Issuer (but not in respect of any other
     Issuer), subject to any limits or conditions on the purposes for which
     that reserve may be utilised as set out in the Funding Deed of Charge.

"Funding Bank Accounts" means the Funding GIC Account, the Funding Transaction
Account and the Funding (First Issuer) GIC Account and each other Funding
(Issuer) GIC Account established after the Initial Closing Date and each such
additional or replacement account in the name of Funding that may be opened
with the prior approval of the Security Trustee after the Initial Closing
Date;

"Funding Charged Property" means the property, assets and undertakings of
Funding which from time to time are or are expressed to be mortgaged, charged,
assigned, pledged or otherwise encumbered to, or in favour of the Security
Trustee for itself and for the Funding Secured Creditors under the Funding
Deed of Charge or any other Funding Transaction Document;

"Funding Contribution Date" means any date on which Funding makes a Further
Contribution to the

                                      16
<PAGE>

Mortgages Trustee in connection with Funding's purchase of an increased
beneficial interest in the Trust Property, on which date the Mortgages Trustee
will also pay to the Seller an Initial Consideration equal to the amount of
such Further Contribution;

"Funding Deed of Charge" means the deed of charge entered into on or about the
Initial Closing Date between Funding, the Security Trustee, the First Issuer,
the Corporate Services Provider, the Account Bank, the Funding GIC Provider,
the Mortgages Trustee, the Start-up Loan Provider and the Cash Manager 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 Expense Sub-Ledger" means a sub-ledger of the Funding Revenue Ledger
on which receipts and payments of Funding Revenue Receipts allocable to the
payment of expenses will be recorded by the Cash Manager;

"Funding (First Issuer) Bank Account Agreement" means the agreement entered
into on or about the Initial Closing Date between Funding, the Cash Manager,
the Security Trustee and the Account Bank which governs the operation of the
Funding (First Issuer) GIC Account as may be amended, restated, novated,
varied or supplemented from time to time and shall include any additional
and/or replacement Funding (first issuer) bank account agreement entered into
by such parties from time to time in accordance with the Transaction
Documents;

"Funding (First Issuer) GIC Account" the account in the name of Funding (sort
code 30-15-57, account number 00001933, reference: GRANITE011GI) held at the
Account Bank and maintained subject to the terms of the Funding (First Issuer)
Guaranteed Investment Contract, the Funding (First Issuer) Bank Account
Agreement and the Funding Deed of Charge or such additional or replacement
account as may for the time being be in place with the prior consent of the
Security Trustee;

"Funding (First Issuer) GIC Account Mandate" means the resolutions,
instructions and signature authorities relating to the Funding (First Issuer)
GIC Account substantially in the form set out in Schedule 1 to the Funding
(First Issuer) Bank Account Agreement;

"Funding (First Issuer) Guaranteed Investment Contract" means the guaranteed
investment contract entered into on or about the Initial Closing Date between
Funding, the Funding GIC Provider, the Security Trustee and the Cash Manager
under which the Funding GIC Provider agrees to pay Funding a guaranteed rate
of interest on the balance from time to time of the Funding (First Issuer) GIC
Account, as may be amended, restated, novated, varied or supplemented from
time to time and shall include any additional and/or replacement guaranteed
investment contract entered into by Funding from time to time in accordance
with the Transaction Documents;

"Funding (Issuer) Bank Account Agreement" means, in relation to any Issuer,
the agreement entered into on or about the relevant Closing Date between
Funding, the Cash Manager, the Security Trustee and the Account Bank which
governs the operation of the relevant Funding (Issuer) GIC Account and shall
include any additional and/or replacement Funding (Issuer) bank account
agreement entered into by such parties from time to time in accordance with
the Transaction Documents;

"Funding (Issuer) GIC Account" means, in relation to any Issuer, the account
in the name of Funding held at the Account Bank and maintained subject to the
terms of the relevant Funding (Issuer) Guaranteed Investment Contract, the
relevant Funding (Issuer) Bank Account Agreement and

                                      17
<PAGE>

the Funding Deed of Charge or such additional or replacement account as may
for the time being be in place with the prior consent of the Security Trustee;

"Funding (Issuer) Guaranteed Investment Contract" means, in relation to any
Issuer, the guaranteed investment contract entered into on about the relevant
Closing Date between Funding, the Funding GIC Provider, the Security Trustee
and the Cash Manager under which the Funding GIC Provider agrees to pay
Funding a guaranteed rate of interest on the balance from time to time of the
relevant Funding (Issuer) GIC Account, as may be amended, restated, novated,
varied or supplemented from time to time and shall include any additional
and/or replacement guaranteed investment contract entered into by Funding from
time to time in accordance with the Transaction Documents;

"Funding GIC Account" means the account in the name of Funding (sort code
30-15-57, account number 0001933) held at Lloyds TSB plc, Treasury Division,
25 Monument Street, London EC3R 8BQ and maintained subject to the Funding
Guaranteed Investment Contract and the Bank Account Agreement and such
additional or replacement accounts as may for the time being be in place with
the prior consent of the Security Trustee including, on and after 26 May 2004,
the account in the name of Funding (sort code 30-00-59, account number
00000000, reference 132161) held at Northern Rock;

"Funding GIC Account Mandate" means the resolutions, instructions and
signature authorities relating to the Funding GIC Account substantially in the
form set out in Schedule 1 to the Bank Account Agreement;

"Funding GIC Provider" means:

(a)  in relation to the Funding GIC Account:

     (i)  up to 26 May 2004, Lloyds TSB Bank plc acting through its office at
          Financial Markets Division, 25 Monument Street, London; and

     (ii) from (and including) 26 May 2004, Northern Rock,

     (provided that during the period 26 May 2004 to the Payment Date falling
     in June 2004 (inclusive) the term "Funding GIC Provider" shall mean in
     respect of such account both Lloyds TSB Bank plc acting through the
     aforementioned office and Northern Rock, unless the context admits
     otherwise);

(b)  in relation to any Funding (Issuer) GIC Account established prior to 26
     May 2004, Lloyds TSB Bank plc acting through its aforementioned office;
     and

(c)  in relation to any Funding (Issuer) GIC Account established on or after
     26 May 2004 (including, for the avoidance of doubt, the Funding (Issuer)
     GIC Account relating to Granite Mortgages 04-2 plc), Northern Rock,

or such other person or persons as are for the time being the GIC Provider to
Funding under the Funding Guaranteed Investment Contract and any Funding
(Issuer) Guaranteed Investment Contract;

"Funding Guaranteed Investment Contract" means the guaranteed investment
contract entered into on or about the Initial Closing Date between Funding,
the Funding GIC Provider, the Cash Manager and the Security Trustee under
which the Funding GIC Provider agrees to pay Funding a guaranteed rate of
interest on the balance from time to time of the Funding GIC Account as may be
amended, restated, novated, varied or supplemented from time to time and shall
include any additional and/or replacement guaranteed investment contract
entered into by Funding in accordance with the

                                      18
<PAGE>

Transaction Documents;

"Funding Jersey Secured Property" means, at any time, the Funding Charged
Property which is situated in Jersey at such time;

"Funding Ledgers" means the Funding Principal Ledger, the Funding Revenue
Ledger, the Funding Reserve Ledger, the Funding Principal Deficiency Ledger,
the Intercompany Loan Ledger and each Issuer Reserve Fund Ledger and each
Issuer Liquidity Reserve Ledger;

"Funding Post-Enforcement Priority of Payments" means the rules and the order
of priority in which Funding Available Revenue Receipts, Funding Available
Principal Receipts and all other monies, income, receipts and recoveries of
Funding or the Security Trustee or any Receiver of Funding and the proceeds of
enforcement of the Funding Security are to be applied following service of an
Intercompany Loan Enforcement Notice or otherwise following an enforcement of
the Funding Security as set out in Part III of Schedule 3 (Funding Priority of
Payments) to the Funding Deed of Charge, as the same may be amended, varied or
superseded from time to time in accordance with the terms of the Funding Deed
of Charge;

"Funding Pre-Enforcement Principal Priority of Payments" means the rules and
the order of priority in which Funding Available Principal Receipts will be
applied prior to the enforcement of the Funding Security as set out in Part II
of Schedule 3 (Funding Priority of Payments) to the Funding Deed of Charge, as
the same may be amended, varied or superseded from time to time in accordance
with the terms of the Funding Deed of Charge;

"Funding Pre-Enforcement Revenue Priority of Payments" means the rules and the
order of priority in which Funding Available Revenue Receipts will be applied
prior to the enforcement of the Funding Security as set out in Part I of
Schedule 3 (Funding Priority of Payments) to the Funding Deed of Charge, as
the same may be amended, varied or superseded from time to time in accordance
with the terms of the Funding Deed of Charge;

"Funding Principal Deficiency Ledger" means the ledger maintained by the Cash
Manager in the name of Funding pursuant to the Cash Management Agreement to
record the aggregate position of the Principal Deficiency Ledgers of all
Issuers as to Losses on the Mortgage Loans and the application of Funding
Available Principal Receipts to fund the Issuer Liquidity Reserve Funds;

"Funding Principal Ledger" means the ledger maintained by the Cash Manager in
the name of Funding pursuant to the Cash Management Agreement to record
receipts and payments of Funding Principal Receipts which ledger will be
divided into two sub-ledgers: (i) the Group 1 Principal Sub-Ledger and (ii)
the Group 2 Principal Sub-Ledger;

"Funding Principal Receipts" means the Principal Receipts received by Funding
from the Mortgages Trustee on each Distribution Date;

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

"Funding Reserve Additional Amount" means following the occurrence of a
Funding Step-Up Trigger Event, an amount equal to the sum of the Funding
Reserve Required Amount and (GBP)19,200,000;

"Funding Reserve Adjustment Date" means a Payment Date in respect of which (i)
a Funding

                                      19
<PAGE>

Reserve Decrease has occurred on the immediately preceding Payment Date and
(ii) such immediately preceding Payment Date was not also a Funding Reserve
Adjustment Date; provided that a Funding Reserve Adjustment Date shall not
occur on any Payment Date for Group 1 Issuers or Payment Date for Group 2
Issuers if only Notes of Group 1 Issuers or Group 2 Issuers, respectively, are
outstanding;

"Funding Reserve Decrease" means a reduction in the amount standing to the
credit of the Funding Reserve Ledger resulting from the application of such
amount to the payment of items in accordance with the Funding Pre-Enforcement
Revenue Priority of Payments (except items (A)-(D)) or the Funding
Post-Enforcement Priority of Payments (except items (A)-(C));

"Funding Reserve Fund" means the reserve fund established in the name of
Funding on the Initial Closing Date in an amount up to the Funding Reserve
Required Amount, which prior to enforcement may be (a) allocated among Issuers
and between Groups to help meet any deficit in Funding Available Revenue
Receipts and thereby any deficit recorded on the Issuer Principal Deficiency
Ledgers and/or (b) utilised to fund initial reserves and other expenses in
connection with the issuance of Notes by New Issuers;

"Funding Reserve Ledger" means the ledger maintained by the Cash Manager in
the name of Funding pursuant to the Cash Management Agreement to record the
amount standing to the credit of the Funding Reserve Fund from time to time;

"Funding Reserve Required Amount" means the amount from time to time which is
equal to the sum of (1) the product of 1 per cent. and the greater of (a) the
aggregate Principal Amount Outstanding of the Notes outstanding of all Issuers
on the relevant determination date and (b) the aggregate Outstanding Principal
Balance of the Intercompany Loans of all Issuers on the relevant determination
date, or such other amount as may be agreed from time to time with the Rating
Agencies. As at the Initial Closing Date, the Funding Reserve Required Amount
will be zero;

"Funding Revenue Ledger" means the ledger maintained by the Cash Manager in
the name of Funding pursuant to the Cash Management Agreement to record all
monies received by Funding during an Interest Period other than the Funding
Principal Receipts which ledger will be sub-divided into three sub-ledgers:
(i) the Group 1 Revenue Sub-Ledger, (ii) the Group 2 Revenue Sub-Ledger and
(iii) the Funding Expense Sub-Ledger;

"Funding Revenue Receipts" means the Mortgages Trustee Available Revenue
Receipts received by Funding from the Mortgages Trustee on each Distribution
Date;

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

"Funding Secured Obligations" means any and all of the monies, obligations and
liabilities which Funding covenants to pay or discharge under or pursuant to
Clause 2 (Covenant to pay and to Perform) of the Funding Deed of Charge and
all other amounts owed by it to the Funding Secured Creditors pursuant to the
Funding Transaction Documents;

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

                                      20
<PAGE>

them including the security granted by Funding under or pursuant to any Deed
of Accession and the security granted by Funding under or pursuant to the
Second Priority Funding Deed of Charge;

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

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

"Funding Share/Seller Share Ledger" means the ledger to be maintained by the
Cash Manager, on behalf of the Mortgages Trustee and the Beneficiaries, to
record the Current Funding Share, the Current Funding Share Percentage, the
Current Seller Share and the Current Seller Share Percentage of the Trust
Property;

"Funding Step-Up Trigger Event" means an event which occurs if any Issuer
fails to exercise its option to redeem its Notes on the relevant Step-Up Date
pursuant to the terms and conditions of its Notes;

"Funding Transaction Account" means the account in the name of Funding
(account no. 0625898, sort code 30-00-02) held with the Account Bank and
maintained subject to the terms of the Bank Account Agreement and the Funding
Deed of Charge or any additional or replacement account as may for the time
being be in place with the prior consent of the Security Trustee;

"Funding Transaction Account Mandate" means the resolutions, instructions and
signature authorities relating to the Funding Transaction Account
substantially in the form set out in Schedule 1 to the Bank Account Agreement;

"Funding Transaction Document" means each of the following documents:

(a)  the Mortgages Trust Deed;

(b)  the Mortgage Sale Agreement;

(c)  the Administration Agreement;

(d)  the Funding Deed of Charge;

(e)  the Second Priority Funding Deed of Charge;

(f)  the Corporate Services Agreement;

(g)  the Bank Account Agreement;

(h)  the Stand-by Bank Account Agreement;

(i)  the Funding (Issuer) Bank Account Agreement;

(j)  the Funding Guaranteed Investment Contract;

(k)  the Stand-by Funding Guaranteed Investment Contract

(l)  the Funding (Issuer) Guaranteed Investment Contract;

(m)  the Cash Management Agreement;

(n)  the Start-up Loan Agreement;

(o)  each New Start-up Loan Agreement to be entered into by Funding after the
     Initial Closing

                                      21
<PAGE>

     Date;

(p)  the Collection Bank Agreement;

(q)  the First Issuer Intercompany Loan Agreement;

(r)  each New Intercompany Loan Agreement to be entered into by Funding after
     the date hereof; and

(s)  each other deed, document, agreement, instrument or certificate entered
     into or to be entered into by Funding pursuant to or in connection with
     any of the documents set out in paragraphs (a) through (r) above
     including any agreement entered into by Funding as a replacement of any
     of the above agreements upon the termination thereof;

"Further Advance" means, in relation to a Mortgage Loan, any advance of
further money to the relevant Borrower following the making of the initial
advance of monies in respect of such Mortgage Loan (the "Initial Advance")
which is secured by the same Mortgage as the Initial Advance but does not
include the amount of any retention advanced to the relevant Borrower as part
of the Initial Advance after completion of the Mortgage and does not include
any Re-Draw or Further Draw;

"Further Contribution" means the consideration in the form of cash payable to
the Mortgages Trustee by any Beneficiary to increase the Funding 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 to the Mortgages
Trustee;

"Further Draw" means additional amounts drawn by a Borrower under a Personal
Secured Loan in aggregate up to the fixed amount of credit extended under the
terms of the related Mortgage Conditions at the inception of the Borrower's
Personal Secured Loan;

"Further Draw Capacity" means 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;

"GIC Provider" means in relation to any person the provider of guaranteed
investment services to such person pursuant to a guaranteed investment
contract;

"Group" means either of Group 1 or Group 2;

"Group 1" means all Group 1 Issuers;

"Group 2" means all Group 2 Issuers;

"Group 1 Available Principal Receipts" means, in respect of a Payment Date for
Group 1 Issuers, an amount (calculated on the immediately preceding
Distribution Date) equal to all Mortgages Trustee Principal Receipts received
by Funding from the Mortgages Trustee plus any amounts transferred from the
Funding Principal Ledger to the Group 1 Principal Sub-Ledger during the
Interest Period ending on the relevant Payment Date;

"Group 2 Available Principal Receipts" means, in respect of a Payment Date for
Group 2 Issuers, an amount (calculated on the immediately preceding
Distribution Date) equal to all Mortgages Trustee Principal Receipts received
by Funding from the Mortgages Trustee plus any amounts transferred from the
Funding Principal Ledger to the Group 2 Principal Sub-Ledger during the
Interest Period

                                      22
<PAGE>

ending on the relevant Payment Date;

"Group 1 Available Revenue Receipts" means, in respect of a Payment Date for
Group 1 Issuers, an amount (calculated on the immediately preceding
Distribution Date) equal to the sum of (a) the amount of Mortgages Trustee
Available Revenue Receipts distributed to Funding during the Interest Period
ending on the relevant Payment Date and recorded on the Group 1 Revenue
Sub-Ledger (b) other net income of Funding (including all amounts of interest
on the Funding GIC Account and the Funding Transaction Account, and/or all
income from Authorised Investments, in each case received on or prior to the
relevant Payment Date), as allocated by Funding to Group 1 in proportion to
the Group 1 Share Percentage and recorded on the Group 1 Revenue Sub-Ledger on
each Distribution Date during the related Interest Period ending on the
relevant Payment Date, and (c) the product of the amount standing to the
credit of the Funding Reserve Ledger on such Distribution Date multiplied by
the Group 1 Share Percentage, in each case as on such Distribution Date
(unless the related Payment Date for Group 1 Issuers is also a Funding Reserve
Adjustment Date, in which case the product of the amount standing to the
credit of the Funding Reserve Ledger multiplied by the Group 1 Share
Percentage, in each case as on the Distribution Date immediately preceding the
immediately preceding Payment Date for Group 2 Issuers);

"Group 2 Available Revenue Receipts" means, in respect of a Payment Date for
Group 2 Issuers, an amount (calculated on the immediately preceding
Distribution Date) equal to the sum of (a) the amount of Mortgages Trustee
Available Revenue Receipts distributed to Funding Interest Period ending on
the relevant Payment Date and recorded on the Group 2 Revenue Sub-Ledger (b)
other net income of Funding (including all amounts of interest on the Funding
GIC Account and the Funding Transaction Account, and/or all income from
Authorised Investments, in each case received on or prior to the relevant
Payment Date), as allocated by Funding to Group 2 in proportion to the Group 2
Share Percentage and recorded on the Group 2 Revenue Sub-Ledger on each
Distribution Date during the related Interest Period ending on the relevant
Payment Date, and (c) the product of the amount standing to the credit of the
Funding Reserve Ledger on such Distribution Date multiplied by the Group 2
Share Percentage, in each case as on such Distribution Date (unless the
related Payment Date for Group 2 Issuers is also a Funding Reserve Adjustment
Date, in which case the product of the amount standing to the credit of the
Funding Reserve Ledger multiplied by the Group 2 Share Percentage, in each
case as on the Distribution Date immediately preceding the immediately
preceding Payment Date for Group 1 Issuers);

"Group 1 Issuer" means any Issuer which applies Issuer Available Revenue
Receipts and Issuer Available Principal Receipts in accordance with the
relevant priority of payments on the Payment Date falling in July, October,
January and April of each year;

"Group 2 Issuer" means any Issuer which applies Issuer Available Revenue
Receipts and Issuer Available Principal Receipts in accordance with the
relevant priority of payments on the Payment Date falling in March, June,
September and December of each year;

"Group 1 Principal Sub-Ledger" means a sub-ledger of the Funding Principal
Ledger on which receipts and payments of Funding Principal Receipts allocable
to Group 1 are recorded by the Cash Manager;

"Group 2 Principal Sub-Ledger" means a sub-ledger of the Funding Principal
Ledger on which receipts and payments of Funding Principal Receipts allocable
to Group 2 are recorded by the Cash Manager;

                                      23
<PAGE>

"Group 1 Revenue-Sub Ledger" means a sub-ledger of the Funding Revenue Ledger
on which receipts and payments of Funding Revenue Receipts allocable to Group
1 are recorded by the Cash Manager;

"Group 2 Revenue-Sub Ledger" means the sub-ledger of the Funding Revenue
Ledger on which receipts and payments of Funding Revenue Receipts allocable to
Group 2 are recorded by the Cash Manager;

"Group 1 Share Percentage" means

   Aggregate Outstanding Principal Balance of all Group 1 Intercompany Loans
   -------------------------------------------------------------------------
       Aggregate Outstanding Principal Balance of all Intercompany Loans

PROVIDED THAT on any Distribution Date with respect to which Funding has made a
Further Contribution to the Mortgages Trustee in connection with Funding's
purchase of an increased beneficial interest in the Trust Property during the
immediately preceding Trust Calculation Period, the Outstanding Principal
Balance of any Intercompany Loan entered into during such Trust Calculation
Period shall be deemed to be (only for the purposes of the numerator and
denominator of the formula above) the Outstanding Principal Balance of such
Intercompany Loan multiplied by the number of days during which such
Intercompany Loan was outstanding during such Trust Calculation Period divided
by the number of days in such Trust Calculation Period.

"Group 2 Share Percentage" means

   Aggregate Outstanding Principal Balance of all Group 2 Intercompany Loans
   -------------------------------------------------------------------------
       Aggregate Outstanding Principal Balance of all Intercompany Loans

PROVIDED THAT on any Distribution Date with respect to which Funding has made a
Further Contribution to the Mortgages Trustee in connection with Funding's
purchase of an increased beneficial interest in the Trust Property during the
immediately preceding Trust Calculation Period, the Outstanding Principal
Balance of any Intercompany Loan entered into during such Trust Calculation
Period shall be deemed to be (only for the purposes of the numerator and
denominator of the formula above) the Outstanding Principal Balance of such
Intercompany Loan multiplied by the number of days during which such
Intercompany Loan was outstanding during such Trust Calculation Period divided
by the number of days in such Trust Calculation Period.

"Group 1 Shared Issuer Revenue Receipts" has the meaning given in the rules
for application of Funding Available Revenue Receipts under the Funding
Pre-Enforcement Priority of Payments set out in Part II of Schedule 3 to the
Funding Deed of Charge;

"Group 2 Shared Issuer Revenue Receipts" has the meaning given in the rules
for application of Funding Available Revenue Receipts under the Funding
Pre-Enforcement Priority of Payments set out in Part II of Schedule 3 to the
Funding Deed of Charge;

"Group 1 Shared Principal Receipts" has the meaning given in the rules for
application of Funding Available Principal Receipts under the Funding
Pre-Enforcement Priority of Payments set out in Part II of Schedule 3 to the
Funding Deed of Charge;

"Group 2 Shared Principal Receipts" has the meaning given in the rules for
application of Funding Available Principal Receipts under the Funding
Pre-Enforcement Priority of Payments set out in Part II of Schedule 3 to the
Funding Deed of Charge;

"Guarantee" means each guarantee in support of the obligations of a Borrower
under a Mortgage

                                      24
<PAGE>

Loan;

"Heritable Creditor" means, in relation to Scottish Mortgage Loans, the holder
of a standard security over heritable or long leasehold property in Scotland;

"Holdings" means Granite Finance Holdings Limited, a private limited company
incorporated under the laws of England and Wales, registered number 4127787;

"ICTA" means the Income and Corporation Tax Act 1988;

"in Arrears" or "in arrears" means, in respect of a Mortgage Account, that
amount equal in the aggregate to one or more Monthly Payments in respect of
such Mortgage Account are overdue and unpaid by a Borrower;

"Independent Certificates" means certificates of independent parties in
accordance with Trust Indenture Act Sections 314(c) and 314(d)(1);

"Initial Closing Date" means 26 March 2001;

"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 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 the
First Issuer Intercompany Loan or any New Intercompany Loan;

"Initial Funding Share" means the share of Funding in the Trust Property on
the Initial Closing Date, being an amount equal to approximately
(GBP)1,500,000,000;

"Initial Funding Share Percentage" means the percentage share of Funding in
the Trust Property on the Initial Closing Date being approximately 86.61 per
cent.;

"Initial Mortgage Loans" means the portfolio of residential first Mortgage
Loans and their Related Security to be sold and assigned by the Seller to the
Mortgages Trustee on the Initial Closing Date pursuant to the Mortgage Sale
Agreement;

"Initial Mortgage Portfolio" means the Initial Mortgage Loans and their
Related Security, particulars of which are set out in Appendix A to the
Mortgage Sale Agreement but excluding any such Mortgage Loan and its Related
Security which has been redeemed in full on or before the Initial Closing
Date, and (subject where applicable to the subsisting rights of redemption of
the Borrowers) all right, title, interest and benefit of the Seller in and to:

(a)  all sums of principal, interest (including, for the avoidance of doubt,
     all Accrued Interest, Arrears of Interest and Capitalised Arrears) and
     any other sum due or to become due under or in respect of such Mortgage
     Loans and their Related Security on or after the Initial Closing Date and
     including, without limitation, the right to demand, sue for, recover and
     give receipts for all such principal, interest or other amounts, the
     right to sue on all covenants and undertakings made or expressed to be
     made in favour of the Seller under the applicable Mortgage and all sums
     due or to become due in respect of any Early Repayment Charge;

(b)  the benefit of all securities for such principal, interest and other sums
     payable (including without limitation any interest of the Seller in any
     Life Policy), the benefit of all Deeds of Consent, MHA Documentation and
     Deeds of Postponement, any Guarantee in respect of such

                                      25
<PAGE>

     Mortgage Loan or any other collateral security for the repayment of the
     relevant Mortgage Loans secured by the Mortgages;

(c)  the right to exercise all the powers of the Seller in relation thereto
     subject to and in accordance with the relevant Mortgage Conditions;

(d)  all the estate and interest in the Mortgaged Properties in relation
     thereto vested in the Seller;

(e)  to the extent they are assignable, each Certificate of Title and
     Valuation Report and any right of action of the Seller against any
     solicitor, valuer or other person in connection with any report,
     valuation, opinion, certificate or other statement of fact or opinion
     given in connection with any Mortgage Loan and its Related Security, or
     any part thereof affecting the decision of the Seller to make or offer to
     make the relevant Mortgage Loan or part thereof;

(f)  the Buildings Policies and Insurance Contracts, in each case so far as
     they relate to such Mortgage Loans comprised in that portfolio of
     Mortgage Loans and their Related Security, including the right to receive
     the proceeds of all claims made or to be made by or on behalf of the
     Seller or to which the Seller is or may become entitled;

(g)  the MIG Policies, so far as they relate to such Mortgage Loans comprised
     in that portfolio of Mortgage Loans and their Related Security, including
     the right to receive of all claims made or to be made by or on behalf of
     the Seller or to which the Seller is or may become entitled;

"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 Closing Date or Assignment Date, as
applicable) in accordance with the provisions of the Mortgage Sale Agreement;

"Initial Seller Share" means the share of the Seller in the Trust Property on
the Initial Closing Date being an amount equal to approximately
(GBP)232,000,000;

"Initial Seller Share Percentage" means the percentage share of the Seller in
the Trust Property on the Initial Closing Date being approximately 13.39 per
cent.;

"Initial Trust Property" means the sum of (GBP)100 (one hundred pounds) held
on trust absolutely as to both capital and income by the Mortgages Trustee for
the benefit of the Seller and Funding pursuant to Clause 2.1 (Initial Trust
Property) of the Mortgages Trust Deed;

"Inland Revenue" means the Inland Revenue of the United Kingdom;

"Insolvency Act" means the Insolvency Act 1986;

"Insolvency Event" in respect of the Seller, the Administrator, the Cash
Manager or any Issuer Cash Manager (each, for the purposes of this definition,
a "Relevant Entity") means:

(a)  an order is made or an effective resolution passed for the winding up of
     the Relevant Entity (except, in any such case, a winding-up or
     dissolution for the purpose of a reconstruction or amalgamation the terms
     of which have been previously approved by the Security Trustee);

(b)  the Relevant Entity ceases or threatens to cease to carry on its business
     or stops payment or

                                      26
<PAGE>

threatens to stop payment of its debts or is deemed unable to pay its debts
within the meaning of section 123(a), (b), (c) or (d) of the Insolvency Act
(as amended, modified or re-enacted) or becomes unable to pay its debts as
they fall due or the value of its assets falls to less than the amounts of its
liabilities (taking into account, for both these purposes, contingent and
prospective liabilities) or otherwise becomes insolvent;

(c)  proceedings are initiated against the Relevant Entity under any
     applicable liquidation, administration, reorganisation (other than a
     reorganisation where the Relevant Entity is solvent) or other similar
     laws, save where such proceedings are being contested in good faith; or
     an administrative or other receiver, administrator or other similar
     official is appointed in relation to the whole or any substantial part of
     the undertaking or assets of the Relevant Entity; or a distress,
     execution, diligence or other process is enforced upon the whole or any
     substantial part of the undertaking or assets of the Relevant Entity and
     in any of the foregoing cases it is not discharged within 30 London
     Business Days; or if the Relevant Entity initiates or consents to
     judicial proceedings relating to itself under any applicable liquidation,
     administration, insolvency, reorganisation or other similar laws or makes
     a conveyance or assignment for the benefit of its creditors generally;

and in respect of Funding or any Issuer (each, for the purposes of this
definition, a "Relevant Entity"), "Insolvency Event" means:

(a)  except for the purposes of an amalgamation or restructuring as described
     in sub-clause (b) of this definition, the Relevant Entity ceases or
     threatens to cease to carry on all or a substantial part of its business
     or the Relevant Entity is deemed unable to pay its debts within the
     meaning of section 123(1)(a), (b), (c) or (d) of the Insolvency Act 1986
     (as that section may be amended) or becomes unable to pay its debts
     within the meaning of section 123(2) of the Insolvency Act 1986 (as that
     section may be amended, modified or re-enacted); or

(b)  an order is made or an effective resolution is passed for the winding up
     of the Relevant Entity (except for the purposes of or pursuant to an
     amalgamation, restructuring or merger previously approved by the Note
     Trustee or the Security Trustee, as the case may be, or as approved in
     writing by an Extraordinary Resolution (as defined in the Issuer Trust
     Deed) of the Class A Noteholders); or

(c)  proceedings are otherwise initiated against the Relevant Entity under any
     applicable liquidation, insolvency, composition, reorganisation or other
     similar laws (including, but not limited to, presentation of a petition
     for an administration order) and (except in the case of presentation of a
     petition for an administration order) such proceedings are not, in the
     opinion of the Note Trustee or the Security Trustee (as the case may be),
     being disputed in good faith with a reasonable prospect of success; or an
     administration order being granted or an administrative receiver or other
     receiver, liquidator or other similar official being appointed in
     relation to the Relevant Entity or in relation to the whole or any
     substantial part of the undertaking or assets of the Relevant Entity; or
     an encumbrancer taking possession of the whole or any substantial part of
     the undertaking or assets of the Relevant Entity, or a distress,
     execution, diligence or other process being levied or enforced upon or
     sued out against the whole or any substantial part of the undertaking or
     assets of the Relevant Entity and such possession or process (as the case
     may be) not being discharged or not otherwise ceasing to apply within 30
     days; or the Relevant Entity initiating or consenting to judicial
     proceedings relating to itself under applicable liquidation, insolvency,
     composition, reorganisation or other

                                      27
<PAGE>

     similar laws or making a conveyance or assignment for the benefit of its
     creditors generally;

"Insurance Contracts" means the insurance contracts or policies described in
Schedule 4 to the Mortgage Sale Agreement and any other additional, substitute
or replacement insurance contract or policy arranged by the Seller from time
to time relating to the Mortgage Loans in the Mortgages Trust;

"Insurance Policies" means:

(a)  the MIG Policies;

(b)  the Properties in Possession Policy;

(c)  the Contingency Insurance Policy; and

(d)  the Buildings Policies;

"Intercompany Loan Agreements" means the First Issuer Intercompany Loan
Agreement and any New Intercompany Loan Agreements and "Intercompany Loan
Agreement" means any one of them;

"Intercompany Loans" means the First Issuer Intercompany Loan and any New
Intercompany Loan and "Intercompany Loan" means any of them;

"Intercompany Loan Confirmation" means a document substantially in the form
set out in Schedule 2 (Form of Intercompany Loan Confirmation) to the
Intercompany Loan Terms and Conditions confirming the principal terms of each
Intercompany Loan Agreement between Funding, any Issuer, the Security Trustee
and the Agent Bank;

"Intercompany Loan Enforcement Notice" means an enforcement notice served by
the Security Trustee on Funding in relation to the enforcement of the Funding
Security following the occurrence of an Intercompany Loan Event of Default;

"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;

"Intercompany Loan Ledger" means the sub-ledger on which the Cash Manager will
record payments of interest and repayments of principal made under any
Intercompany Loan;

"Intercompany Loan Terms and Conditions" means the general terms and
conditions applicable to each Intercompany Loan Agreement, which have been
signed for the purposes of identification by the Security Trustee, the Agent
Bank and Funding on the Initial Closing Date, as amended, restated, novated,
varied or supplemented from time to time and shall include any additional
and/or replacement intercompany loan terms and conditions entered into from
time to time in accordance with the Transaction Documents;

"Interest Rate Shortfall" has the meaning given to it in Clause 4.3(a) of the
Administration Agreement;

"Interim Calculation Period" means the portion of a Trust Calculation Period
that is less than a full Trust Calculation Period during which any single
calculation of the Funding Share, Funding Share Percentage, Seller Share and
Seller Share Percentage applies;

"Irrecoverable VAT" means any amount in respect of VAT incurred by a party to
the Transaction Documents (for the purposes of this definition, a "Relevant
Party") as part of a payment in respect of

                                      28
<PAGE>

which it is entitled to be indemnified under the relevant Transaction
Documents to the extent that the Relevant Party does not or will not receive
and retain a credit or repayment of such VAT as input tax (as that expression
is defined in section 24(1) of the Value Added Tax Act 1994) for the
prescribed accounting period (as that expression is used in section 25(1) of
the Value Added Tax Act 1994) to which such input tax relates;

"Interest Rate Swap Agreement" means, for any Issuer, the ISDA Master
Agreement(s), Schedule(s), Confirmation(s) and any credit support documents
thereto entered into among such Issuer, the relevant Interest Rate Swap
Provider, the Note Trustee and any credit support provider, as may be amended,
restated, novated, varied or supplemented from time to time and shall include
any additional and/or replacement interest rate swap agreement entered into by
such Issuer from time to time in connection with the Notes issued by such
Issuer;

"Interest Rate Swap Provider" means in relation to any Issuer the swap
counterparty to such Issuer under any relevant Interest Rate Swap Agreement of
such Issuer;

"Interest Rate Swap Provider Default" means the occurrence of an Event of
Default or a Downgrade Termination Event (as defined in the relevant Interest
Rate Swap Agreement) where the Interest Rate Swap Provider is the Defaulting
Party or the Affected Party (as defined in the relevant Interest Rate Swap
Agreement);

"Issuer" means the First Issuer or, as the context may require, any New
Issuer;

"Issuer Account Bank" means, in relation to any Issuer, the bank at which the
Issuer Bank Accounts of such Issuer are maintained from time to time pursuant
to the relevant Issuer Transaction Documents;

"Issuer Account Mandates" means, in relation to any Issuer, the resolutions,
instructions, and Authorised Signatories relating to the Issuer Bank Accounts
substantially in the form scheduled to the relevant Issuer Bank Account
Agreement;

"Issuer Allocable Principal Receipts" has the meaning given to it in the rules
for application of Funding Available Principal Receipts under the Funding
Pre-Enforcement Principal Priority of Payments set out in Part I of Schedule 3
to the Funding Deed of Charge;

"Issuer Allocable Revenue Receipts" has the meaning given to it in the rules
for application of Funding Available Principal Receipts under the Funding
Pre-Enforcement Principal Priority of Payments set out in Part I of Schedule 3
to the Funding Deed of Charge;

"Issuer Arrears Test" is satisfied on a Payment Date if any Issuer Cash
Manager or the Cash Manager calculates on the Distribution Date immediately
preceding such Payment Date that as of the last day of the Trust Calculation
Period immediately preceding that Payment Date (i) the aggregate Current
Balance of the Mortgage Loans which are then in arrears for at least 3 months
is less than 4% of the aggregate Current Balance of all Mortgage Loans, unless
the Rating Agencies have confirmed that the then-current ratings of the Notes
will not be adversely affected by such test not having been met; and (ii) the
aggregate Interest Arrears in respect of all of the Mortgage loans in the
Mortgages Trust as a percentage of the aggregate gross interest due on all
Mortgage Loans during the previous 12 months, does not exceed 2%, or such
other percentage as is then acceptable to the then-current Rating Agencies at
such time.

"Issuer Available Principal Receipts" means, in relation to the First Issuer,
the Second Issuer and the Third Issuer, the First Issuer Available Principal
Receipts, the Second Issuer Available Principal

                                      29
<PAGE>

Receipts, and the Third Issuer Available Principal Receipts respectively, and
in relation to any New Issuer, the Current Issuer Available Principal Receipts
as defined in the Issuer Master Definitions Schedule relating to that New
Issuer;

"Issuer Available Revenue Receipts" means, in relation to the First Issuer,
the Second Issuer and the Third Issuer, the First Issuer Available Revenue
Receipts, the Second Issuer Available Revenue Receipts, and the Third Issuer
Available Revenue Receipts respectively, and in relation to any New Issuer,
the Current Issuer Available Revenue Receipts as defined in the Issuer Master
Definitions Schedule relating to that New Issuer;

"Issuer Bank Account Agreement" means, in relation to the First Issuer, the
Second Issuer and the Third Issuer, the First Issuer Bank Account Agreement,
the Second Issuer Bank Account Agreement and the Third Issuer Bank Account
Agreement respectively, and in relation to any New Issuer, the Current Issuer
Bank Account Agreement as defined in the Issuer Master Definitions Schedule
relating to that New Issuer;

"Issuer Bank Accounts" means, in relation to the First Issuer, the Second
Issuer and the Third Issuer, the First Issuer Bank Accounts, the Second Issuer
Bank Accounts and the Third Issuer Bank Accounts respectively and, in relation
to any New Issuer, the Current Issuer Bank Accounts as defined in the Issuer
Master Definitions Schedule relating to that New Issuer;

"Issuer Cash Management Agreement" means, in relation to the First Issuer, the
Second Issuer and the Third Issuer, the First Issuer Cash Management
Agreement, the Second Issuer Cash Management Agreement and the Third Issuer
Cash Management Agreement respectively, and in relation to any New Issuer, the
Current Issuer Cash Management Agreement as defined in the Issuer Master
Definitions Schedule relating to that New Issuer;

"Issuer Cash Manager" means, in relation to the First Issuer, the First Issuer
Cash Manager and in relation to any New Issuer, the person identified as
managing all cash transactions and maintaining certain ledgers on behalf of
such Issuer pursuant to the relevant Issuer Cash Management Agreement or such
other person as may from time to time be appointed as cash manager for such
Issuer pursuant to the relevant Issuer Cash Management Agreement;

"Issuer Deed of Charge" means in relation to the First Issuer, the First
Issuer Deed of Charge and in relation to any New Issuer, the deed of charge
entered into such Issuer with the Note Trustee;

"Issuer Jersey Secured Property" means:

(a)  in relation to the First Issuer, the First Issuer Jersey Secured Property
     as defined in the Issuer Master Definitions Schedule relating to the
     First Issuer;

(b)  in relation to the Second Issuer, the Second Issuer Jersey Secured
     Property as defined in the Issuer Master Definitions Schedule relating to
     the Second Issuer;

(c)  in relation to the Third Issuer, the Third Issuer Jersey Secured Property
     as defined in the Issuer Master Definitions Schedule relating to the
     Third Issuer; and

(d)  in relation to any other Issuer, the Current Issuer Jersey Secured
     Property as defined in the Issuer Master Definitions Schedule relating to
     that Issuer;

"Issuer Junior Notes" means:

(a)  in relation to the First Issuer, the Series 1 Class C Notes and the
     Series 2 Class C Notes as

                                      30
<PAGE>

     defined in the Issuer Master Definitions Schedule relating to the First
     Issuer,

(b)  in relation to the Second Issuer, the Series 1 Class C Notes, the Series
     2 Class C Notes as defined in the Issuer Master Definitions Schedule
     relating to the Second Issuer, and

(c)  in relation to any other Issuer, the Junior Notes as defined in the
     relevant Issuer Master Definitions Schedule;

"Issuer Liquidity Reserve Fund" means, in relation to the First Issuer, the
First Issuer Liquidity Reserve Fund, in relation to the Second Issuer, the
Second Issuer Liquidity Reserve Fund and in relation to any New Issuer, the
Current Issuer Liquidity Reserve Fund as defined in the Issuer Master
Definitions Schedule which in each case Funding will be required to establish
pursuant to and in the circumstances set out in the Intercompany Loan of such
New Issuer ;

"Issuer Liquidity Reserve Ledger" means, in relation to the First Issuer, the
First Issuer Liquidity Reserve Ledger, in relation to the Second Issuer, the
Second Issuer Liquidity Reserve Ledger and in relation to any New Issuer, the
Current Issuer Liquidity Reserve Ledger as defined in Issuer Master
Definitions Schedule in each case maintained by the Cash Manager in the name
of Funding to record the balance from time to time of the Issuer Liquidity
Reserve Fund, if any;

"Issuer Liquidity Reserve Required Amount" means, in relation to the First
Issuer, the First Issuer Liquidity Reserve Required Amount, in relation to the
Second Issuer, the Second Issuer Liquidity Reserve Required Amount and in
relation to any New Issuer, Current Issuer Liquidity Reserve Required Amount
as defined in the Issuer Master Definitions Schedule relating to that New
Issuer in each case required to be maintained in the Issuer Liquidity Reserve
Fund, if any;

"Issuer Master Definitions Schedule" means, in relation to the First Issuer,
the First Issuer Master Definitions Schedule and in relation to any New Issuer
the relevant master definitions schedule relating to that New Issuer;

"Issuer Mezzanine Notes" means:

(a)  in relation to the First Issuer, the Series 1 Class B Notes and the
     Series 2 Class B Notes as defined in the Issuer Master Definitions
     Schedule relating to the First Issuer,

(b)  in relation to the Second Issuer, the Series 1 Class B Notes, the Series
     2 Class B Notes as defined in the Issuer Master Definitions Schedule
     relating to the Second Issuer, and

(c)  in relation to any New Issuer, the Mezzanine Notes as defined in the
     relevant Issuer Master Definitions Schedule;

"Issuer Post-Enforcement Priority of Payments" means, in relation to the First
Issuer, the Second Issuer and the Third Issuer, the First Issuer
Post-Enforcement Priority of Payments, the Second Issuer Post-Enforcement
Priority of Payments and the Third Issuer Post-Enforcement Priority of
Payments respectively, and in relation to any New Issuer, the Current Issuer
Post-Enforcement Priority of Payments as defined in the Issuer Master
Definitions Schedule relating to that New Issuer;

"Issuer Post-Liquidity Payments" means, in the case of the First Issuer, the
payments set out in items (H) through (J) under the First Issuer
Pre-Enforcement Revenue Priority of Payments (or the relevant payments in the
equivalent items under such other First Issuer Priority of Payments as may
apply on that Payment Date), in the case of the Second Issuer, the payments
set out in items (H) through (J) under the Second Issuer Pre-Enforcement
Revenue Priority of Payments (or the relevant payments in the equivalent items
under such other Second Issuer Priority of Payments as may apply

                                      31
<PAGE>

on that Payment Date) and in the case of any New Issuer, means the Current
Issuer Post-Liquidity Payments as defined in the Issuer Master Definitions
Schedule relating to that New Issuer;

"Issuer Post-Reserve Payments" means, in the case of the First Issuer, the
payments set out in item (K) under the First Issuer Pre-Enforcement Revenue
Priority of Payments (or the relevant payments in the equivalent items under
such other First Issuer Priority of Payments as may apply on that Payment
Date), in the case of the Second Issuer, the payments set out in item (K)
under the Second Issuer Pre-Enforcement Revenue Priority of Payments (or the
relevant payments in the equivalent items under such other Second Issuer
Priority of Payments as may apply on that Payment Date), and in the case of
any New Issuer, means the Current Issuer Post-Reserve Payments as defined in
the Issuer Master Definitions Schedule relating to that New Issuer;

"Issuer Post Start-Up Payments" means, in the case of the First Issuer, the
payments set out in items (L) and (M) under the First Issuer Pre-Enforcement
Revenue Priority of Payments (or the relevant payments in the equivalent items
under such other First Issuer Priority of Payments as may apply on that
Payment Date), in the case of the Second Issuer, the payments set out in items
(L) and (O) under the Second Issuer Pre-Enforcement Revenue Priority of
Payments (or the relevant payments in the equivalent items under such other
Second Issuer Priority of Payments as may apply on that Payment Date) and in
the case of any New Issuer, means the Current Issuer Post Start-Up Payments as
defined in the Issuer Master Definitions Schedule relating to that New Issuer;
"Issuer Pre-Enforcement Principal Priority of Payments" means, in relation to
the First Issuer, the Second Issuer and the Third Issuer, the First Issuer
Pre-Enforcement Principal Priority of Payments, the Second Issuer
Pre-Enforcement Principal Priority of Payments and the Third Issuer
Pre-Enforcement Principal Priority of Payments respectively, and in relation
to any New Issuer, the Current Issuer Pre-Enforcement Principal Priority of
Payments as defined in the Issuer Master Definitions Schedule relating to that
New Issuer;

"Issuer Pre-Enforcement Priority of Payments" means, in relation to the First
Issuer, the Second Issuer and the Third Issuer, the First Issuer
Pre-Enforcement Priority of Payments, the Second Issuer Pre-Enforcement
Priority of Payments and the Third Issuer Pre-Enforcement Priority of Payments
respectively, and in relation to any New Issuer, the Current Issuer
Pre-Enforcement Priority of Payments as defined in the Issuer Master
Definitions Schedule relating to that New Issuer;

"Issuer Pre-Enforcement Revenue Priority of Payments" means, in relation to
the First Issuer, the Second Issuer and the Third Issuer, the First Issuer
Pre-Enforcement Revenue Priority of Payments, the Second Issuer
Pre-Enforcement Revenue Priority of Payments and the Third Issuer
Pre-Enforcement Revenue Priority of Payments respectively, and in relation to
any New Issuer, the Current Issuer Pre-Enforcement Revenue Priority of
Payments as defined in the Issuer Master Definitions Schedule relating to that
New Issuer;

"Issuer Pre-Liquidity Payments" means, in the case of the First Issuer, the
payments set out in items (A) through (G) under the First Issuer
Pre-Enforcement Revenue Priority of Payments (or the relevant payments in the
equivalent items under such other First Issuer Priority of Payments as may
apply on that Payment Date), in the case of the Second Issuer, the payments
set out in items (A) through (G) under the Second Issuer Pre-Enforcement
Revenue Priority of Payments (or the relevant payments in the equivalent items
under such other Second Issuer Priority of Payments as may apply on that
Payment Date) and, in the case of any New Issuer, means the Current Issuer
Pre-Liquidity Payments as defined in the Issuer Master Definitions Schedule
relating to that New Issuer;

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<PAGE>

"Issuer Pre-Reserve Payments" means, in relation to any Issuer (with the
exception of the First Issuer), the Current Issuer Pre-Reserve Payments as
defined in the Issuer Master Definitions Schedule relating to that New Issuer;

"Issuer Principal Deficiency Ledger" means, in relation to the First Issuer,
the First Issuer Principal Deficiency Ledger and in relation to any New
Issuer, the ledger maintained by the Issuer Cash Manager in the name of such
Issuer which will be established on the relevant Closing Date and will be
sub-divided into sub ledgers corresponding to the classes of Notes issued by
such Issuer in order to record Losses allocated to the Intercompany Loan of
such Issuer which are to be allocated to such Notes, the application of Issuer
Available Principal Receipts of such Issuer in paying interest on the Notes
issued by such Issuer and certain amounts ranking in priority thereto in
accordance with the Issuer Pre-Enforcement Revenue Priority of Payments of
such Issuer and the application by Funding of Issuer Allocable Principal
Receipts of the such Issuer to fund or replenish the Issuer Liquidity Reserve
Fund (if any) of such Issuer;

"Issuer Principal Deficiency Sub Ledger" means, in relation to the First
Issuer, any First Issuer Principal Deficiency Sub Ledger and in relation to
any New Issuer, any of the sub ledgers of the Issuer Principal Deficiency
Ledger of such Issuer relating to any class of Notes issued by such Issuer;

"Issuer Principal Payments" means, in relation to the First Issuer, the
payments set forth in items (A) through (E) under the First Issuer
Pre-Enforcement Principal Priority of Payments (or the relevant payments set
forth in the equivalent items in such other First Issuer Priority of Payments
as may apply on that Payment Date), in relation to the Second Issuer, the
payments set forth in items (A) through (E) under the Second Issuer
Pre-Enforcement Principal Priority of Payments (or the relevant payments set
forth in the equivalent items in such other Second Issuer Priority of Payments
as may apply on that Payment Date) and in relation to any New Issuer, the
Current Issuer Principal Payments as defined in the Issuer Master Definitions
Schedule relating to that New Issuer;

"Issuer Principal Receipts" means, in relation to the First Issuer, the First
Issuer Principal Receipts and in relation to any New Issuer, the principal
amounts repaid by Funding in respect of the Intercompany Loan of such Issuer;

"Issuer Priority of Payments" means, in relation to the First Issuer, the
First Issuer Priority of Payments and in relation to any New Issuer, as
applicable, any of the relevant Issuer Pre-Enforcement Revenue Priority of
Payments, the Issuer Pre-Enforcement Principal Priority of Payments or the
Issuer Post-Enforcement Priority of Payments;

"Issuer Reserve Additional Amount" means, in relation to any Issuer, the
Current Issuer Reserve Additional Amount as defined in the Issuer Master
Definitions Schedule relating to that Issuer;

"Issuer Reserve Fund" means, in relation to the First Issuer, the First Issuer
Reserve Fund, in relation to the Second Issuer, the Second Issuer Reserve Fund
and in relation to any New Issuer, the Current Issuer Reserve Fund as defined
in the Issuer Master Definitions Schedule relating to that Issuer, in each
case established in the name of Funding in respect of such Issuer as required
under the terms of the relevant Intercompany Loan of such Issuer on the
relevant Closing Date in an amount equal to the Issuer Reserve Required
Amount;

"Issuer Reserve Fund Ledger" means, in relation to the First Issuer, the First
Issuer Reserve Fund Ledger, in relation to the Second Issuer, the Second
Issuer Reserve Fund Ledger and in relation to any New Issuer, the Current
Issuer Reserve Fund Ledger as defined in the Issuer Master Definitions

                                      33
<PAGE>

Schedule relating to that Issuer, in each case maintained by the Cash Manager
in the name of Funding to record the amount credited to the Issuer Reserve
Fund held by Funding in respect of such Issuer on the relevant Closing Date,
and subsequent withdrawals and deposits in respect of the Issuer Reserve Fund;

"Issuer Reserve Required Amount" means, in relation to the First Issuer, the
First Issuer Reserve Required Amount, in relation to the Second Issuer, the
Second Issuer Reserve Required Amount and in relation to any New Issuer, the
Current Issuer Reserve Required Amount as defined in the Issuer Master
Definitions Schedule relating to that Issuer in each case required to be
maintained in the Issuer Reserve Fund of such Issuer;

"Issuer Reserve Requirement" means a requirement that will be satisfied in
respect of any Issuer if, after taking account of the application of any
Funding Available Revenue Receipts to the credit of the Issuer Reserve Fund
Ledgers, the amount of funds in the Issuer Reserve Fund of such Issuer is
equal to the relevant Issuer Reserve Required Amount;

"Issuer Secured Creditors" means, in relation to the First Issuer, the Second
Issuer and the Third Issuer, the First Issuer Secured Creditors, the Second
Issuer Secured Creditors and the Third Issuer Secured Creditors respectively
and in relation to any New Issuer, the Current Issuer Secured Creditors as
defined in the Issuer Master Definitions Schedule relating to that New Issuer;

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

"Issuer Senior Notes" means:

(a)  in relation to the First Issuer, the Series 1 Class A Notes and the
     Series 2 Class A Notes as defined in the Issuer Master Definitions
     Schedule relating to the First Issuer,

(b)  in relation to the Second Issuer, the Series 1 Class A Notes, the Series
     2 Class A Notes as defined in the Issuer Master Definitions Schedule
     relating to the Second Issuer, and

(c)  in relation to any other Issuer, the Senior Notes as defined in the
     relevant Issuer Master Definitions Schedule;

"Issuer Special Notes" means:

(a)  in relation to the Second Issuer, the Series 2 Class D Notes as defined
     in the Issuer Master Definitions Schedule relating to the First Issuer,

(b)  in relation to any other Issuer (other than the First Issuer), the
     Special Notes as defined in the relevant Issuer Master Definitions
     Schedule;

"Issuer Start-up Loan Agreement" means, in relation to any Issuer, the
agreement entered into on or about the Closing Date in relation to that Issuer
between Funding, the relevant Start-up Loan Provider and the Security Trustee
relating to the provision of the Issuer Start-up Loan to Funding as may be
amended, restated, novated, varied or supplemented from time to time and shall
include any additional and/or replacement start-up loan agreement entered into
by such parties in accordance with the Transaction Documents;

"Issuer Start-up Loan Provider" means Northern Rock, in its capacity as
provider of an Issuer Start-up Loan and/or such other person or persons for
the time being the lender under the relevant Issuer

                                      34
<PAGE>

Start-up Loan Agreement;

"Issuer Transaction Accounts" means, in relation to the First Issuer, the
Second Issuer and the Third Issuer, the First Issuer Transaction Accounts, the
Second Issuer Transaction Accounts and the Third Issuer Transaction Accounts
and in relation to any New Issuer, the Current Issuer Transaction Accounts as
defined in the Issuer Master Definitions Schedule relating to that Issuer;

"Issuer Transaction Documents" means, in relation to the First Issuer, the
Second Issuer and the Third Issuer, the First Issuer Transaction Documents,
the Second Issuer Transaction Documents and the Third Issuer Transaction
Documents and in relation to any New Issuer, the Current Issuer Transaction
Documents as defined in the Issuer Master Definitions Schedule relating to
that Issuer;

"Jersey Account Bank" means Lloyds TSB Bank plc, Jersey International Branch,
4 Bond Street, St Helier, Jersey JE4 8ZE, Channel Islands;

"Jersey Secured Property" means, as the context requires, the Issuer Jersey
Secured Property or the Funding Jersey Secured Property;

"Jersey Security Law" has the meaning given to it in Clause 3.1 (Trust
Property) of the Funding Deed of Charge;

"Lending Criteria" means the lending criteria of the Seller in respect of
Mortgage Loans other than Personal Secured Loans which may be amended from
time to time (forming part of the Seller's Policy) which as at 1 January 2004
is set out in Schedule 12 (Lending Criteria) to the Mortgage Sale Agreement
and/or such other criteria as would be acceptable to a reasonable, prudent
mortgage lender. Lending Criteria for Personal Secured Loans are generally
similar though not as extensive as the Lending Criteria applicable to other
Mortgage Loans;

"LIBOR" means, unless stated otherwise, the London inter-bank offered rate for
deposits in the relevant currency, as determined by the relevant Agent Bank in
respect of the related Notes as specified in the Conditions or otherwise on
the following basis:

(1)  on the applicable Interest Determination Date the Agent Bank will
     determine the offered quotation to leading banks for deposits in the
     relevant currency for a period equal to the relevant period, to be
     determined by reference to the display as quoted on the
     Dow-Jones/Telerate Page No. 3750. If the Telerate Page No. 3750 stops
     providing these quotations, the replacement page for the purposes of
     displaying this information will be used. If the replacement page stops
     displaying the information, another service as determined by the relevant
     Issuer with the approval of the Note Trustee will be used. In each of
     these cases, such determination will be made as at or about 11.00 a.m.
     (London time) on such date;

(2)  if, on any such Interest Determination Date, the screen rate is
     unavailable, the Agent Bank will:

(a)  request the principal London office of each of the Reference Banks to
     provide the Agent Bank with its offered quotation to leading banks for
     deposits in the relevant currency of the equivalent amount, and for a
     time equal to the relevant period, in the London inter-bank market as at
     or about 11.00 a.m. (London time) on such date; and

(b)  calculate the arithmetic mean, rounded upwards to five decimal places, of
     those quotations;

(3)  if on any such Interest Determination Date, the screen rate is
     unavailable and only two or three of the Reference Banks provide offered
     quotations, the relevant rate for the relevant

                                      35
<PAGE>

     period will be the arithmetic mean of the quotations as calculated in
     (2); and

(4)  if fewer than two Reference Banks provide quotations, the Agent Bank will
     consult with the Note Trustee and the relevant Issuer for the purpose of
     agreeing a total of two banks to provide such quotations and the relevant
     rate for the relevant period will be the arithmetic mean of the
     quotations as calculated in (2). If no such banks agree then the relevant
     rate for the relevant period will be the rate in effect for the last
     preceding such period for which (1) or (2) was applicable;

"Life Policy" means each life insurance and/or assurance policy which serves
as collateral security for the repayment of a Mortgage Loan;

"Lloyds TSB" means Lloyds TSB Bank plc;

"Lloyds TSB Collection Account" means the account in the name of Northern Rock
as Administrator (sort code 30/00/02, account number 0893639) held with Lloyds
TSB Bank plc and maintained subject to the terms of the Collection Bank
Agreement or such additional or replacement account as may for the time being
be in place;

"Loan Repurchase Notice" means the notice served upon the Seller by the
Mortgages Trustee or upon the Mortgages Trustee by the Seller requiring the
repurchase by or re-transfer to (pursuant to Clause 8.4 (Repurchase) of the
Mortgage Sale Agreement) or purchase by or transfer to (pursuant to Clause 8.5
(Purchase of Product Switches, Further Advances and purchases relating to
Personal Secured Loans) of the Mortgage Sale Agreement) the Seller of
specified Mortgage Loans and their Related Security, as set forth in Schedule
7 to the Mortgage Sale Agreement;

"London Business Day" means a day (other than a Saturday or Sunday or public
holiday) on which banks are generally open for business in London;

"London Stock Exchange" means at any time the London Stock Exchange plc or any
other Person which at that time administers and manages the primary market in
the United Kingdom upon which the Notes are formally admitted for public
trading;

"Losses" means the realised losses experienced on the Mortgage Loans which are
in the Mortgages Portfolio;

"Losses Ledger" means the ledger of such name created and maintained by the
Cash Manager in the name of the Mortgages Trustee pursuant to the Cash
Management Agreement to record the Losses on the Mortgage Portfolio;

"LTV ratio" or "loan-to-value ratio" means , in respect of any Mortgage Loan
assigned to the Mortgages Trust, the ratio of the outstanding balance of such
Mortgage Loan to the value of the Mortgaged Property securing such Mortgage
Loan; and in respect of the Seller's decision as to whether to make a mortgage
loan to a prospective borrower and for purposes of determining whether a MIG
Policy is necessary in connection with a mortgage loan, the ratio of the
outstanding balance of such mortgage loan to the lower of the purchase price
or valuation of the mortgages property securing such mortgage loan as
determined by the relevant valuation by the Seller;

"LTV tests" mean two tests which assign a credit enhancement value (i) to each
Mortgage Loan in the Mortgage Portfolio based on its current LTV ratio and the
amount of mortgage indemnity cover on that Mortgage Loan, and (ii) calculated
to include any related unsecured portion of a Mortgage Loan in respect of the
Together product based on its current LTV ratio and the amount of mortgage

                                      36
<PAGE>

indemnity cover on that mortgage loan. The weighted average credit enhancement
value of the Mortgage Portfolio is then determined;

"Mandates" means the resolutions, instructions and signature authorities
relating to any of the Barclays Collection Account, the Lloyds TSB Collection
Account, the Mortgages Trustee Bank Accounts, the Funding Bank Accounts and
the Issuer Transaction Accounts in the respective forms agreed between the
relevant parties from time to time in accordance with the Collection Bank
Agreement, the Bank Account Agreement, the relevant Funding (Issuer) Bank
Account Agreement and the relevant Issuer Bank Account Agreement, as
applicable;

"Master Definitions Schedule" means this Master Definitions Schedule signed
for the purposes of identification by Brown & Wood and Clifford Chance Limited
Liability Partnership on or about the Initial Closing Date, as the same may be
amended, varied or supplemented from time to time, which is a schedule of the
definitions used in the Transaction Documents;

"MHA Documentation" means an affidavit, consent or renunciation granted in
terms of the Matrimonial Homes (Family Protection) (Scotland) Act 1981 in
connection with a Scottish Mortgage or the Mortgaged Property secured thereby;

"MIG Policies" means the MIG insurance policy identified in paragraph 1 of
Schedule 4 (Insurance Contracts) to the Mortgage Sale Agreement and any
endorsements or extensions thereto as issued from time to time and any
additional, replacement or substitute MIG insurance policy which relates to
the Mortgage Loans in the Mortgages Portfolio from time to time;

"Minimum Seller Share" means an amount included in the Initial Seller Share
which is calculated in accordance with Clause 9.2 (Fluctuation of Minimum
Seller Share on each Distribution Date) of the Mortgages Trust Deed and which,
as at the Initial Closing Date is (GBP)50,000,000. The Minimum Seller Share
may be recalculated in accordance with the Mortgages Trust Deed;

"Money Market Notes" means, in respect of any Issuer, the Money Market Notes
as defined in the relevant Issuer Master Definitions Schedule and eligible for
purchase by money market funds under Rule 2a-7 of the US Investment Company
Act of 1940, as amended;

"Monthly Payment" means, in respect of a Mortgage Loan, the amount which the
applicable Mortgage Conditions require a Borrower to pay on a Monthly Payment
Date in respect of such Mortgage Loan;

"Monthly Payment Date" means, in respect of a Mortgage Loan, the date in each
month on which the relevant Borrower is required to make a payment of interest
and, if applicable, principal, in respect of such Mortgage Loan, as required
by the applicable Mortgage Conditions;

"Moody's" means Moody's Investors Services Inc. and includes any successor to
its rating business;

"Mortgage" means (i) in respect of any Mortgage Loan in the Mortgage Portfolio
(other than Personal Secured Loans), the first priority charge by way of legal
mortgage (in relation to English Mortgage Loans) or first ranking standard
security (in relation to Scottish Mortgage Loans), in each case which secures
the repayment of that Mortgage Loan including the Mortgage Conditions
applicable to it; and (ii) in respect of any Personal Secured Loan in the
Mortgage Portfolio, the second priority legal charge over English Properties
or the second ranking standard security over Scottish Properties;

"Mortgage Account" means as the context requires (i) all Mortgage Loans
secured on the same

                                      37
<PAGE>

Mortgaged Property and thereby forming a single mortgage account or (ii) an
account maintained by the Administrator in respect of a particular Mortgage
Loan to record all amounts due in respect of that Mortgage Loan (whether by
way of principal, interest or otherwise) and all amounts received in respect
thereof;

"Mortgage Conditions" means, in relation to a Mortgage Loan, the terms and
conditions applicable to that Mortgage Loan and its Related Security as set
out in the relevant Seller's "Mortgage Conditions" booklet and the Seller's
relevant general conditions from time to time as varied by the relevant
Mortgage Loan Agreement and the relevant Mortgage Deed, and any variation or
supplement thereto;

"Mortgage Deed" means, in relation to each Mortgage, the deed creating such
Mortgage including, unless the context otherwise requires, the Mortgage
Conditions applicable thereto;

"Mortgage Loan" means unless specified otherwise any mortgage loan and any
Permitted Replacement Mortgage Loan which is sold and assigned by the Seller
to the Mortgages Trustee from time to time pursuant to the terms of the
Mortgage Sale Agreement and referenced by its mortgage loan identifier number
and comprising the aggregate of all principal sums, interest, costs, charges,
expenses and other monies (including all Further Advances) due or owing with
respect to that Mortgage Loan under the relevant Mortgage Conditions by a
Borrower on the security of a Mortgage from time to time outstanding or, as
the context may require, the Borrower's obligations in respect of the same;

"Mortgage Loan Agreement" means, in relation to any Mortgage Loan, the
agreement, facility letter or accepted offer of advance pursuant to which the
monies secured by the relevant Mortgage were advanced to the Borrower (as
varied from time to time in accordance with the applicable Mortgage Conditions
and including any modifying agreement within the meaning of Section 82 of the
Consumer Credit Act 1974 insofar as it relates to that Mortgage Loan);

"Mortgage Loan Files" means, in relation to each Mortgage Loan, the file or
files (including files kept in microfiche format or similar electronic data
retrieval system) containing correspondence between the Borrower and the
Seller and including the Standard Mortgage Documentation applicable to that
Mortgage Loan, each letter of offer in respect of such Mortgage Loan and other
relevant documents;

"Mortgage Portfolio" means, on any particular date, the combined Initial
Mortgage Portfolio and any New Mortgage Portfolio which has been sold and
assigned to the Mortgages Trustee on such date pursuant to the Mortgage Sale
Agreement, taking account of, among other things, the addition and/or removal
of any Mortgage Loans to or from that portfolio from the relevant Closing Date
but excluding any Mortgage Loan and its Related Security which has been
redeemed in full or repurchased by the Seller pursuant to Clause 8 (Warranties
and Repurchase by the Seller) of the Mortgage Sale Agreement;

"Mortgage Rate" means the rate at which interest accrues on a Mortgage Loan
from time to time;

"Mortgage Sale Agreement" means the mortgage sale agreement entered into on or
about the Initial Closing Date among the Seller, the Mortgages Trustee,
Funding and the Security Trustee in relation to the assignment from time to
time of the Mortgage Portfolio to the Mortgages Trustee as may be amended,
restated, novated, varied or supplemented from time to time and shall include
any additional and/or replacement mortgage sale agreement entered into by such
parties from time to time in

                                      38
<PAGE>

accordance with the Transaction Documents;

"Mortgage Terms" means, in relation to a Mortgage Loan and the relevant
Mortgage, the applicable Mortgage Conditions;

"Mortgaged Property" means, in relation to any Mortgage Loan, the freehold or
leasehold property in England and Wales or (as applicable) the heritable or
long leasehold property in Scotland and, in each case, all rights and security
attached or appurtenant or related thereto and all buildings and fixtures
thereon which are subject to the Mortgage securing repayment of such Mortgage
Loan;

"Mortgagee" means, in relation to any Mortgage Loan, the person for the time
being entitled to exercise the rights of the mortgagee or (in Scotland)
Heritable Creditor under the relevant Mortgage securing repayment of such
Mortgage Loan;

"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) and the Seller (as to the Seller Share)
pursuant to the Mortgages Trust Deed so that each Beneficiary has an undivided
beneficial interest therein;

"Mortgages Trust Deed" means the mortgages trust deed entered into among the
Mortgages Trustee, Funding and the Seller on 26 March 2001 as may be amended,
restated, novated, varied or supplemented from time to time and shall include
any additional and/or replacement mortgage trust deed entered into by such
parties from time to time in accordance with the Transaction Documents;

"Mortgages Trustee" means Granite Finance Trustees Limited, a company
incorporated with limited liability under the laws of Jersey, registered
number 79309;

"Mortgages Trustee Available Revenue Receipts" means on any Distribution Date
an amount equal to the aggregate of (in each case in the period prior to the
end of the immediately preceding Trust Calculation Period):

(a)  Revenue Receipts received by the Mortgages Trustee (which shall include,
     in respect of any Non-Flexible Mortgage Loan only, the amount of any
     Overpayment made by the Borrower in respect of such Mortgage Loan as is
     equal to the amount of any Underpayment of interest made by such Borrower
     in respect of such Mortgage Loan in the immediately preceding Trust
     Calculation Period provided that such Underpayment of interest is made
     prior to 31 December in the year in which such Overpayment is received
     from the Borrower),

(b)  interest payable to the Mortgages Trustee on the Mortgages Trustee Bank
     Accounts, which will be received on or prior to the relevant Distribution
     Date, and

(c)  any Contribution paid by the Seller to the Mortgages Trustee to fund any
     Non-Cash Re-Draw in respect of any Flexible Mortgage Loan,

     less

(d)  Third Party Amounts, and

(e)  amounts distributed on each previous Distribution Date in accordance with
     the Mortgages Trust Distribution of Revenue Receipts

PROVIDED THAT Revenue Receipts in paragraph (a) above shall for this purpose
include such amount of any Overpayment made by a Borrower in respect of a
Non-Flexible Mortgage Loan and standing to the credit of the Overpayments Ledger
as is applied on such date in reduction of any

                                      39
<PAGE>

Underpayment of Interest made by such Borrower in respect of such Mortgage
Loan in the immediately preceding Trust Calculation Period (provided that such
Underpayment of Interest is made prior to 31 December in the year in which
such Overpayment is received from the Borrower) in accordance with Clause 13.1
(Non-Flexible Mortgage Loans) of the Mortgages Trust Deed;

"Mortgages Trustee Bank Accounts" means the Mortgages Trustee Transaction
Account and the Mortgages Trustee GIC Account;

"Mortgages Trustee Collection Accounts Amounts" means all amounts from time to
time standing to the credit of the Collection Accounts to the extent that such
amounts represent payments into the Collection Accounts of sums derived or
resulting from the Mortgage Loans and their Related Security sold to the
Mortgages Trustee pursuant to the Mortgage Sale Agreement;

"Mortgages Trustee Distribution of Principal Receipts" means the order in
which the Cash Manager will apply the Mortgages Trustee Principal Receipts on
each Distribution Date, as set forth in Clause 11 (Distribution of Principal
Receipts) of the Mortgages Trust Deed;

"Mortgages Trustee Distribution of Revenue Receipts" means the order in which
the Cash Manager will apply the Mortgages Trustee Available Revenue Receipts
on each Distribution Date, as set forth in Clause 10 (Distribution of Revenue
Receipts) of the Mortgages Trust Deed;

"Mortgages Trustee GIC Account Mandate" means the resolutions, instructions
and signature authorities relating to the Mortgages Trustee GIC Account
substantially in the form set out in Schedule 1 to the Bank Account Agreement;

"Mortgages Trustee GIC Account" means the account in the name of the Mortgages
Trustee (sort code 30/16/63, account number 27034016) held at Lloyds TSB plc,
Jersey International Branch, 4 Bond Street, St Helier, Jersey JE4 8ZE, Channel
Islands and maintained subject to the terms of Mortgages Trustee Guaranteed
Investment Contract and the Bank Account Agreement and such additional or
replacement bank accounts of the Mortgages Trustee as may for the time being
be in place with the prior consent of the Security Trustee including, on and
after 26 May 2004, the account in the name of the Mortgages Trustee (sort code
30-00-59, account number 00000000, reference 1322000) held at Northern Rock;

"Mortgages Trustee GIC Provider" means:

(a)  up to 26 May 2004, Lloyds TSB Bank plc, Jersey International Branch, 25
     New Street, St. Helier, Jersey JE4 8ZE, Channel Islands, and

(b)  from (and including) 26 May 2004, Northern Rock,

(provided that during the period 26 May 2004 to the Distribution Date falling in
June 2004, the term "Mortgages Trustee GIC Provider" shall mean both Lloyds TSB
Bank plc, Jersey International Branch and Northern Rock, unless the context
admits otherwise) or such other person or persons as are for the time being the
GIC provider to the Mortgages Trustee under the Mortgages Trustee Guaranteed
Investment Contract;

"Mortgages Trustee Guaranteed Investment Contract" means the guaranteed
investment contract dated on or about the Initial Closing Date between the
Mortgages Trustee, the Mortgages Trustee GIC Provider, the Security Trustee
and the Cash Manager under which the Mortgages Trustee GIC Provider agrees to
pay the Mortgages Trustee a guaranteed rate of interest on the balance of the
Mortgages Trustee GIC Account from time to time as may be amended, restated,
novated, varied or

                                      40
<PAGE>

supplemented from time to time and shall include any additional and/or
replacement guaranteed investment contract entered into by the Mortgages
Trustee from time to time in accordance with the Transaction Documents;

"Mortgages Trustee Ledgers" means all of the ledgers as are required to be
maintained pursuant to Clause 15 (Ledgers) of the Mortgages Trust Deed;

"Mortgages Trustee Principal Priority of Payments" means the order in which
the Cash Manager will apply the Mortgages Trustee Principal Receipts on each
Distribution Date, as set forth in Clause 11 (Distribution of Principal
Receipts) of the Mortgages Trust Deed;

"Mortgages Trustee Principal Receipts" means, on any Distribution Date, any
Mortgages Trustee Retained Principal Receipts plus the Principal Receipts
received by the Mortgages Trustee in the immediately preceding Trust
Calculation Period which may be distributed, subject to Clause 13
(Overpayments) of the Mortgages Trust Deed, in accordance with Clause 11 of
the Mortgages Trust Deed;

"Mortgages Trustee Priority of Payments" means, as applicable, the Mortgages
Trustee Revenue Priority of Payments or the Mortgages Trustee Principal
Priority of Payments;

"Mortgages Trustee Retained Principal Receipts" means on a Seller Share Event
Distribution Date, the Mortgages Trustee Principal Receipts which are not
distributed to the Seller by the Cash Manager and which are instead deposited
into the Mortgages Trustee GIC Account pursuant to the Mortgages Trust Deed;

"Mortgages Trustee Revenue Priority of Payments" means the order in which the
Cash Manager will apply the Mortgages Trustee Available Revenue Receipts on
each Distribution Date, as set forth in Clause 10 (Distribution of Revenue
Receipts) of the Mortgages Trust Deed;

"Mortgages Trustee Transaction Account" means the account in the name of the
Mortgages Trustee (sort code 30/16/63, account number 27033010) held at the
Account Bank and maintained subject to the terms of the Bank Account
Agreement, or such additional or replacement bank account of the Mortgages
Trustee as may for the time being be in place;

"Mortgages Trustee Transaction Account Mandate" means the resolutions,
instructions and signature authorities relating to the Mortgages Trustee
Transaction Account substantially in the form set out in Schedule 1 to the
Bank Account Agreement;

"New Closing Date" means the date of any issue of New Notes by a New Issuer;

"New Funding Secured Creditor" means any person identified as such in any Deed
of Accession executed pursuant to the Funding Deed of Charge by such person
and the other parties thereto;

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

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

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

"New Mortgage Loans" means Mortgage Loans, other than the Initial Mortgage
Loans, which the

                                      41
<PAGE>

Seller may sell and assign, from time to time, to the Mortgages Trustee after
the Initial Closing Date pursuant to the Mortgage Sale Agreement;

"New Mortgage Portfolio" means any portfolio of Mortgage Loans and their
Related Security which are sold and assigned to the Mortgages Trustee on or
about the relevant Assignment Date, particulars of which are set out in the
Schedule to each New Mortgage Portfolio Notice delivered pursuant to the
Mortgage Sale Agreement but excluding any such Mortgage Loan and its Related
Security which has been redeemed in full on or before the relevant Assignment
Date, and (subject where applicable to the subsisting rights of redemption of
the Borrowers) all right, title, interest and benefit of the Seller in and to:

(a)  all sums of principal, interest (including, for the avoidance of doubt,
     all Accrued Interest, Arrears of Interest and Capitalised Arrears) and
     any other sum due or to become due under or in respect of such Mortgage
     Loans and their Related Security on or after such Closing Date and all
     sums of interest and other sums payable (but not paid before such Closing
     Date) in respect of any period before such Closing Date and including,
     without limitation, the right to demand, sue for, recover and give
     receipts for all such principal, interest or other amounts, the right to
     sue on all covenants and undertakings made or expressed to be made in
     favour of the Seller under the applicable Mortgage and all sums due or to
     become due in respect of any Early Repayment Charge;

(b)  the benefit of all securities for such principal, interest and other sums
     payable (including without limitation any interest of the Seller in any
     Life Policy), the benefit of all Deeds of Consent, MHA Documentation and
     Deeds of Postponement, any Guarantee in respect of such Mortgage Loan or
     any other collateral security for the repayment of the relevant Mortgage
     Loans secured by the Mortgages;

(c)  the right to exercise all the powers of the Seller in relation thereto
     subject to and in accordance with the relevant Mortgage Conditions;

(d)  all the estate and interest in the Mortgaged Properties in relation
     thereto vested in the Seller;

(e)  to the extent they are assignable, each Certificate of Title and
     Valuation Report and any right of action of the Seller against any
     solicitor, valuer or other person in connection with any report,
     valuation, opinion, certificate or other statement of fact or opinion
     given in connection with any Mortgage Loan and its Related Security in
     that portfolio of Mortgage Loans, or any part thereof or affecting the
     decision of the Seller to make or offer to make the relevant Mortgage
     Loan or part thereof;

(f)  the Buildings Policies and Insurance Contracts, in each case so far as
     they relate to such Mortgage Loans comprised in that portfolio of
     Mortgage Loans and their Related Security, including the right to receive
     the proceeds of all claims made or to be made by or on behalf of the
     Seller or to which the Seller is or may become entitled;

(g)  the MIG Policies, so far as they relate to such Mortgage Loans comprised
     in that portfolio of Mortgage Loans and their Related Security, including
     the right to receive of all claims made or to be made by or on behalf of
     the Seller or to which the Seller is or may become entitled;

"New Notes" means the notes issued and/or to be issued by the New Issuers to
investors;

"New Start-Up Loan" means a start-up loan made by a New Start-Up Loan Provider
to Funding

                                      42
<PAGE>

under a New Start-Up Loan Agreement;

"New Start-Up Loan Agreement" means any new start-up loan agreement entered
into from time to time between Funding and a New Start-Up Loan Provider
pursuant to which a New Start-Up Loan is advanced to Funding;

"New Start-Up Loan Provider" means the lender under any New Start-Up Loan
Agreement;

"New Trust Property" means, as the context requires, each New Mortgage
Portfolio from time to time sold and assigned by the Seller to the Mortgages
Trustee or as of any Closing Date the New Mortgage Portfolio sold and assigned
to the Mortgages Trustee on such date or as of any Distribution Date, any and
all New Mortgage Portfolios assigned by the Seller to the Mortgages Trustee
during the immediately preceding Trust Calculation Period;

"New York Business Day" means a day (other than a Saturday or a Sunday or
public holiday) on which banks are generally open in the city of New York;

"Non-Asset Trigger Event" means the occurrence of any of the following events:

(a)  an Insolvency Event occurs in relation to the Seller;

(b)  the role of the Seller as Administrator under the Administration
     Agreement is terminated and a new Administrator is not appointed within
     60 days; or

(c)  on the Distribution Date immediately succeeding a Seller Share Event
     Distribution Date, the Current Seller Share is equal to or less than the
     Minimum Seller Share (determined using the amounts of the Current Seller
     Share and Minimum Seller Share that would exist after making
     distributions of Mortgages Trustee Principal Receipts due on that
     Distribution Date on the basis that the Cash Manager assumes that those
     Mortgages Trustee Principal Receipts are distributed in the manner
     described under the Mortgages Trustee Principal Priority of Payments set
     forth in Clause 11.1 of the Mortgages Trust Deed;

"Non-Cash Re-Draw" means an Authorised Underpayment or a Payment Holiday under
a Flexible Mortgage Loan included in the Mortgages Trust, which will result in
the Seller being required to pay to the Mortgages Trustee an amount equal to
the Unpaid Interest associated with that Authorised Underpayment or Payment
Holiday;

"Non-Cash Re-Draws Sub Ledger" means the sub-ledger of the Re-Draws Ledger,
which will be established by the Cash Manager on the Initial Closing Date in
order to record any Non-Cash Re-Draws made with respect to Flexible Mortgage
Loans;

"Non-Flexible Mortgage Loan" means a Mortgage Loan other than a Flexible
Mortgage Loan;

"Non-Flexible Overpayments Sub Ledger" means the sub-ledger of the
Overpayments Ledger corresponding to Non-Flexible Mortgage Loans, which will
be established by the Cash Manager on the Initial Closing Date in order to
record any Overpayments made with respect to Non-Flexible Mortgage Loans;

"Non-Flexible Underpayments Ledger" means the ledger maintained by the Cash
Manager in the name of the Mortgages Trustee pursuant to the Cash Management
Agreement to record any Underpayments made with respect to Non-Flexible
Mortgage Loans in the Mortgages Trust from time to time;

"Northern Rock Collection Accounts Amounts" means all amounts from time to
time standing to

                                      43
<PAGE>

the credit of the Collection Accounts to the extent that such amounts
represent payments into the Collection Accounts of sums derived or resulting
from mortgage loans originated by Northern Rock which have not been sold to
the Mortgages Trustee pursuant to the Mortgage Sale Agreement;

"Northern Rock" means 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;

"Note Determination Date" means, in relation to the First Issuer, the First
Issuer Note Determination Date and in relation to any New Notes, the
Distribution Date immediately preceding the Payment Date;

"Note Enforcement Notice" means, in relation to the First Issuer, the First
Issuer Note Enforcement Notice and in relation to any New Issuer, a notice
issued by the Note Trustee to such Issuer and the Security Trustee declaring
the Notes issued by such Issuer or any class of such Notes to be due and
repayable pursuant to Conditions of such New Notes;

"Note Event of Default" means, in relation to the First Issuer, a First Issuer
Note Event of Default and in relation to any New Issuer, the occurrence of an
event of default by the relevant Issuer as specified in the relevant
Conditions of the Notes issued by such New Issuer;

"Noteholders" means, in relation to the First Issuer Notes, the Class A
Noteholders, the Class B Noteholders and the Class C Noteholders or any of
them and, in relation to any New Notes, the holders for the time being of such
New Notes;

"Note Principal Payment" means the principal amount redeemable from time to
time on each Note in accordance with the Conditions;

"Notes" means in relation to the First Issuer, the First Issuer Notes and, in
relation to any New Issuer, the New Notes issued by such New Issuer;

"Note Trustee" means The Bank of New York, or such person or persons for the
time being acting as note trustee or trustees under the Trust Deeds relating
to the Notes;

"Offer Conditions" means the terms and conditions applicable to a specified
Mortgage Loan as set out in the relevant offer letter to the Borrower;

"Official List" means the Official List maintained by the UK Listing
Authority;

"Operating Agreements" means the Administration Agreement, the Mortgage Sale
Agreement, the Seller's Power of Attorney and the Mortgages Trust Deed;

"Option Exercise Date" means the date on which the Post-Enforcement Call
Option Holder exercises its option to acquire all of the Notes outstanding as
at such date, together with accrued interest thereon;

"Outstanding Principal Balance" means:

(a)  in relation to any Note and as of any date, means the unpaid principal
     balance of that Note at such date; and

(b)  in relation to any Intercompany Loan and as of any date, means the unpaid
     principal balance of that Intercompany Loan at such date;

"Overpayment" means in respect of any Mortgage Loan, any additional amounts of
Principal

                                      44
<PAGE>

Receipts received in a month above the regular, scheduled Monthly Payment,
paid by the relevant Borrower which (a) is permitted by the terms of such
Mortgage Loan or by agreement with the Borrower and (b) reduces the Current
Balance of such Mortgage Loan;

"Overpayments Ledger" means the ledger of such name maintained by the Cash
Manager in the name of the Mortgages Trustee pursuant to the Cash Management
Agreement to record Overpayments on Mortgage Loans in the Mortgages Trust from
time to time which ledger will be sub-divided into two sub ledgers: (i) the
Non-Flexible Overpayments Sub Ledger corresponding to Overpayments made on
Non-Flexible Mortgage Loans, and (ii) the Flexible Overpayments Sub Ledger
corresponding to Overpayments made on Flexible Mortgage Loans;

"Paying Agent and Agent Bank Agreement" means, in relation to the First
Issuer, the First Issuer Paying Agent and Agent Bank Agreement and, in
relation to any New Issuer, has the meaning specified under the relevant
Issuer Transaction Documents;

"Paying Agents" means in relation to the First Issuer, the Principal Paying
Agent and the US Paying Agent initially appointed as paying agents pursuant to
the First Issuer Paying and Agent Bank Agreement and, in relation to any New
Issuer, the Principal Paying Agent and US Paying Agent appointed pursuant to
the Paying Agent and Agent Bank Agreement relating to that New Issuer or, if
applicable, any successor paying agents;

"Payment Date" means (i) in relation to any Group 1 Issuer, the twentieth day
of July, October, January and April in each year or, if such day is not a
Business Day, the next succeeding Business Day, and (ii) in relation to any
Group 2 Issuer, the twentieth day of March, June, September and December or,
if such day is not a Business Day, the next Succeeding Business Day;

"Payment Holiday" means, in respect of any Flexible Mortgage Loan, a period of
one or more Monthly Payment Dates when the relevant Borrower under such
Mortgage Loan is permitted by the Seller in accordance with the relevant
Mortgage Conditions not to make its regular Monthly Payment;

"Perfection" means the perfection of the assignment and assignation of the
Mortgage Portfolio pursuant to and in accordance with Clause 6 (Perfection of
the Assignment) of the Mortgage Sale Agreement;

"Perfection Date" means the date of any Perfection;

"Perfection Event" means any of the events specified in Clause 6.1 (Perfection
Events) of the Mortgage Sale Agreement;

"Permitted Product Switch" means any variation in the financial terms and
conditions of a Mortgage Loan in which a Borrower exchanges its then-current
Mortgage Loan product for a different mortgage loan product offered by the
Seller or (in limited circumstances) the Administrator from time to time,
provided that such new mortgage loan for which the prior Mortgage Loan is to
be exchanged is a Permitted Replacement Mortgage Loan, and further provided
that no such product switch shall be permitted unless at the date of such
product switch each of the conditions set out in Clause 4.2 (Conditions to
Effecting an Assignment of New Mortgage Loans) of the Mortgage Sale Agreement
is satisfied (save to the extent that conditions (a), (c), (k), (n) and (o) of
such Clause must only be satisfied on the most recent Assignment Date for the
assignment of New Mortgage Loans to the Mortgages Trust);

"Permitted Replacement Mortgage Loan" means a mortgage loan (i) that is
subject to a variable rate of interest, (ii) that has a Maturity Date prior to
January 2039, and (iii) upon which the related

                                      45
<PAGE>

Borrower has made at least one Monthly Payment;

"Person" means a reference to any person, individual, corporation, limited
liability company, partnership, joint venture, association, joint-stock
company, trust, unincorporated organisation, governmental entity or other
entity of similar nature (whether or not having separate legal personality);

"Personal Secured Loan" means a Mortgage Loan for unrestricted purposes
offered to a Borrower who has an existing Mortgage Loan (other than a Personal
Secured Loan) with the Seller, which is secured on the same Mortgaged Property
which secures the Borrower's existing Mortgage Loan. Certain Personal Secured
Loans permit the Borrower to make Further Draws up to the fixed amount of
credit extended under the related Mortgage Conditions at the inception of the
Personal Secured Loan;

"Post-Enforcement Call Option Agreement" means the post-enforcement call
option agreement entered into on or about a Closing Date between the relevant
Issuer, the relevant Post-Enforcement Call Option Holder, the Note Trustee and
the Note Depository;

"Post-Enforcement Call Option Holder" means, in respect to the First Issuer,
GPCH Limited, a company incorporated with limited liability under the laws of
England and Wales, registered number 4128437, or such other person or persons
for the time being acting as post-enforcement call option holder under the
relevant Post-Enforcement Call Option Agreement, and, in relation to any New
Issuer, has the meaning specified under the relevant Issuer Master Definitions
Schedule;

"Potential Intercompany Loan Event of Default" means the occurrence of any
event which with the giving of notice, any relevant certificate, the lapse of
time or fulfilment of any other condition (or any combination of the
foregoing) would become an Intercompany Loan Event of Default;

"Potential Note Event of Default" means any condition, event or act which with
the lapse of time and/or the giving of any notice and/or determination of
materiality and/or fulfilment of any similar condition would constitute a Note
Event of Default;

"Previous Intercompany Loan" means a loan made by any Previous Issuer to
Funding on the Closing Date relating to such Previous Issuer under the
relevant Previous Intercompany Loan Agreement;

"Previous Intercompany Loan Agreement" means an intercompany loan agreement
entered into on the relevant Closing Date between, among others, Funding and a
Previous Issuer;

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

"Previous Issuer Notes" means the notes issued by any Previous Issuer;

"Previous Start-up Loan" means the start-up loan that any Previous Start-up
Loan Provider made available to Funding on the Closing Date relating to such
Previous Issuer pursuant to the relevant Previous Start-up Loan Agreement;

"Previous Start-up Loan Agreement" means a start-up loan agreement entered
into on the relevant Closing Date as amended from time to time between
Funding, the Previous Start-up Loan Provider and the Security Trustee;

"Previous Start-up Loan Provider" means Northern Rock in its capacity as
start-up loan provider

                                      46
<PAGE>

under the relevant Previous Start-up Loan Agreement;

"Principal Deficiency Ledger" means, in relation to any Issuer, the ledger of
such name maintained by the Issuer Cash Manager pursuant to the Issuer Cash
Management Agreement, comprising such sub-ledgers as relate to the classes of
Notes of differing ratings issued by such Issuer as contemplated in the
relevant Issuer Cash Management Agreement;

"Principal Distribution" means, in relation to the Mortgages Trust, any
distribution by the Mortgages Trustee to any Beneficiary pursuant to Clause 11
(Distribution of Principal Receipts) or Clause 6.3 (Special Distribution) of
the Mortgages Trust Deed;

"Principal Directions" means, with respect to the Security Trustee, the
directions of the Note Trustee(s) for the Holders of the highest ranking class
of Notes outstanding (meaning the Class A Notes for so long as there are Class
A Notes outstanding and thereafter, the Class B Notes so long as there are no
Class A Notes outstanding and thereafter, the Class C Notes so long as there
are neither Class A Notes nor Class B Notes outstanding and thereafter, the
Class D Notes for so long as there are no Class A Notes, Class B Notes nor
Class C Notes outstanding;

"Principal Ledger" means the ledger maintained by the Cash Manager in the name
of the Mortgages Trustee pursuant to the Cash Management Agreement to record
any Mortgages Trustee Retained Principal Receipts plus the Principal Receipts
on the Mortgage Loans and distributions of such Principal Receipts to the
Seller and Funding on each Distribution Date;

"Principal Receipts" means, in relation to the Mortgages Trustee, any payment
in respect of principal received in respect of any Mortgage Loan, whether as
all or part of a Monthly Payment in respect of such Mortgage Loan, on
redemption (including partial redemption) of such Mortgage Loan, on
enforcement or on the disposal of such Mortgage Loan or otherwise (including
payments pursuant to any Insurance Policy)(and which may include the amount of
any Overpayment in respect of any Non-Flexible Mortgage Loan, but only to the
extent permitted by Clause 13.1 (Non-Flexible Mortgage Loans) of the Mortgages
Trust Deed, and which also may include the amount of any Further Contribution
made by Funding from time to time) and in relation to any distributions of
Principal Receipts which have been or are to be made on a Distribution Date,
Principal Receipts shall mean Mortgages Trustee Principal Receipts;

"Proceedings" means any suit, action or proceedings arising out of or in
connection with any of the Transaction Documents;

"Product Switch" means a variation to the financial terms and conditions of
any Mortgage Loan but excluding:

(a)  any variation in the financial terms and conditions of a Mortgage Loan
     involving a Permitted Product Switch;

(b)  variation agreed with a Borrower to control or manage arrears on a
     Mortgage Loan;

(c)  variation in the maturity date of a Mortgage Loan unless, while the First
     Issuer Intercompany Loan is outstanding, it is extended beyond January
     2039;

(d)  variation imposed by statute;

(e)  variation of the rate of interest payable in respect of Mortgage Loan
     where that rate is offered to the Borrowers of more than 10 per cent. by
     Current Balance of Mortgage Loans comprised

                                      47
<PAGE>

     in the Trust Property in any Interest Period;

(f)  a change between interest-only and repayment Mortgage Loans;

(g)  a transfer of equity; and/or

(h)  a release of a party to a Mortgage Loan or a release of part of the land
     subject to the Mortgage;

"Properties in Possession Policy" means the properties in possession insurance
policy identified in paragraph 2(e) of Schedule 4 (Insurance Contracts) to the
Mortgage Sale Agreement and any endorsements or extensions thereto as issued
from time to time and any additional, replacement or substitute properties in
possession insurance policy which relates to Mortgage Loans in the Mortgages
Trust from time to time;

"PS/FA/PSL Event" means the occurrence of either (i) confirmation from
Northern Rock that it will purchase the relevant Mortgage Loans which are
subject to any Further Advances or Product Switches (other than Re-Fixed
Mortgage Loans) in accordance with Clause 8.5 (Purchase of Product Switches
and Further Advances and purchases related to Personal Secured Loans) under
the Mortgage Sale Agreement, (ii) any Mortgage Loan becoming a Re-Fixed
Mortgage Loan, or (iii) Northern Rock making a Personal Secured Loan to the
Borrower of a Mortgage Loan;

"Purchase Price" means:

(a)  in respect of the Initial Mortgage Portfolio, the amount payable therefor
     by the Mortgages Trustee pursuant to Clause 3.2 (Purchase Price) of the
     Mortgage Sale Agreement; and

(b)  in respect of each New Mortgage Portfolio, the amount payable therefor by
     the Mortgages Trustee pursuant to Clause 4.5 (Purchase Price) of the
     Mortgage Sale Agreement;

"Rating Agencies" means S&P, Moody's and Fitch, and "Rating Agency" means any
of them;

"Receiver" means, in relation to the Funding Deed of Charge, any person or
persons appointed (and any additional person or persons appointed or
substituted) as an administrative receiver, receiver, manager, or receiver and
manager of the Funding Charged Property by the Security Trustee pursuant the
Funding Deed of Charge and in relation to any Issuer Deed of Charge, any
person or persons appointed (and any additional person or persons appointed or
substituted) pursuant thereto by the Note Trustee as an administrative
receiver, receiver, manager, or receiver and manager of the property charged
or secured under such Issuer Deed of Charge;

"Re-Draw" means either a Cash Re-Draw or a Non-Cash Re-Draw;

"Re-Draws Ledger" means the ledger maintained by the Cash Manager in the name
of the Mortgages Trustee pursuant to the Cash Management Agreement to record
Re-Draws on Flexible Mortgage Loans in the Mortgages Trust from time to time
which ledger shall be sub-divided into two sub ledgers: (i) the Non-Cash
Re-Draws Sub Ledger corresponding to Non-Cash Re-Draws and (ii) the Cash
Re-Draws Sub Ledger corresponding to Cash Re-Draws;

"Re-Fixed Mortgage Loan" means, as at any given date, a Mortgage Loan which on
or before such date had been a Fixed Rate Mortgage Loan in respect of which
the fixed period by reference to which the relevant fixed interest was charged
had come to an end, but as at or before that such date, the interest charged
under such Mortgage Loan was again fixed for a further fixed period by the
Seller or the Administrator as the case may be (following an election by the
Borrower) in accordance with the

                                      48
<PAGE>

original terms of the Fixed Rate Mortgage Loan;

"Registered Land" means land in England or Wales, title to which is registered
at H.M. Land Registry;

"Registered Transfer" means, in relation to Registered Land, a deed of
transfer of a Mortgage or Mortgages over registered land in the form referred
to in paragraph (a) of Clause 6.3 (Transfer Documents) of the Mortgage Sale
Agreement with such modifications as may be permitted from time to time in
accordance with such Clause;

"Registers of Scotland" means the Land Register of Scotland and/or the General
Register of Sasines;

"Reg S" means Regulation S under the United States Securities Act of 1933, as
amended;

"Reg S Global Note Certificates" or "Regulation S Global Note Certificates"
means the Global Note Certificates in registered form representing the Reg S
Notes;

"Reg S Individual Note Certificates" or "Regulation S Individual Note
Certificates" means the Individual Note Certificates in registered form
representing the Reg S Notes;

"Reg S Notes" means generally all Notes which are issued pursuant to Reg S and
in relation to an Issuer means the Notes issued or to be issued by that Issuer
pursuant to Reg S;

"Regulations" means as the context may require either (i) the Unfair Terms in
Consumer Contracts Regulations 1999 and/or, as applicable, the Unfair Terms in
Consumer Contracts Regulations 1994 or (ii) the Regulations set out in
Schedule 2 to the First Issuer Paying Agent and Agent Bank Agreement;

"Related Security" means, in relation to a Mortgage Loan, the security for the
repayment of such Mortgage Loan including the relevant Mortgage and all other
documents, matters and things related thereto acquired and referred to as part
of the Initial Mortgage Portfolio or, as the case may be, the New Mortgage
Portfolio, sold to the Mortgages Trustee pursuant to the Mortgage Sale
Agreement and which constitute all or part of the security for the payment of
all sums due in respect of such Mortgage Loan, including for the avoidance of
doubt, guarantees, MIG Policies and assignments and charges over Life
Policies;

"Relevant Distribution" has the meaning given to it in Clause 4.2
(Consideration) of the Mortgages Trust Deed;

"Relevant Deposit Amount" means the sum of the following:

(a)  either:

     (i)  prior to the Step-Up date in respect of any Notes (pursuant to the
          terms and conditions thereof) or if the Step-Up Date has occurred in
          respect of any Notes (pursuant to the terms and conditions thereof)
          and the option to redeem any Notes has been exercised by the
          applicable Issuer, an amount equal to:

          [the Funding Share of the Trust Property (as most recently
          calculated)/the Funding share of the Trust Property on the relevant
          Closing Date)] x [(the outstanding balance in the Funding Reserve
          Fund plus the outstanding balance in the Issuer Reserve Fund (each
          as most recently calculated)]; or

     (ii) if an Issuer does not exercise its option to redeem its notes on the
          relevant Step-Up Date pursuant to the terms and conditions thereof,
          an amount equal to:

          [the Funding Share of the Trust Property (as most recently
          calculated)/the Funding Share of the Trust property on the relevant
          Closing Date)] x [the outstanding balance

                                      49
<PAGE>

          in the Funding Reserve Fund plus the outstanding balance in the
          Issuer Reserve Fund (each as most recently calculated)] x 2;

(b)  any amounts standing to the credit of the Funding GIC Account which will
     be applied on the next following payment date to pay amounts due under
     any Intercompany Loan which in turn will result in any Notes having
     ratings of "AAA", "AA", or "A-1+" from Standard & Poor's to be redeemed
     in whole or in part;

(c)  any amounts standing to the credit of the Mortgages Trustee GIC Account
     which will be distributed to Funding on the next following Distribution
     Date and which will be applied by Funding on the next following Payment
     Date to pay amounts due under any Intercompany Loan which in turn will
     result in any Notes having ratings of "AAA", "AA", or "A-1+" from
     Standard & Poor's to be redeemed in whole or in part; and

(d)  any other amounts standing to the credit of accounts maintained by the
     Mortgages Trustee. Funding or any Issuer with a bank and which would
     otherwise be required by Standard & Poor's to be rated "A-1+";

less any amounts invested in Authorized Investments or maintained in accounts at
a bank rated at least "A-1+" by Standard & Poor's;

"Repayment Mortgage Loan" means a Mortgage Loan in respect of which the
Borrower is under an obligation to the mortgagee to make monthly payments of
principal so that the whole principal (in addition to interest) is repaid by
the stated maturity date for that Mortgage Loan;

"Representations and Warranties" means the representations and warranties set
out in Schedule 1 (Representations and Warranties) to the Mortgage Sale
Agreement;

"Revenue Ledger" means the ledger maintained by the Cash Manager in the name
of the Mortgages Trustee pursuant to the Cash Management Agreement to record
Revenue Receipts received by the Mortgages Trustee and the payment of the same
on each Distribution Date in accordance with the terms of the Mortgages Trust
Deed;

"Revenue Receipts" means, in relation to the Mortgages Trustee, any payment
received in respect of any Mortgage Loan, whether as all or part of a Monthly
Payment in respect of such Mortgage Loan, on redemption (including partial
redemption) of such Mortgage Loan, on enforcement of such Mortgage Loan
(including the proceeds of sale thereof), on the disposal of such Mortgage
Loan or otherwise (including payments pursuant to any Insurance Policy) which
in any such case is not a Principal Receipt in respect of such Mortgage Loan;

"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 the period during which the
seller's standard security referred to in section 72 of that Act remains in
effect has expired);

"Scottish Mortgage" means, in respect of any Mortgage Loan in the Mortgage
Portfolio, a Mortgage secured over a Scottish Property;

"Scottish Mortgage Loan" means each Mortgage Loan secured by a Scottish
Mortgage;

"Scottish Property" means a Mortgaged Property situated in Scotland;

                                      50
<PAGE>

"Scottish Transfer" means an assignation of a Scottish Mortgage or Mortgages
in the relevant form referred to in paragraphs (c) and (d) of Clause 6.3
(Transfer Documents) of the Mortgage Sale Agreement with such modifications as
may be permitted from time to time in accordance with such Clause;

"Scottish Trust" means, collectively, the trusts declared and created in terms
of each Scottish Trust Deed;

"Scottish Trust Deed" means a declaration of trust substantially in the form
set out in Schedule 11 to the Mortgage Sale Agreement declared by the Seller
in favour of the Mortgages Trustee over its whole right, title, benefit and
interest in and to the Scottish Trust Property specified therein;

"Scottish Trust Property" has the meaning given to it in each Scottish Trust
Deed and means, collectively, the whole trust property forming the subjects of
each such Scottish Trust Deed;

"S&P" and "Standard & Poor's" means Standard & Poor's Rating Services, a
division of The McGraw-Hill Companies, Inc., and includes any successor to its
rating business;

"SEC" means the United States Securities and Exchange Commission;

"Second Issuer" means Granite Mortgages 01-2 plc;

"Second Issuer Liquidity Required Amount" means an amount as of any Payment
Date equal to the excess, if any, of 3% of the aggregate outstanding balance
of the Notes on that Payment Date over amounts standing to the credit of the
Issuer Reserve Fund on that Payment Date;

"Second Priority Funding Deed of Charge" means the deed of charge entered into
on or about 28 January 2004 between Funding and the Security Trustee as may be
amended, restated, novated, varied or supplemented from time to time;

"Securities Act" means the United States Securities Act of 1933, as amended;

"Security Documents" means the any Issuer Deed of Charge, the Funding Deed of
Charge, and each Deed of Accession entered into pursuant to the Funding Deed
of Charge, the Second Priority Funding Deed of Charge and any other security
document entered into pursuant to any of the foregoing;

"Security Interest" or "Encumbrance" means any mortgage or sub mortgage,
standard security, charge or sub charge (whether legal or equitable),
encumbrance, pledge, lien, hypothecation, assignment or assignation by way of
security or other security interest or title retention arrangement and any
agreement, trust or arrangement having substantially the same economic or
financial effect as any of the foregoing (other than a lien arising in the
ordinary course of business or by operation of law);

"Security Power of Attorney for Funding" means the power of attorney granted
by Funding in favour of the Security Trustee on the Initial Closing Date
pursuant to the Funding Deed of Charge;

"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 Deed of Charge;

"Seller" means Northern Rock plc;

"Seller Share Event" means the event which will occur if, on a Distribution
Date, (i) the result of the calculation of the Current Seller Share for such
Distribution Date would be equal to or less than the Minimum Seller Share for
such Distribution Date (determined using the amounts of the Current Seller

                                      51
<PAGE>

Share and Minimum Seller Share that would exist after making the distributions
of Mortgages Trustee Principal Receipts due in that Distribution Date on the
basis that the Cash Manager assumes that those Mortgages Trustee Principal
Receipts are distributed in the manner described under the Mortgages Trustee
Principal Priority of Payments set forth in Clause 11.1 of the Mortgages Trust
Deed, and (ii) a Seller Share Event has not occurred on the immediately
preceding Distribution Date;

"Seller Share Distribution Date" means a Distribution date on which a Seller
Share Event occurs;

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

"Seller Share Ledger" means a ledger which shall record the Seller Share of
the Trust Property and the Seller Share Percentage;

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

"Seller's Policy" means the originating, lending and underwriting,
administration, arrears and enforcement policies and procedures which are
applied from time to time by the Seller to mortgage loans and the security for
their repayment which are beneficially owned solely by the Seller and which
may be amended by the Seller from time to time;

"Seller's Power of Attorney" means the power of attorney granted by the Seller
in favour of Funding, the Mortgages Trustee and the Security Trustee on the
Initial Closing Date, substantially in the form set out in Schedule 10 (Power
of Attorney in favour of the Mortgages Trustee, Funding and the Security
Trustee) to the Mortgage Sale Agreement;

"Series" in relation to any Notes issued by any Issuer has the meaning given
to it in the relevant Issuer Master Definitions Schedule;

"Services" has the meaning set out in Clause 3.1 (General) of the
Administration Agreement;

"Share Trust Deed" means the share trust deed dated 23 January 2001 between
the Share Trustee and Holdings as has been and may be amended, restated,
novated, varied or supplemented from time to time;

"Share Trustee" means The Law Debenture Intermediary Corporation P.L.C. as
share trustee under the Share Trust Deed;

"Shortfall" or "Interest Rate Shortfall" means, as of any Payment Date and in
respect of Funding, a deficiency of Funding Available Revenue Receipts over
the amounts due by Funding under the Funding Pre-Enforcement Revenue Priority
of Payments on such Payment Date, and, as of any Payment Date and in respect
of any Issuer, the deficiency of Issuer Allocable Revenue Receipts over the
amounts due by such Issuer under the relevant Issuer Pre-Enforcement Revenue
Priority of Payments, as the context requires;

"Special Distribution" has the meaning given to it in Clause 6.3 (Special
Distribution) of the Mortgages Trust Deed;

"Special Repayment Notes" means, in relation to the Second Issuer, the
(GBP)10,000,000 Series 2 Class D Floating Rate Notes issued by the Second
Issuer and, in relation to any other Issuer, means any Series and/or class of
Notes issued by such Issuer that are either:

(a)  interest only Notes; or

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<PAGE>

(b)  Notes, the Outstanding Principal Balance of which is to be repaid solely
     from the Issuer Available Revenue Receipts,

and that are designated as Special Repayment Notes in the Issuer Master
Definitions Schedule relating to such Issuer;

"Specified Date" means the date on which the United Kingdom participates in
the third stage of European economic and monetary union pursuant to the Treaty
establishing the European Community or otherwise participates in European
economic and monetary union in a manner with an effect similar to such third
stage;

"Standard Documentation" or "Standard Mortgage Documentation" means:

(a)  in relation to the First Issuer the standard documentation referred to in
     Schedule 12 (Standard Documentation) to the Mortgage Sale Agreement as at
     26 March 2001,

(b)  in relation to the Second Issuer, the standard documentation referred to
     in Schedule 12 (Standard Documentation) to the Mortgage Sale Agreement as
     at 28 September 2001, and

(c)  in relation to any other Issuer, the standard documentation referred to
     in Schedule 1 (Standard Documentation) to the relevant Issuer Master
     Definitions Schedule

or, in each case, any update or replacement therefor as the Seller may from
time to time introduce acting in accordance with the standards of a
reasonable, prudent mortgage lender;

"Standard Variable Rate" or "SVR" means, as applicable, the Northern Rock
standard variable mortgage base rate and/or the standard variable mortgage
base rate applicable to Mortgage Loans within the Mortgages Trust in
accordance with the Mortgage Conditions;

"Stand-by Account Bank" means the bank at which the Stand-by Mortgages Trustee
GIC Account and the Stand-by Funding GIC Account is maintained from time to
time being, Lloyds TSB Bank plc, Financial Markets Division, 25 Monument
Street, London EC3R 8BQ;

"Stand-by Account Bank Notice" means a written notice served on the Stand-by
Account Bank by the Cash Manager, Funding or the Mortgages Trustee, as
applicable, pursuant to the provisions of the Bank Account Agreement;

"Stand-by Bank Account Agreement" means the agreement entered into on or about
26 May 2004 between the Stand-by Account Bank, the Stand-by Funding GIC
Provider, the Stand-by Mortgages Trustee GIC Provider, the Cash Manager and
the Security Trustee as may be amended, restated, varied or supplemented from
time to time and shall include any additional and/or replacement stand-by bank
account agreement entered into in accordance with the Transaction Documents;

"Stand-by Funding GIC Account" means the account in the name of Funding held
with the Stand-by Bank Account established pursuant to and on the terms of the
Stand-by Funding Guaranteed Investment Contract and the Stand-by Bank Account
Agreement.

"Stand-by Funding GIC Provider" means, Lloyds TSB Bank plc acting through its
office at Financial Market Division, 25 Monument Street, London or such other
person or persons who are for the time being the GIC provider to Funding under
the Stand-by Funding Guaranteed Investment Contract.

"Stand-by Funding Guaranteed Investment Contract" means the guaranteed
investment contract entered into on or about 26 May 2004 between Funding, the
Stand-by Funding GIC Provider, the

                                      53
<PAGE>

Cash Manager and the Security Trustee under which the Stand-by GIC Provider
agrees to provide the Stand-by Funding GIC Account and to pay to Funding a
guaranteed rate of interest on the balance from time to time if the
appointment of Northern Rock as Funding GIC Provider under the Funding
Guaranteed Investment Contract is terminated, as may be amended, restated,
varied or supplemented from time to time and shall include any additional or
replacement stand-by guaranteed investment contract entered into by Funding in
accordance with the Transaction Documents;

"Stand-by Mortgages Trustee GIC Account" means the account in the name of
Mortgages Trustee held with the Stand-by Bank Account established pursuant to
and on the terms of the Stand-by Mortgages Trustee Guaranteed Investment
Contract and the Stand-by Bank Account Agreement.

"Stand-by Mortgages Trustee GIC Provider" means Lloyds TSB Bank plc, Financial
Markets Division, 25 Monument Street, London EC3R 8BQ or such other person or
persons who are for the time being GIC Provider to the Mortgages Trustee under
the Stand-by Mortgages Trustee Guaranteed Investment Contract;

"Stand-by Mortgages Trustee Guaranteed Investment Contract" means the
guaranteed investment contract entered into on or about 26 May 2004 between
Mortgages Trustee, the Stand-by GIC Provider, the Cash Manager and the
Security Trustee under which the Stand-by GIC Provider agrees to provide the
Stand-by Mortgages Trustee GIC Account and to pay to the Mortgages Trustee a
guaranteed rate of interest on the balance from time to time if the
appointment of Northern Rock as Mortgages Trustee GIC Provider under the
Mortgages Trustee Guaranteed Investment Contract is terminated, as may be
amended, restated, varied or supplemented from time to time and shall include
any additional or replacement stand-by guaranteed investment contract entered
into by the Mortgages Trustee in accordance with the Transaction Documents;

"Start-up Loan" means the start-up loan that the Start-up Loan Provider shall
make available to Funding pursuant to the Start-up Loan Agreement;

"Start-up Loan Agreement" means the agreement entered into on or about the
Initial Closing Date between Funding, the Start-up Loan Provider and the
Security Trustee relating to the provision of the Start-up Loan to Funding as
may be amended, restated, novated, varied or supplemented from time to time
and shall include any additional and/or replacement start-up loan agreement
entered into by such parties in accordance with the Transaction Documents;

"Start-up Loan Provider" means Northern Rock, in its capacity as provider of
the Start-up Loan and/or such other person or persons for the time being the
lender under the Start-up Loan Agreement;

"Step-Up Date" means the Payment Date in respect of an Issuer on which the
interest rate on the 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;

"Subsidiary" means (a) a subsidiary as defined in Section 736 of the Companies
Act 1985 and (b) unless the context requires otherwise, a subsidiary
undertaking within the meaning of Section 258 of the Companies Act 1985;

"Subordinated Principal Test" means:

(a)  in respect of the First Issuer Notes, the test which is satisfied (1) on
     any Payment Date occurring on or after the fourth anniversary of the
     Initial Closing Date; and (2) on any

                                      54
<PAGE>

     Payment Date on which (a) the percentage equal to the aggregate Principal
     Amount Outstanding of the Class B Notes and the Class C Notes as at that
     Payment Date over the aggregate Principal Amount Outstanding of the First
     Issuer Notes as at that Payment Date is greater than (b) the product of
     (i) 2 and (ii) the percentage equal to the aggregate Principal Amount
     Outstanding of the Class B Notes and the Class C Notes as at the Initial
     Closing Date over the aggregate Principal Amount Outstanding of the First
     Issuer Notes as at the Initial Closing Date; or

(b)  in respect of any New Notes issued by any New Issuer, has the meaning
     given to it under the relevant Issuer Transaction Documents and as
     defined in the Issuer Master Definitions Schedule relating to that New
     Issuer;

"Swap Agreements" means, for any Issuer, any of the Basis Rate Swap
Agreements, any of the Currency Swap Agreements, any Interest Rate Swap
Agreement or any other ISDA Master Agreement, Schedule and Confirmation
thereto entered into among such Issuer, the relevant Swap Provider and the
Note Trustee, as may be amended, restated, novated, varied or supplemented
from time to time, and shall include any additional and/or replacement swap
agreement entered into by such Issuer from time to time in connection with the
Notes issued by such Issuer

"Swap Provider" means any of the Currency Swap Provider and/or the Basis Rate
Swap Provider and/or the Interest Rate Swap Provider, as the context requires,
or any other swap provider appointed from time to time in accordance with the
Transaction Documents or relevant Issuer Transaction Documents;

"TARGET Business Day" means a day on which the Trans-European Automated
Real-time Gross settlement Express (TARGET) system is open;

"Taxes" means all present and future taxes, levies, imposts, duties (other
than stamp duty), fees, deductions, withholdings or charges of any nature
whatsoever and wheresoever imposed, including, without limitation, value added
tax or other tax in respect of added value and any franchise, transfer, sales,
gross receipts, use, business, occupation, excise, personal property, real
property or other tax imposed by any national, local or supranational taxing
or fiscal authority or agency together with any penalties, fines or interest
thereon and "Tax" and "Taxation" shall be construed accordingly;

"Terms and Conditions" has the same meaning as "Conditions";

"Third Party Amounts" means:

(a)  payments of insurance premiums, if any, due to the Seller in respect of
     any Insurance Policy arranged by the Seller and/or the MIG provider to
     the extent not paid or payable by the Seller (or to the extent such
     insurance premiums have been paid by the Seller in respect of any Further
     Advance which is not repurchased by the Seller to reimburse the Seller);

(b)  amounts under an unpaid Direct Debit which are repaid by the
     Administrator to the bank making such payment if such bank is unable to
     recoup that amount itself from the relevant customer's account;

(c)  other charges the benefit of which have been re-assigned to the Seller
     (excluding Early Repayment Charges); and/or

(d)  recoveries in respect of amounts deducted from Mortgage Loans as
     described in paragraphs (a) through (e) of Clause 8.5 (Adjustments to
     Trust Property) (inclusive) of the Mortgages

                                      55
<PAGE>

     Trust Deed;

"Title Deeds" means, in relation to each Mortgage Loan and its Related
Security and the Mortgaged Property relating thereto, all conveyancing deeds
and documents which make up the title to the Mortgaged Property and the
security for the Mortgage Loan and all searches and enquiries undertaken in
connection with the grant by the Borrower of the related Mortgage including,
in the case of Registered Land, the relevant Charge Certificate;

"Together Connections Benefit" means the amount by which:

(a)  the interest that would be payable on the Combined Debit Balance at the
     Connection Interest Rate exceeds:

(b)  the interest at the Connection Interest Rate that would be payable on the
     amount by which the Combined Debit Balance exceeds the Combined Credit
     Balance;

"Together Connection Conditions" means the Mortgage Conditions of the Seller
identified as Together Connection Conditions;

"Together Connections Mortgage Loans" means a type of Flexible Mortgage Loan
which has the same basic features as a Together Mortgage Loan, but also allows
the Borrower to link the Mortgage Loan with certain accounts that are held
with the Seller, the balance amounts of which, pursuant to the Together
Connection Conditions, are required to be included in the calculation of the
Combined Credit Balance;

"Together Mortgage Loan" means a type of Flexible Mortgage Loan which allows a
Borrower to obtain an additional unsecured drawdown loan and, in some cases, a
credit card;

"Total Property" means at any time the aggregate amount standing to the credit
of the Collection Accounts and held by Northern Rock on trust for the
Mortgages Trustee and itself, subject to and in accordance with the Collection
Bank Agreement;

"Transaction Document" means any of the following documents:

(a)  the Subscription Agreement;

(b)  the Underwriting Agreement;

(c)  the First Issuer Intercompany Loan Agreement;

(d)  the Mortgages Trust Deed;

(e)  the Mortgage Sale Agreement;

(f)  the First Issuer Deed of Charge;

(g)  the Funding Deed of Charge;

(h)  the Basis Rate Swap Agreement;

(i)  each Currency Swap Agreement;

(j)  the Depository Agreement;

(k)  the First Issuer Trust Deed;

(l)  the First Issuer Paying Agent and Agent Bank Agreement;

                                      56
<PAGE>

(m)  the Administration Agreement;

(n)  the Cash Management Agreement;

(o)  the First Issuer Cash Management Agreement;

(p)  the Funding Guaranteed Investment Contract;

(q)  the Funding (First Issuer) Guaranteed Investment Contract;

(r)  the Mortgages Trustee Guaranteed Investment Contract;

(s)  the Post-Enforcement Call Option Agreement;

(t)  the Bank Account Agreement;

(u)  the Funding (First Issuer) Bank Account Agreement;

(v)  the First Issuer Bank Account Agreement;

(w)  the Collection Bank Agreement;

(x)  the Start-Up Loan Agreement;

(y)  the Loyalty Discount Deed;

(z)  the First Issuer Corporate Services Agreement;

(aa) the Share Trust Deed;

(bb) each Corporate Services Agreement;

(cc) the Second Priority Funding Deed of Charge;

(dd) the Stand-by Bank Account Agreement;

(ee) the Stand-by Funding Guaranteed Investment Contract; and

(ff) the Stand-by Mortgages Trustee Guaranteed Investment Contract.

"Transaction" means the transaction contemplated by the Transaction Documents;

"Trigger Event" means any of an Asset Trigger Event or a Non-Asset Trigger
Event, as the case may be;

"Trust Calculation Period" means the period from (and including) the first
date of each calendar month (or in the case of the first such Trust
Calculation Period, the Initial Closing Date) to (and including) the last day
of the same calendar month;

"Trust Corporation" means a corporation entitled by rules made under the
Public Trustee Act 1906, or entitled pursuant to any comparable legislation
applicable to a trustee in any jurisdiction, to carry out the function of a
custodian trustee;

"Trust Determination Date" means the first day (or, if not a London Business
Day, the next succeeding London Business Day) of each calendar month;

"Trust Indenture Act" means the United States Trust Indenture Act of 1939, as
amended;

"Trust Property" means:

(a)  the Initial Trust Property;

                                      57
<PAGE>

(b)  the Closing Trust Property (excluding any Mortgage Loans that have been
     repurchased by the Seller pursuant to the Mortgage Sale Agreement and any
     Early Repayment Charge Receipts that have been paid to the Seller
     pursuant to the Mortgage Sale Agreement);

(c)  any New Trust Property (excluding any Mortgage Loans that have been
     repurchased by the Seller pursuant to the Mortgage Sale Agreement and any
     Early Repayment Charge Receipts that have been paid to the Seller
     pursuant to the Mortgage Sale Agreement);

(d)  any Scottish Trust Property;

(e)  any Contribution made from time to time to the Mortgages Trustee by any
     Beneficiary until it has been applied by the Mortgages Trustee in
     accordance with the Mortgages Trust Deed;

(f)  any Re-Draw made under a Flexible Mortgage Loan which forms part of the
     Trust Property;

(g)  any Further Draw made under a Personal Secured Loan which forms part of
     the Trust Property;

(h)  any Further Advances made by the Seller to existing Borrowers which are
     assigned to the Trust in accordance with the Mortgage Sale Agreement;

(i)  amounts on deposit (and interest earned on such amounts) from time to
     time in the Mortgages Trustee Bank Accounts;

(j)  any Permitted Replacement Mortgage Loan and its Related Security
     (excluding any Early Repayment Charge Receipts that have been paid to the
     Seller pursuant to the Mortgage Sale Agreement) relating to a Permitted
     Product Switch;

(k)  the proceeds of sale of any Mortgage Loan and its Related Security
     forming part of the Trust Property;

(l)  all other property which shall form part of the Trust Property pursuant
     to Clause 2 (Creation of Mortgages Trust) of the Mortgages Trust Deed;

     less

(1)  any actual Losses in relation to the Mortgage Loans and any actual
     reductions occurring in respect of the Mortgage Loans as described in
     Clause 8.5 (Adjustments to Trust Property) of the Mortgages Trust Deed;
     and

(2)  distributions of principal made from time to time to the Beneficiaries of
     the Mortgages Trust.

"Trust Property Calculation Adjustments" has the meaning set out in the
Mortgages Trust Deed;

"Trustee Acts" means the Trustee Act 1925 and the Trustee Act 2000;

"UK Account Bank" means Lloyds TSB Bank plc, City Office, Bailey Drive,
Gillingham Business Park, Kent ME8 0LS;

"UK Listing Authority" means at any time the Financial Services Authority in
its capacity as competent authority for the purposes of Part VI of the
Financial Services and Markets Act 2000 or such other Person which at that
time performs an analogous role in relation to the regulation of financial
markets and the issue of public debt securities in the United Kingdom;

"Unauthorised Underpayment" means a Borrower Underpayment in respect of a
Mortgage Loan which is not funded by, or exceeds the amount of any,
Overpayments previously made by the

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Borrower in respect of such Mortgage Loan or is otherwise not permitted by the
Seller in accordance with the relevant Mortgage Conditions;

"Underpayment" means any Authorised Underpayment or Unauthorised Underpayment;

"United Kingdom" means the United Kingdom of Great Britain and Northern
Ireland;

"United States" means the United States of America;

"Unpaid Interest" means, in relation to any Non-Cash Re-Draw of any Flexible
Mortgage Loan, the interest which would, but for such Non-Cash Re-Draw, have
been payable in respect of that Mortgage Loan on the relevant Monthly Payment
Date for such Mortgage Loan;

"Unpaid Interest Amount" means the amount of the Unpaid Interest in relation
to any Non-Cash Re-Draw on any Flexible Mortgage Loan;

"Unregistered Land" means land in England or Wales, title to which is not
registered at H.M. Land Registry;

"Unregistered Transfer" means, in relation to Unregistered Land, a deed of
transfer of a Mortgage or Mortgages in the form referred to in paragraph (b)
of Clause 6.3 of the Mortgage Sale Agreement with such modifications as may be
permitted from time to time in accordance with such Clause;

"US Global Note Certificates" or "US Global Note Certificate" means the Global
Note Certificates in registered form representing the US Notes;

"US Individual Note Certificates" or "US Individual Note Certificate" means
the Individual Note Certificates in registered form representing the US Notes;

"US Notes" means generally the Notes which are not Reg S Notes and in relation
to an Issuer the Notes issued by that Issuer which are not Reg S Notes;

"Valuation Report" means the valuation report or reports for mortgage
purposes, in the form of the pro-forma contained in the Standard
Documentation, obtained by the Seller from a Valuer in respect of each
Mortgaged Property or a valuation report in respect of a valuation made using
a methodology which would be acceptable to a reasonable prudent mortgage
lender;

"Valuer" means an Associate or Fellow of the Royal Institution of Chartered
Surveyors or the Incorporated Society of Valuers and Auctioneers who was at
the relevant times either a member of a firm which was on the list of Valuers
approved by or on behalf of the Seller from time to time or an Associate or
Fellow of the Royal Institute of Chartered Surveyors or the Incorporated
Society of Valuers and Auctioneers employed in-house by the Seller acting for
the Seller in respect of the valuation of a Mortgaged Property;

"WAFF" means the weighted average repossession frequency in respect of the
Mortgage Portfolio; and

"WALS" means the weighted average loss severity in respect of the Mortgage
Portfolio.

2.   Interpretation and Construction

Any reference in this Master Definitions Schedule or any Transaction Document
to:

"agreed form" means, in relation to any document, the draft of that document
the form of which has been agreed between the parties thereto (or if such
document is delivered pursuant to another Transaction Document, between the
parties to such Transaction Document) and initialled on their

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behalf for the purpose of identification;

the "assets" of any person shall be construed as a reference to the whole or
any part of its business, undertakings, property, intellectual property,
shares, securities, debts, accounts, revenues (including any right to receive
revenues), goodwill, shareholdings and uncalled capital including premium
whether now or hereafter acquired and any other assets whatsoever;

the "assignment" of any Mortgage Loan shall be construed, in relation to any
Scottish Mortgage Loan and its Related Security, so as to include the transfer
of the beneficial interest therein and/or the legal title thereto, and the
terms "assign" and "assigned" shall in that context be construed accordingly;

"disposal" shall be construed as any sale, lease, transfer, conveyance,
assignment, assignation, licence, sub-licence or other disposal and "dispose"
shall be construed accordingly;

a "guarantee" means any guarantee, bond, indemnity, letter of credit, third
party security or other legally binding assurance against financial loss
granted by one person in respect of any indebtedness of another person, or any
agreement to assume any indebtedness of any other person or to supply funds or
to invest in any manner whatsoever in such other person by reason of, or
otherwise in relation to, indebtedness of such other person;

"indebtedness" shall be construed so as to include any obligation (whether
incurred as principal or as surety) for the payment or repayment of money,
whether present or future, actual or contingent;

"leasehold" shall be construed so as to include any property held under a duly
registered or recorded long lease in Scotland;

a "month" is a reference to a period starting on one day in a calendar month
and ending on the numerically corresponding day in the next calendar month
save that, where any such period would otherwise end on a day which is not a
business day, it shall end on the next business day, unless that day falls in
the calendar month succeeding that in which it would otherwise have ended, in
which case it shall end on the preceding business day, provided that, if a
period starts on the last business day in a calendar month or if there is no
numerically corresponding day in the month in which that period ends, that
period shall end on the last business day in that later month (and references
to "months" shall be construed accordingly);

"party" shall be construed as a party to a particular agreement, as the case
may be;

"set-off" shall be construed so as to include equivalent or analogous rights
under the laws of jurisdictions other than England and Wales;

"subsidiary" means, (a) a subsidiary within the meaning of Section 736 of the
Companies Act 1985, and (b) unless the context requires otherwise, a
subsidiary undertaking within the meaning of Section 258 of the Companies Act
1985;

"VAT" means value added tax imposed by the United Kingdom as referred to in
the Value Added Tax Act 1994 and legislation (whether delegated or otherwise)
replacing the same or supplemental thereto or in any primary or subordinate
legislation promulgated by the European Union or any official body or agency
thereof, and any similar turnover tax replacing or introduced in addition to
any of the same;

a "wholly-owned subsidiary" of a company or corporation shall be construed as
a reference to any company or corporation which has no other members except
that other company or corporation and that other company's or corporation's
wholly-owned subsidiaries or persons acting on behalf of that other company or
corporation or its wholly-owned subsidiaries; and

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the "winding-up" or "administration" of a company or corporation shall be
construed so as to include any equivalent or analogous proceedings under the
law of the jurisdiction in which such company or corporation is incorporated
or any jurisdiction in which such company or corporation carries on business
including the seeking of liquidation, winding-up, bankruptcy, reorganisation,
dissolution, administration, arrangement, adjustment, protection or relief of
debtors.

2.1  "(GBP)", "sterling" or "pounds sterling" denotes the lawful currency for
     the time being of the United Kingdom of Great Britain and Northern
     Ireland; "(euro)", "euro" or "Euro" denotes the lawful currency for the
     time being of the member states of the European Union that adopt the
     single currency introduced at the start of the third stage of European
     Economic Monetary Union pursuant to the Treaty of Rome of 25th March,
     1957, establishing the European Community as amended from time to time
     and as amended by, inter alia, the Treaty of European Union of 7th
     February, 1992; "$", "US$", "US dollars" or "dollars" denotes the lawful
     currency for the time being of the United States of America.

2.2  In this Master Definitions Schedule and in any of the Transaction
     Documents in which this Master Definitions Schedule is expressed to be
     incorporated or to which this Master Definitions Schedule is expressed to
     apply:

     (a)  words denoting the singular number only shall include the plural
          number also and vice versa;

     (b)  words denoting one gender only shall include the other genders;

     (c)  words denoting persons only shall include firms and corporations and
          vice versa;

     (d)  references to any statutory provision shall be deemed also to refer
          to any statutory modification or re-enactment thereof or any
          statutory instrument, order or regulation made thereunder or under
          any such re-enactment;

     (e)  references to any agreement or other document (including any of the
          Transaction Documents) shall be deemed also to refer to such
          agreement or document as amended, varied, supplemented or novated
          from time to time;

     (f)  clause, paragraph and schedule headings are for ease of reference
          only;

     (g)  reference to a statute shall be construed as a reference to such
          statute as the same may have been, or may from time to time be,
          amended or re-enacted to the extent such amendment or re-enactment
          is substantially to the same effect as such statute on the date
          hereof;

     (h)  unless stated otherwise reference to a time of day shall be
          construed as a reference to London (GMT) time; and

     (i)  references to any person shall include references to his successors,
          transferees and assigns and any person deriving title under or
          through him.

2.3  Any requirement in any Transaction Document for any action to be taken
     according to the standards of a "reasonable, prudent mortgage lender"
     shall be satisfied by the relevant party taking the relevant action in
     accordance with the Seller's Policy from time to time.

2.4  Save as provided otherwise, where any obligation in a Transaction
     Document is owed to more than one party that obligation is owed to each
     of them separately and may be enforced by any of them.

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2.5  (a)  Where a term is defined in an Issuer Master Definitions Schedule and
          is used but not defined in this Master Definitions Schedule then, in
          connection with the relevant Issuer, that term shall have the
          meaning indicated in that Issuer Master Definitions Schedule; and

     (b)  Where a term is used but not defined in a document to which this
          Master Definitions Schedule applies and that term is not defined in
          this Master Definitions Schedule but is defined in an Issuer Master
          Definitions Schedule, then in connection with the relevant Issuer
          that term shall have the meaning indicated in that Issuer Master
          Definitions Schedule.

3.   Governing Law

This Master Definitions Schedule is governed by, and shall be construed in
accordance with, the laws of England (provided that any terms hereof which are
particular to Scots law will be construed in accordance with the laws of
Scotland).

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