Document:

EXECUTION COPY

                               DATED 20 MARCH 2002

                                NORTHERN ROCK PLC
                                    as Seller

                                     - and -

                        GRANITE FINANCE TRUSTEES LIMITED

                              as Mortgages Trustee

                                     - and -

                         GRANITE FINANCE FUNDING LIMITED

                                     - and -

                              THE BANK OF NEW YORK
                               as Security Trustee

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                                  THIRD AMENDED
                             MORTGAGE SALE AGREEMENT

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                           SIDLEY AUSTIN BROWN & WOOD
                              1 THREADNEEDLE STREET
                                 LONDON EC2R 8AW
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                                  REF:528003V5

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                                    CONTENTS

CLAUSE                                                                  PAGE NO.
------                                                                  --------

1.  Definitions and Construction............................................4

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

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

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

5.  Trust of Monies........................................................13

6.  Perfection of the Assignment...........................................14

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

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

9.  Further Assurance......................................................25

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

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

12. Non-Merger.............................................................26

13. No Agency or Partnership...............................................26

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

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

16. Security Trustee.......................................................27

17. New Intercompany Loans.................................................28

18. Non Petition Covenant; Limited Recourse................................28

19. Amendments and Waiver..................................................29

20. Notices................................................................30

21. Third Party Rights.....................................................30

22. Execution in Counterparts; Severability................................30

23. Governing Law and Submission to Jurisdiction...........................30

24. Process Agent..........................................................31

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25. Appropriate Forum......................................................31

26. Transaction Documents..................................................31

SCHEDULE 1 REPRESENTATIONS AND WARRANTIES..................................32

SCHEDULE 2 FORMS OF TRANSFERS: REGISTERED AND UNREGISTERED LAND............40

SCHEDULE 3 ASSIGNMENT OF INSURANCE CONTRACTS...............................45

SCHEDULE 4 INSURANCE CONTRACTS.............................................47

SCHEDULE 5 ASSIGNMENT OF GUARANTEES........................................48

SCHEDULE 6 NEW MORTGAGE PORTFOLIO NOTICE...................................50

SCHEDULE 7 LOAN REPURCHASE NOTICE..........................................53

SCHEDULE 8 FORM OF NOTIFICATION TO BORROWERS...............................55

SCHEDULE 9 OFFER UNDER CLAUSE 8.6 (REPURCHASE OF FIXED RATE
      MORTGAGE LOANS)......................................................56

SCHEDULE 10................................................................57

         POWER OF ATTORNEY IN FAVOUR OF THE MORTGAGES TRUSTEE,
         FUNDING AND THE SECURITY TRUSTEE..................................57

SCHEDULE 11................................................................60

         LENDING CRITERIA..................................................60

SCHEDULE 12................................................................63

         STANDARD DOCUMENTATION............................................63

APPENDIX A

         THE INITIAL MORTGAGE LOAN PORTFOLIO...............................65

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THIS THIRD AMENDED MORTGAGE SALE AGREEMENT DATED 20 MARCH 2002 FURTHER AMENDS
AND RESTATES THE MORTGAGE SALE AGREEMENT DATED 26 MARCH 2001 BETWEEN:

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

(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 (the "MORTGAGES TRUSTEE");

(3)  GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
     limited company incorporated under the laws of Jersey, but acting out of
     its branch office established in England (registered overseas company
     number FC022999 and branch number BR005916) at 4th Floor, 35 New Bridge
     Street, Blackfriars, London EC4V 6BW ("FUNDING", and together with the
     Seller, the "BENEFICIARIES"); and

(4)  THE BANK OF NEW YORK (the "SECURITY TRUSTEE", which expression where the
     context permits shall include such company or person and all other
     companies or persons for the time being acting as the trustee or trustees
     under the Mortgages Trust Deed) whose principal office is at One Canada
     Square, 48th Floor, London E14 5AL.

WHEREAS:

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

(B)  The Seller has agreed to assign to the Mortgages Trustee certain mortgage
     loans, together with the benefit of the related security for the same, on
     the terms and subject to, the conditions set out in this Mortgage Sale
     Agreement (the "AGREEMENT").

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

IT IS HEREBY AGREED AS FOLLOWS:

1.   DEFINITIONS AND CONSTRUCTION

1.1. The provisions of the Master Definitions Schedule as amended and restated
     by (and appearing in Appendix 1 to) the Master Definitions Schedule Second
     Amendment and Restatement Deed made on 20 March 2002 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.

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2.   SALE AND PURCHASE OF INITIAL MORTGAGE PORTFOLIO

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

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

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

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

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

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

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

3.   INITIAL CLOSING DATE

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

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

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

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

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

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

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

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

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

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

3.3  EFFECT OF PAYMENT OF INITIAL PURCHASE PRICE: The parties hereto acknowledge
     that the effect of the payment to the Seller by the Mortgages Trustee of
     the Initial Purchase Price on the Initial Closing Date will be the
     assignment to the Mortgages Trustee of the beneficial

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

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

3.5  EARLY REPAYMENT CHARGES: The Mortgages Trustee hereby agrees to re-assign
     to the Seller upon the Initial Closing Date the benefit of any and all
     Early Repayment Charges payable from time to time on the Mortgage Loans
     included in the Initial Mortgage Portfolio PROVIDED THAT, if any Mortgage
     Loans in respect of which Early Repayment Charges are payable are the
     subject of a trust pursuant to Clause 5.1 (Trust in favour of Mortgages
     Trustee), the Seller, the Mortgages Trustee, Funding and the Security
     Trustee agree that the benefit of any Early Repayment Charges payable under
     such Mortgage Loan shall, on the Initial Closing Date, be released from
     such trust.

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

4.   SALE AND PURCHASE OF NEW MORTGAGE PORTFOLIOS

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

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

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

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

4.2  CONDITIONS TO EFFECTING AN ASSIGNMENT OF NEW MORTGAGE LOANS: The conditions
     to be met as at each Assignment Date in order to effect an assignment of
     New Mortgage Loans are:

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

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

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

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

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

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

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

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

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

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

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

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

     (m)  the weighted average yield on the Mortgage Portfolio together with the
          New Mortgage Portfolio to be assigned to the Mortgages Trustee on the
          relevant Assignment Date is not less than LIBOR for three-month
          sterling deposits plus 0.6 per cent., taking into account the weighted
          average yield on the Mortgage Loans and the margins on any Basis Rate
          Swaps as at the relevant Assignment Date;

     (n)  the assignment of the New Mortgage Portfolio on the relevant
          Assignment Date does not result in the weighted average loan to value
          ratio of Mortgage Loans in the

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          Mortgage Portfolio on the relevant Assignment Date (after the purchase
          of the New Mortgage Portfolio) after application of the LTV Test on
          the relevant Assignment Date exceeding the loan to value ratio (based
          on the LTV Test) of Mortgage Loans in the Mortgage Portfolio on the
          most recent preceding Closing Date plus 0.25 per cent.;

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

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

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

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

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

     PROVIDED THAT, if an Initial Purchase Price is payable to the Seller by the
     Mortgages Trustee on the relevant Assignment Date, only the conditions set
     out in paragraphs (e), (f), (i), (k), (l), (m), (o), (p), (q), (r) and (s)
     are required to be satisfied to effect an assignment of the New Mortgage
     Loans.

     Notwithstanding the foregoing, the Mortgages Trustee may waive or vary any
     of the conditions set forth in this Clause 4.2 subject to written approval
     by the Rating Agencies.

     In this Clause 4.2 references to any Monthly Payment due at any date means
     the Monthly Payment payable in respect of the month in which that date
     falls.

4.3  NO FURTHER ASSIGNMENT: The Seller and the Mortgages Trustee agree that the
     Seller may not assign any New Mortgage Portfolio after the Payment Date
     falling in January 2008 if the option to redeem the First Issuer Notes on
     the Payment Date in January 2008 pursuant to

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     Condition 5(D) of those Notes is not exercised.

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

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

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

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

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

     (a)  (if any Initial Purchase Price is payable in respect of the New
          Mortgage Portfolio which shall only be the case if an Initial
          Contribution is paid by Funding to the Mortgages Trustee on such date
          pursuant to the terms of the Mortgages Trust Deed) the Initial
          Purchase Price for the New Mortgage Portfolio shall be paid by the
          Mortgages Trustee to the Seller on the relevant Assignment Date (which
          Initial Purchase Price shall be paid by the Mortgages Trustee from
          funds received by the Mortgages Trustee from Funding on such date in
          respect of Funding's Initial Contribution for the Funding Share of the
          New Trust Property pursuant to the Mortgages Trust Deed), PROVIDED
          THAT if on any date the Seller is obliged to repurchase any Mortgage
          Loan or Mortgage Loans pursuant to Clause 8.4 (Repurchase), 8.5
          (Repurchase of Product Switches and Further Advances) or 8.6
          (Repurchase of Fixed Rate Mortgage Loans), and on such date the Seller
          assigns New Mortgage Loans and their Related Security to the Mortgages
          Trustee, the Seller is entitled to set-off against the repurchase
          price payable by it on such repurchase as set forth under Clause 8.7
          (Completion of Repurchase) the amount of any Initial Purchase Price
          payable for any such New Mortgage Loans and shall instead pay (or be
          paid) such net amount; and

     (b)  subject to and in accordance with the Mortgages Trustee Revenue
          Priority of Payments, an amount of Deferred Purchase Price in respect
          of the Mortgage Portfolio shall be paid by the Mortgages Trustee to
          the Seller on each Distribution Date but

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          only from and to the extent (if any) of any Relevant Distribution (as
          defined under paragraph (b) of Clause 4.2 (Consideration provided by
          Funding) of the Mortgages Trust Deed) available for payment on such
          date and in an amount equal to the Deferred Contribution for the
          Funding Share of the Trust Property paid by Funding to the Mortgages
          Trustee on such date or in respect of which the payment of such
          Deferred Contribution is otherwise satisfied on such date in
          accordance with the Mortgages Trust Deed.

4.6  EFFECT OF PAYMENT OF INITIAL PURCHASE PRICE OR FULFILMENT OF CONDITIONS:
     The parties hereto acknowledge that the effect of either the payment to the
     Seller by the Mortgages Trustee of the Initial Purchase Price on the
     relevant Assignment Date or, if no Initial Purchase Price is payable on
     such date, the confirmation from the Seller of the fulfilment of the
     conditions referred to in Clauses 4.2 (Conditions to Effecting an
     Assignment of New Mortgage Loans) and the delivery to the Security Trustee
     of the documents referred to in Clause 4.4 (Closing and Conditions
     Precedent) on such date, will be the assignment to the Mortgages Trustee of
     the beneficial ownership of, and all of the Seller's beneficial right,
     title, interest and benefit in and to, the New Mortgage Portfolio subject
     to the terms and provisions of the Mortgages Trust Deed, which assignment
     will be perfected upon the occurrence of any of the events set forth in
     Clause 6 (Perfection of the Assignment) and the transfer to the Mortgages
     Trustee of legal title to such New Mortgage Portfolio in accordance with
     Clause 6 (Perfection of the Assignment).

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

4.8  EARLY REPAYMENT CHARGES: The Mortgages Trustee hereby agrees to re-assign
     to the Seller upon the relevant Assignment Date the benefit of any and all
     Early Repayment Charges payable from time to time on the Mortgage Loans
     included in the New Mortgage Portfolio PROVIDED THAT, if any Mortgage Loans
     in respect of which Early Repayment Charges are payable are the subject of
     a trust pursuant to Clause 5.1 (Trust in favour of Mortgages Trustee), the
     Seller, the Mortgages Trustee, Funding and the Security Trustee agree that
     the benefit of any Early Repayment Charges payable under such Mortgage Loan
     shall, on the relevant Assignment Date, be released from such trust.

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

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4.10 MORTGAGE PORTFOLIO: Prior to the earlier to occur of:

     (a)  a Trigger Event; and

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

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

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

     For the purposes of this Clause 4.10, the "OVERCOLLATERALISATION TEST"
     shall be calculated on each Distribution Date and shall be breached on any
     Distribution Date where the aggregate Current Balance of Mortgage Loans in
     the Mortgage Portfolio on such Distribution Date is less than an amount
     equal to the product of 1.10 and the Principal Amount Outstanding of all
     Notes of all Issuers at such DISTRIBUTION DATE, and for this purpose, where
     such Notes outstanding are Controlled Amortisation Notes, the Principal
     Amount Outstanding of such Notes will be calculated on a straight-line
     basis by applying the appropriate CPR to such Notes on a monthly, rather
     than a quarterly basis.

5.   TRUST OF MONIES

5.1  TRUST IN FAVOUR OF MORTGAGES TRUSTEE: Notwithstanding the assignment
     effected by this Agreement if at, or at any other time after, the Initial
     Closing Date or, as the case may be in respect of any New Mortgage
     Portfolio, the relevant Assignment Date (but prior to any repurchase in
     accordance with Clause 8.5 (Repurchase of Product Switches and Further
     Advances)) the Seller holds, or there is held to its order, or it receives,
     or there is received to its order any property, interest, right or benefit
     and/or the proceeds thereof hereby agreed to be sold to the Mortgages
     Trustee, the Seller undertakes with the Mortgages Trustee, Funding and the
     Security Trustee that it will hold such property, interest, right or
     benefit and/or the proceeds thereof upon trust for the Mortgages Trustee
     subject at all times to the Mortgages Trust. In addition, if for any reason
     the assignment of the Initial Mortgage Portfolio, or any New Mortgage
     Portfolio (or any part thereof), or any property, interest, right or
     benefit therein or any of the proceeds thereof (each a "RELEVANT ASSET"),
     is held to be ineffective or unenforceable against any Borrower, the Seller
     undertakes with the Mortgages Trustee, Funding and the Security Trustee and
     hereby declares that it will hold such relevant asset

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<PAGE>

     upon trust for the Mortgages Trustee. The Mortgages Trustee agrees that it
     will hold its beneficial interest in such relevant asset subject at all
     times to the Mortgages Trust.

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

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

     (b)  (without prejudice to Clause 10 (Consequences of Breach)) any Early
          Repayment Charges payable by a Borrower in respect of any Mortgage
          Loan in the Mortgages Trust the benefit of which have been re-assigned
          to the Seller by the Mortgages Trustee in accordance with Clauses 3.5
          (Early Repayment Charges) and 4.8 (Early Repayment Charges);

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

6.   PERFECTION OF THE ASSIGNMENT

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

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<PAGE>

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

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

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

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

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

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

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

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

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

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

     (a)  transfers in the form set out in Part 1 of Schedule 2 (Form of
          Transfer (Registered Land - England and Wales)) of all the Mortgages
          then in the Mortgage Portfolio secured (or intended to be secured)
          over Mortgaged Properties which comprise

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<PAGE>

          registered land (including any Mortgaged Property which is the subject
          of an application for first registration at the Land Registry);

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

     (c)  transfers of the benefit of the Guarantees relating to any relevant
          Mortgage Loan in the form of the Assignment of Guarantees set out in
          Schedule 5 (Assignment of Guarantees); and

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

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

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

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

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

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

6.5  FURTHER ASSURANCE: The Seller shall, subject to the other provisions of
     this Clause 6 (Perfection of the Assignment), upon request do all such
     other deeds, assurances, agreements, instruments, acts and things as the
     Mortgages Trustee, Funding or the Security Trustee may

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<PAGE>

     require in order to give effect to the terms of this Agreement and the
     assignments contemplated herein.

6.6  RE-ASSIGNMENT OF EARLY REPAYMENT CHARGES: At any time following perfection
     pursuant to Clause 6.1 (Perfection Events) and the delivery of documents
     pursuant to Clause 6.2 (Perfection) and Clause 6.3 (Transfer Documents),
     the Mortgages Trustee shall deliver to the Seller a deed of re-assignment
     of the benefit of any Early Repayment Charges in such form as the Seller
     shall request.

7.   UNDERTAKINGS

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

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

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

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

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<PAGE>

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

     (c)  provided that, in respect of Clause 7.3(a), should the Seller be
          required as described in such Clause to provide the details of the
          names and addresses of Borrowers to the Mortgages Trustee and Funding,
          each of the Mortgages Trustee and Funding (to the extent, in respect
          of Funding, that such information is to be delivered to Funding other
          than at its United Kingdom branch office) hereby agrees to appoint an
          agent that is located in the United Kingdom and which maintains all
          appropriate registrations, notifications, licences and authorities (if
          any) required under the Data Protection Act 1998 to receive and
          maintain such information on its behalf, and under no circumstances
          shall either the Mortgages Trustee or Funding accept such information
          at its Jersey registered office or otherwise in Jersey (unless Jersey
          is declared an "approved state" by the European Commission, in which
          case such data may be delivered to the Mortgages Trustee and/or
          Funding at their respective Jersey offices).

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

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

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

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<PAGE>

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

7.6  PRODUCT SWITCHES AND FURTHER ADVANCES:

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

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

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

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

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

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

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

7.8  SECURITY POWERS OF ATTORNEY: The Seller shall grant security powers of
     attorney to the Mortgages Trustee, Funding and the Security Trustee in the
     form set out in Schedule 10

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<PAGE>

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

7.9  SHORTFALL: Unless any of the Mortgages Trustee, Funding or the Security
     Trustee needs to do so to avoid a Shortfall, none of the Mortgages Trustee,
     Funding or the Security Trustee shall set the Standard Variable Rate for
     Mortgage Loans which are in the Mortgages Trust (disregarding any discounts
     or additions to it) at a rate higher than the then applicable Standard
     Variable Rate for mortgage loans which are not in the Mortgages Trust.

7.10 FORWARDING OF NOTICE: The Security Trustee undertakes, upon receipt of any
     notice as specified in Clause 8.4(c) of the Mortgages Trust Deed, to
     forward such notice to the Mortgages Trustee, Funding, the Seller and the
     Cash Manager in the manner set forth in Clause 20 within three (3) London
     Business Days of receipt thereof. The Security Trustee shall have no other
     obligation other than the foregoing following receipt of such notice.

8.   WARRANTIES AND REPURCHASE BY THE SELLER

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

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

     (b)  in relation to each New Mortgage Loan and its Related Security in a
          New Mortgage Portfolio, on the date of the service of the relevant New
          Mortgage Portfolio Notice and on the relevant Assignment Date;

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

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

8.2  RELIANCE: The Seller acknowledges that the Representations and Warranties
     are made with a view to inducing the Mortgages Trustee, Funding and the
     Security Trustee either to enter into this Agreement and the other
     Transaction Documents to which each is a party or to agree to

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<PAGE>

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

8.3  REMEDIES: The Mortgages Trustee's, Funding's and the Security Trustee's
     sole remedy in respect of a breach of any of the Representations and
     Warranties shall be to take action under this Clause 8 (Warranties and
     Repurchase by the Seller) or under Clause 8.4 (Adjustments to Trust
     Property) of the Mortgages Trust Deed. Furthermore, in respect of any
     actual or alleged breach of Clause 8.1 (Representations and Warranties),
     the Mortgages Trustee, Funding or the Security Trustee shall, as
     applicable:

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

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

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

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

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<PAGE>

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

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

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

     then at Funding's (with the consent of the Security Trustee) or the
     Security Trustee's direction, the Mortgages Trustee may serve upon the
     Seller a notice in the form of the Loan Repurchase Notice whereupon the
     Seller will be required to repurchase the relevant Mortgage Loan and its
     Related Security and any other Mortgage Loan secured or intended to be
     secured by that Related Security or any part of it in accordance with
     Clause 8.7 (Completion of Repurchase), provided, however, that the
     Security Trustee shall have no duty to provide any such notice to the
     Seller or consider granting its consent pursuant to this Clause 8.4 unless
     the Security Trustee has been notified by a party to a Transaction Document
     of such material breach of such Representation or Warranty which, in the
     opinion of such party (as communicated to the Security Trustee), could have
     a material adverse effect on the related Mortgage Loan and/or its Related
     Security, taking into account the considerations provided in this Clause
     8.4, and further provided that prior to receipt of such notice the Security
     Trustee shall be entitled to assume that no such material breach has
     occurred.

8.5  REPURCHASE OF PRODUCT SWITCHES AND FURTHER ADVANCES: In the event of there
     being at any date in respect of any Mortgage Loan assigned to the Mortgages
     Trustee hereunder a PS/FA Event (other than a Mortgage Loan becoming a
     Re-Fixed Mortgage Loan, such PS/FA Event being dealt with under Clause 8.6
     (Repurchase of Fixed Rate Mortgage Loans)), the Seller may at any time
     serve notice in the form of the Loan Repurchase Notice on the Mortgages
     Trustee whereupon the Mortgages Trustee will be required to sell and to
     re-transfer to the Seller in accordance with Clause 8.7 (Completion of
     Repurchase) any Mortgage Loan identified in the Loan Repurchase Notice
     together with its Related Security and any other Mortgage Loan secured or
     intended to be secured by that Related Security or any part of it (any such
     Mortgage Loan or Mortgage Loans, a "PS/FA MORTGAGE LOAN") free from the
     Mortgages Trust and any right or interest that the Security Trustee may
     have in such PS/FA Mortgage Loan and its Related Security under the Funding
     Deed of Charge. Any PS/FA Mortgage Loan repurchased by the Seller shall be
     released from the Mortgages Trust and shall no longer constitute Trust
     Property and shall be released from any right or interest that the Security
     Trustee may have had in such Mortgage Loan and its Related Security under
     the Funding Deed of Charge prior to such repurchase.

8.6  REPURCHASE OF FIXED RATE MORTGAGE LOANS

     (a)  Where a Mortgage Loan bears interest at a fixed rate for a certain
          period (the "INITIAL FIXED RATE PERIOD"), after the expiry of which
          the Borrower is entitled to apply for a new fixed rate (whether or not
          subject to certain conditions), the Mortgages Trustee may by notice in
          writing to the Seller given at any time not more than 60 days before

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<PAGE>

          the expiry of that initial fixed rate period (which for the avoidance
          of doubt shall exclude any period of extension to which the relevant
          Borrower is entitled), offer to re-sell to the Seller that Mortgage
          Loan together with its Related Security if that Mortgage Loan becomes
          a Re-Fixed Mortgage Loan during the 3-month period immediately
          following the end of that initial fixed rate period. The offer will be
          in writing in the form set out in Schedule 9 (Offer under Clause 8.6 )
          and will be signed by or on behalf of the Mortgages Trustee.

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

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

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

8.7  COMPLETION OF REPURCHASE: Completion of any repurchase or re-transfer shall
     take place:

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

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

     whereupon, the Seller shall pay to the Mortgages Trustee an amount equal to
     the Current Balance of such Mortgage Loan or Mortgage Loans and any Related
     Security and all Arrears

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<PAGE>

     of Interest and Accrued Interest relating thereto as at the date of
     completion of such repurchase. The provisions of Clause 8.8 (Transfers) and
     Clause 8.9 (Documentation) shall apply to any such repurchase or
     re-transfer.

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

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

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

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

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

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

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

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

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<PAGE>

8.11 NO PREJUDICE: The terms of this Clause 8 (Warranties and Repurchase by the
     Seller) shall not prejudice the rights of the Mortgages Trustee or the
     Beneficiaries under the Mortgages Trust Deed.

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

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

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

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

                                       25

<PAGE>

9.   FURTHER ASSURANCE

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

10.  CONSEQUENCES OF BREACH

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

11.  SUBORDINATION

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

12.  NON-MERGER

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

13.  NO AGENCY OR PARTNERSHIP

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

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<PAGE>

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

14.  PAYMENTS

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

15.  ASSIGNMENT

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

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

16.  SECURITY TRUSTEE

16.1 VESTING OF RIGHTS: If there is any change in the identity of the security
     trustee in accordance with the Funding Deed of Charge, the Seller, the
     Mortgages Trustee and Funding shall execute such documents and take such
     action as the successor security trustee and the outgoing security trustee
     may require for the purpose of vesting in the successor security trustee
     the rights and obligations of the outgoing security trustee hereunder and
     releasing the outgoing security trustee from its future obligations under
     this Agreement and the Seller shall give notice thereof to the Rating
     Agencies.

16.2 NO ASSUMPTION: It is hereby acknowledged and agreed that by its execution
     of this Agreement the Security Trustee shall not assume or have any of the
     obligations or liabilities of the Seller or Funding or the Mortgages
     Trustee hereunder. Furthermore, any liberty or power which may be exercised
     or any determination which may be made hereunder by the Security Trustee
     may be exercised or made in the Security Trustee's absolute discretion

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<PAGE>

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

17.  NEW INTERCOMPANY LOANS

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

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

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

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

18.  NON PETITION COVENANT; LIMITED RECOURSE

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

18.2 LIMITED RECOURSE: Each of the parties hereto agrees that:

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

     (b)  in relation to Funding:

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

          (ii) notwithstanding any other provision of this Agreement or any
               other Transaction Document, no sum due or owing to any party to
               this Agreement

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<PAGE>

               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.

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

19.  AMENDMENTS AND WAIVER

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

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

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

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<PAGE>

20.  NOTICES

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

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

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

     (c)  in the case of Funding, to Granite Finance Funding Limited, 4th Floor,
          35 New Bridge Street, Blackfriars, London EC4V 6BW, (facsimile number
          0207-332-6199) for the attention of the Company Secretary; and

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

         or to such other address or facsimile number or for the attention of
         such other person or entity as may from time to time be notified by any
         party to the others by fifteen days prior written notice in accordance
         with the provisions of this Clause 20.

21.  THIRD PARTY RIGHTS

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

22.  EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

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<PAGE>

23.  GOVERNING LAW AND SUBMISSION TO JURISDICTION

23.1 GOVERNING LAW: This Agreement is governed by, and shall be construed in
     accordance with, English law.

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

24.  PROCESS AGENT

     The Mortgages Trustee irrevocably and unconditionally appoints Mourant &
     Co. Capital (SPV) Limited at Fourth Floor, 35 New Bridge Street,
     Blackfriars, London EC4V 6BW or otherwise at its registered office for the
     time being as its agent for service of process in England in respect of any
     proceedings in respect of this Agreement and undertakes that in the event
     of Mourant & Co. Capital (SPV) Limited ceasing so to act it will appoint
     another person with a registered office in London as its agent for service
     of process.

25.  APPROPRIATE FORUM

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

26.  TRANSACTION DOCUMENTS

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

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

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<PAGE>

                                   SCHEDULE 1
                         REPRESENTATIONS AND WARRANTIES

                                     PART 1

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

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

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

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

5.   Subject to completion of any registration which may be pending at H.M. Land
     Registry, each Mortgage either constitutes, or will constitute, following
     registration at H.M. Land Registry, a first ranking charge by way of legal
     mortgage over the relevant Mortgaged Property.

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

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

8.   No lien or right of set-off or counterclaim (other than a Right of Set-off
     referred to in Clause 8.15 (Indemnity)) has been created or arisen between
     the Seller and any Borrower which would entitle such Borrower to reduce the
     amount of any payment otherwise due under the relevant Mortgage Loan save
     in relation to the Unfair Terms in Consumer Contracts Regulations 1994 or
     the Unfair Terms in Consumer Contracts Regulations 1999 and save in
     relation to section 75 of the Consumer Credit Act 1974.

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<PAGE>

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

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

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

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

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

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

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

16.  Interest on each Mortgage Loan: (a) is charged on each Mortgage Loan in
     accordance with the provisions of that Mortgage Loan and its related
     Mortgage; (b) is not in any event adjusted by reference to the principal
     amount due thereunder; (c) is payable monthly in advance; and (d) is
     calculated by reference to the Standard Variable Rate, subject to any
     applicable caps, discounts and fixed rates and the Base Rate Pledge; and
     (e) subject to (d) above, may be set by the Seller and its successors and
     assigns to that Mortgage Loan.

17.  No payment of interest (or in the case of Repayment Mortgage Loans,
     principal and interest) equivalent to an amount in excess of one month's
     instalment at the applicable rate in respect

                                       33

<PAGE>

     of a Mortgage Loan in the Initial Mortgage Portfolio was at any time during
     the 12 months before the relevant Closing Date or Assignment Date, as the
     case may be, in arrears.

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

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

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

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

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

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

     (b)  insured under a Block Buildings Policy; or

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

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

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

24.  The Insurance Contracts are in full force and effect and all premiums
     thereon due on or before the date of this Agreement have been paid in full
     and the Seller is not aware of any circumstances giving the insurer under
     the Insurance Contracts the right to avoid or terminate such policy in so
     far as it relates to the Mortgaged Properties or the Mortgage Loans. Where
     the Lending Criteria then in force required that a Mortgage Loan was
     covered by the Insurance Contract referred to in paragraph 1 of Schedule 4
     (Insurance Contracts), that Mortgage Loan is covered by such Insurance
     Contract.

                                       34

<PAGE>

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

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

27.  In relation to each Mortgage, any person who at the date when the Mortgage
     Loan was made has been identified by the Borrower to the Seller as residing
     or about to reside in the relevant Mortgaged Property is either named as a
     joint Borrower or has signed a form of consent declaring that he or she
     agrees that any present or future rights or interests as he or she may have
     or acquire over or in respect of the relevant Mortgaged Property shall be
     postponed and made subject to the rights, interests and remedies of the
     Seller under the relevant Mortgage and that he or she shall not claim any
     such rights or interests against the Seller.

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

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

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

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

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

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

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

                                       35

<PAGE>

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

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

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

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

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

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

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

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

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

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

     For the purpose of this paragraph 41, "RIGHT TO BUY MORTGAGE LOAN" means 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).

                                       36

<PAGE>

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

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

44.  No Mortgage Loan has a Current Balance of more than(pound)350,000.

45.  Each Mortgage Loan, Mortgage Deed and Related Security in the Initial
     Mortgage Portfolio was made not earlier than 1 July 1995.

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

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

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

49.  No Mortgage Loan has an LTV greater than 95 per cent.

50.  Each Mortgage Loan has been made for one of the following purposes:

     (a)  the purchase of land; or

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

     (c)  the alteration, enlarging, repair or improvement of a dwelling or
          business premises on any land provided the creditor is the creditor
          under (i) an agreement by which the debtor is provided with credit for
          any of the purposes in (a) or (b) above or (ii) an agreement
          refinancing an agreement under which the debtor is provided with
          credit for any of the purposes in (a) or (b) above; or (iii) a
          debtor-creditor agreement secured by any land mortgage to refinance
          any existing indebtedness of the debtor, whether to the creditor or
          another person, under any agreement by which the debtor was provided
          with credit for any of the purposes in (a) and (b) above.

     Any reference in this Schedule 1 to solicitors includes licensed
     conveyancers.

                                       37

<PAGE>

                                     PART 2

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

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

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

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

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

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

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

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

                                       38

<PAGE>

                                     PART 3

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

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

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

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

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

     (a)  result in the existence or imposition of, nor oblige it to create, any
          Security Interest in favour of any person over all or any of its
          present or future revenues or assets save for any which are created
          under or pursuant to the Funding Deed of Charge;

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

     (c)  conflict with its constitutional documents; or

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

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

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

                                       39

<PAGE>

                                   SCHEDULE 2

              FORMS OF TRANSFERS: REGISTERED AND UNREGISTERED LAND

                                       40

<PAGE>

                                     PART 1

             FORM OF TRANSFER (REGISTERED LAND - ENGLAND AND WALES)

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

                                       41

<PAGE>

                                     PART 2

            FORM OF TRANSFER (UNREGISTERED LAND - ENGLAND AND WALES)

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

WHEREAS:

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

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

NOW THIS DEED WITNESSETH as follows:

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

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

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

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

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

                                       42

<PAGE>

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

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

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

Name:

Title:

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

Name:

Title:

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

                                       43

<PAGE>

                SCHEDULE REFERRED TO IN THE FOREGOING TRANSFER BY
                                NORTHERN ROCK PLC
                  IN FAVOUR OF GRANITE FINANCE TRUSTEES LIMITED

          1                 2                    3                   4

      ACCOUNT NO.    PROPERTY ADDRESS          NAME(S)        DATE OF MORTGAGE
                                                                 COMPLETION

                                       44

<PAGE>

                                   SCHEDULE 3
                        ASSIGNMENT OF INSURANCE CONTRACTS

THIS ASSIGNMENT is made by way of deed on 26 March 2001

BETWEEN

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

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

WHEREAS

(A)  By a mortgage sale agreement (as amended, varied, supplemented or novated
     from time to time "MORTGAGE SALE AGREEMENT") dated 26 March 2001 and made
     between Northern Rock, as Seller, the Mortgages Trustee, Granite Finance
     Funding Limited ("FUNDING") and The Bank of New York, as security trustee
     (the "SECURITY TRUSTEE"), certain mortgages (the "MORTGAGES") were agreed
     to be transferred to the Mortgages Trustee.

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

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

NOW THIS DEED WITNESSETH as follows:

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

                                       45

<PAGE>

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

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

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

Name:

Title:

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

Name:

Title:

                                       46

<PAGE>

                                   SCHEDULE 4
                               INSURANCE CONTRACTS
<TABLE>
<CAPTION>

POLICY NUMBER                    INSURER                             POLICY NAME/TYPE            DATE OF POLICY
<S>                              <C>                                 <C>                         <C>
1. NR 9501                       Northern Rock Mortgage Indemnity    Mortgage Indemnity          18.07.1996
                                 Company Limited

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

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

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

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

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

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

                                       47

<PAGE>

                                   SCHEDULE 5
                            ASSIGNMENT OF GUARANTEES

THIS ASSIGNMENT is made by way of deed on the 26th day of March 2001

BETWEEN:

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

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

WHEREAS:

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

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

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

NOW THIS DEED WITNESSETH as follows:

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

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

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

to hold the same unto the Mortgages Trustee absolutely.

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

                                       48

<PAGE>

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

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

Name:

Title:

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

Name:

Title:

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

                                       49

<PAGE>

                                   SCHEDULE 6
                          NEW MORTGAGE PORTFOLIO NOTICE

                                                                   Dated [     ]

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

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

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

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

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

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

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

[On duplicate

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

                                       50

<PAGE>

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

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

                                       51

<PAGE>

                                    SCHEDULE

      1              2                      3                   4

ACCOUNT NO.    PROPERTY ADDRESS          NAME(S)         DATE OF MORTGAGE
                                                            COMPLETION

                                       52

<PAGE>

                                   SCHEDULE 7
                             LOAN REPURCHASE NOTICE

                                                                 Dated [      ]

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

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

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

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

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

* Delete as appropriate

                                       53

<PAGE>

                                    SCHEDULE

    1                2                        3                    4

ACCOUNT NO.    PROPERTY ADDRESS             NAME(S)           DATE OF MORTGAGE
                                                                COMPLETION

                                       54

<PAGE>

                                   SCHEDULE 8
                        FORM OF NOTIFICATION TO BORROWERS

[To:  Borrower]

Dear Sirs,

NORTHERN ROCK

ACCOUNT NO.[       ]

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

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

Yours faithfully,

NORTHERN ROCK PLC

                                       55

<PAGE>

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

To:      Northern Rock plc
         Northern Rock House
         Gosforth
         Newcastle upon Tyne

         NE3 4PL

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

         JE4 8PX

Date:    [        ]

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

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

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

                                       56

<PAGE>

                                   SCHEDULE 10

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

THIS DEED OF POWER OF ATTORNEY is made on the 26 March 2001 by:

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

in favour of each of:

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

(3)  GRANITE FINANCE FUNDING LIMITED, acting out of its branch office
     established in England (registered overseas company number FC022999 and
     branch number BR0051916) at 4th Floor, 35 New Bridge Street, Blackfriars,
     London EC4V 6BW ("FUNDING"); and

(4)  THE BANK OF NEW YORK whose principal office is at One Canada Square, 48th
     Floor, London E14 5AL in its capacity as trustee (the "SECURITY TRUSTEE",
     which expression shall include such company and all other persons or
     companies for the time being acting as the trustee or trustees under the
     Funding Deed of Charge).

WHEREAS:

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

(B)  Words and phrases in this deed shall (save where expressed to the contrary)
     have the same meanings respectively as the words and phrases in the Master
     Definitions Schedule dated 26 March 2001 and signed for the purposes of
     identification by Brown & Wood and Clifford Chance Limited Liability
     Partnership.

NOW THIS DEED WITNESSETH:

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

                                       57

<PAGE>

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

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

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

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

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

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

     (i)  to discharge the Mortgages or the Related Security or any of them and
          to sign, seal, deliver and execute such receipts, releases,
          surrenders, instruments and deeds as may be required or advisable in
          order to discharge the relevant Mortgaged Property or Properties from
          the Mortgages or any of them; and

                                       58

<PAGE>

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

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

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

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

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

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

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

Name:

Title:

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

Name:

Title:

                                       59

<PAGE>

                                   SCHEDULE 11

                                LENDING CRITERIA

GENERAL

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

EMPLOYMENT DETAILS

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

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

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

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

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

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

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

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

INCOME CAPACITY

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

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

                                       60

<PAGE>

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

VALUATION

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

PROPERTY TYPES

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

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

LOAN AMOUNT

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

TERM

Each Mortgage Loan must have an initial term of between 7 and 35 years.

AGE OF APPLICANT

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

DISCRETION TO LEND OUTSIDE LENDING CRITERIA

On a case-by-case basis, and within approved limits as detailed in the Seller's
lending policy, the Seller may have determined that, based upon compensating
factors, a prospective Borrower who did

                                       61

<PAGE>

not strictly qualify under its lending criteria warranted an underwriting
exception. Compensating factors may include, but are not limited to, a low LTV
ratio, stable employment and time in residence at the applicant's current
residence.

MAXIMUM LOAN TO VALUE

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

MIG

It is a condition of each Mortgage Loan having an LTV ratio in excess of 75 per
cent. that the Seller take out mortgage indemnity insurance with Northern Rock
Mortgage Indemnity Company Limited ("NORMIC"). Such insurance is intended to
provide limited cover in the event of losses being incurred following
repossession and sale of a Mortgaged Property from a Borrower in default. The
premium is paid by the Seller. The indemnity insurance covers only a portion of
the relevant loss and is subject to a cap (both per-Mortgage Loan and on an
aggregate basis) on claims that may be made in respect of Mortgage Loans
originated in any one year. The policy will not cover all losses suffered in
relation to the Mortgage Loans.

                                       62

<PAGE>

                                   SCHEDULE 12

                             STANDARD DOCUMENTATION
<TABLE>
<CAPTION>

DOC NO.    DOCUMENT                                              PERIOD IN USE
<S>        <C>                                                   <C>

1.         (a) NRBS Mortgage Offer - General Conditions          01/07/95 to 31/12/95
           (b)NRBS Mortgage Offer - General Conditions           01/01/96 to 30/11/96
           (c)NRBS Mortgage Offer - General Conditions           01/12/96 to 30/09/97
2.         NRBS Mortgage Deed                                    01/07/95 to 30/09/97
3.         NRBS Mortgage Conditions Booklet 1995                 01/07/95 to 30/09/97
4.         (a)NR plc Mortgage Offer - General Conditions         01/10/97 to 31/12/97
           (b)NR plc Mortgage Offer - General Conditions         01/12/97 to 31/12/97
           (c)NR plc Mortgage Offer - General Conditions         01/01/98 to 31/05/98
           (d)NR plc Mortgage Offer - General Conditions         01/06/98 to 31/12/98
           (e)NR plc Mortgage Offer - General Conditions         01/01/99 to present
5.         NRBS/NR plc Transitional Mortgage Deed                01/07/97 to 01/10/97
6.         NR plc Mortgage Deed                                  01/10/97 to present
7.         NR plc Mortgage Conditions 1997                       01/10/97 to present
8.         NR plc "Together" Mortgage Deed                       01/04/99 to present
9.         Discounted Mortgage Brochures
10.        Discounted Mortgage Special Conditions
11.        Cashback Mortgage Brochures
12.        Cashback Mortgage Special Conditions
13.        Fixed Rate Mortgage Brochures
14.        Fixed Rate Mortgage Special Conditions
15.        Together Mortgage Brochures
16.        Together Mortgage Special Conditions
</TABLE>

                                       63

<PAGE>

                                 EXECUTION PAGE

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

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

Title:______________________

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

--------------------------------------------
Director/Authorised Signatory

Name:

Title:

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

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

Name:

Title:___

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

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

Name:

Title:

                                       64

<PAGE>

                                   APPENDIX A

                       THE INITIAL MORTGAGE LOAN PORTFOLIO
<TABLE>
<CAPTION>

ACCOUNT NO  PROPERTY ADDRESS   NAME OF BORROWER(S)  DATE OF MORTGAGE   CURRENT BALANCE
                                                      COMPLETION
<S>            <C>                <C>                 <C>                <C>

</TABLE>

                                       65DATED [_____] SEPTEMBER, 2002

                           GRANITE MORTGAGES 02-2 PLC
                                as Current Issuer

                                     - AND -

                              THE BANK OF NEW YORK
                                 as Note Trustee

                                     - AND -

                                     OTHERS

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

                              ISSUER DEED OF CHARGE
--------------------------------------------------------------------------------

                           SIDLEY AUSTIN BROWN & WOOD
                              1 THREADNEEDLE STREET
                                 LONDON EC2R 8AW
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                              REF: 30507-13/546941

<PAGE>

                                    CONTENTS

CLAUSE                                                                  PAGE NO.

1.       Interpretation........................................................2

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

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

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

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

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

7.       Enforcement..........................................................13

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

9.       Receiver.............................................................18

10.      Further Assurance and Power of Attorney..............................21

11.      Crystallisation......................................................23

12.      Provisions relating to the Security..................................24

13.      Protection of Third Parties..........................................25

14.      Set-Off..............................................................26

15.      Representations and Covenants........................................26

16.      Note Trustee Provisions..............................................31

17.      Modification and Waiver..............................................32

18.      Miscellaneous Provisions.............................................33

19.      Rights cumulative....................................................34

20.      Assignment...........................................................35

21.      Non Petition Covenant; Corporate Obligations.........................35

22.      Notices..............................................................35

23.      Third Party Rights...................................................36

24.      Execution in Counterparts; Severability..............................37

25.      Governing Law and Jurisdiction; Appropriate Forum....................37

SCHEDULE 1  FORM OF SECURITY POWER OF ATTORNEY................................38

SCHEDULE 2  CURRENT ISSUER POST-ENFORCEMENT PRIORITY OF PAYMENTS..............41

SCHEDULE 3  FORM OF NOTICE OF ASSIGNMENT......................................44

                                       i
<PAGE>

THIS DEED OF CHARGE is made on [_____] September, 2002

BETWEEN:

(1)  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 as Current
     Issuer;

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

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

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

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

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

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

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

(9)  NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as Current Issuer Cash Manager;

(10) NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as Basis Rate Swap Provider;

(11) [_____], whose registered office is at [_____] in its capacity as Dollar
     Currency Swap Provider;

(12) [_____], whose registered office is at [_____] in its capacity as Euro
     Currency Swap Provider;

(13) LAW DEBENTURE CORPORATE SERVICES LIMITED (registered number 3388362) a
     private limited company incorporated under the laws of England and Wales
     whose

                                       1
<PAGE>

     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as
     the Corporate Services Provider.

WHEREAS:

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

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

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

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

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

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

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

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

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

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

NOW THIS DEED WITNESSES AS FOLLOWS:

1.   INTERPRETATION

1.1  DEFINITIONS: The provisions of:

     (a)  the Master Definitions Schedule as amended and restated by (and
          appearing as Appendix 1 to) the Master Definitions Schedule [Third]
          Amendment Deed made on

                                       2
<PAGE>

          [_____] September, 2002 between, among others, the Seller, Funding and
          the Mortgages Trustee, and

     (b)  the Issuer Master Definitions Schedule signed for the purposes of
          identification by Sidley Austin Brown & Wood and Allen & Overy on
          [_____] September, 2002,

     (as the same have been and may be amended, varied or supplemented from time
     to time with the consent of the parties hereto) are expressly and
     specifically incorporated into and shall apply to this Agreement.

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

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

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

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

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

2.   COVENANT TO PAY AND TO PERFORM

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

     (a)  duly and punctually pay and discharge all monies and liabilities
          whatsoever which now are or at any time hereafter may (whether before
          or after demand) become due and payable by the Current Issuer to the
          Note Trustee (whether for its own account or as trustee for the
          Current Issuer Secured Creditors) or to any of the other Current
          Issuer Secured Creditors, whether actually or contingently, under this
          Current Issuer Deed of Charge and/or any of the other Current Issuer
          Transaction Documents (including without limitation the Current Issuer
          Notes); and

                                       3
<PAGE>

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

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

3.   CURRENT ISSUER SECURITY

3.1  FUNDING CHARGED PROPERTY:

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

     (b)  To the intent that the Note Trustee shall have a security interest in
          accordance with the Security Interests (Jersey) Law 1983 (the "JERSEY
          SECURITY LAW") (and as secured party for the purposes of such law) for
          payment or discharge of the Current Issuer Secured Obligations,
          subject to Clause 4 (Release of Current Issuer Charged Property), the
          Current Issuer (as debtor for the purposes of the Jersey Security Law)
          hereby assigns to the extent that the same may be situate in Jersey at
          any relevant time to the Note Trustee all of its right, title, benefit
          and interest and all claims, present and future, in and to, the
          security and all property, assets and rights and claims held on trust
          by the Security Trustee for the payment or discharge of the relevant
          Funding Secured Obligations pursuant to the Funding Deed of Charge
          including all rights to receive payment of any amount which may become
          payable to the Current Issuer thereunder and all rights to serve
          notices and/or make demands thereunder and/or to take such steps as
          are required to cause payments to become due and payable thereunder
          and all rights of action in respect of any breach thereof and all
          rights to receive damages or obtain relief in respect thereof and the
          proceeds of any of the foregoing, TO HOLD the same unto the Note
          Trustee absolutely.

                                       4
<PAGE>

3.2  CONTRACTUAL RIGHTS:

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

     (i)     the Current Issuer Intercompany Loan Agreement;

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

     (iii)   the Current Issuer Swap Agreements;

     (iv)    the Current Issuer Bank Account Agreement;

     (v)     the Current Issuer Cash Management Agreement;

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

     (vii)   the Current Issuer Trust Deed;

     (viii)  the Current Issuer Notes;

     (ix)    the Current Issuer Underwriting Agreement;

     (x)     the Current Issuer Subscription Agreement;

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

     (xii)   the Current Issuer Corporate Services Agreement; and

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

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

                                       5
<PAGE>

     and the proceeds of any of the foregoing, TO HOLD the same unto the Note
     Trustee absolutely.

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

     (i)    the Current Issuer Intercompany Loan Agreement;

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

     (iii)  the Current Issuer Swap Agreements;

     (iv)   the Current Issuer Bank Account Agreement;

     (v)    the Current Issuer Cash Management Agreement;

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

     (vii)  the Current Issuer Trust Deed;

     (viii) the Current Issuer Notes;

     (ix)   the Current Issuer Underwriting Agreement;

     (x)    the Current Issuer Subscription Agreement;

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

     (xii)  the Current Issuer Corporate Services Agreement; and

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

     including, without limitation, all rights to receive payment of any amounts
     which may become payable to the Current Issuer thereunder and all payments
     received by the Current Issuer thereunder including, without limitation,
     all rights to serve notices and/or make demands thereunder and/or to take
     such steps as are required to cause payments to become due and payable
     thereunder and all rights of action in respect of

                                       6
<PAGE>

     any breach thereof and all rights to receive damages or obtain relief in
     respect thereof and the proceeds of any of the foregoing, TO HOLD the same
     unto the Note Trustee absolutely.

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

     (a)  the Current Issuer Transaction Accounts; and

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

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

3.4  AUTHORISED INVESTMENTS: The Current Issuer, by way of first fixed charge
     for the payment or discharge of the Current Issuer Secured Obligations,
     subject to Clause 4 (Release of Current Issuer Charged Property), hereby
     charges in favour of the Note Trustee all of its right, title, benefit and
     interest, present and future in, to and under any Authorised Investment
     purchased using monies standing to the credit of any Current Issuer Bank
     Account for the time being owned by it and all rights in respect of or
     ancillary to such Authorised Investments, including the right to income and
     the proceeds of any of the foregoing, TO HOLD the same unto the Note
     Trustee absolutely.

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

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

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

3.8  NO TRANSFER OF OBLIGATIONS: Notwithstanding anything else in this Current
     Issuer Deed of

                                       7
<PAGE>

     Charge, it is hereby agreed that dispositions of property effected in or
     pursuant to this Clause 3 (Current Issuer Security) do not transfer
     obligations, and nothing herein shall be construed as a transfer of
     obligations to, the Note Trustee.

3.9  NOTICE AND ACKNOWLEDGEMENT:

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

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

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

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

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

3.10 NOTE TRUSTEE'S DISCRETION IN RELATION TO CURRENT ISSUER CHARGED PROPERTY:
     Without prejudice to any other rights of the Note Trustee after the
     security created under this Current Issuer Deed of Charge has become
     enforceable and subject to the terms of the Current Issuer Transaction
     Documents, the Note Trustee may from time to time at any time after any
     part or parts of the Current Issuer Security becomes enforceable:

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

                                       8
<PAGE>

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

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

4.   RELEASE OF CURRENT ISSUER CHARGED PROPERTY

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

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

4.3  WITHDRAWALS FROM CURRENT ISSUER BANK ACCOUNTS: Subject to and in accordance
     with this Current Issuer Deed of Charge and the other Current Issuer
     Transaction Documents, the Current Issuer Cash Manager, on behalf of the
     Current Issuer and the Note Trustee, is

                                       9
<PAGE>

     permitted pursuant to Clause 6 (Restrictions on Exercise of Certain Rights)
     from time to time to withdraw amounts from the Current Issuer Bank Accounts
     in order to apply such amounts in accordance with the relevant Current
     Issuer Priority of Payments. Any amount so withdrawn shall be released from
     the Security Interests (including the Jersey Security Interests) created
     under this Current Issuer Deed of Charge provided that such amount is
     applied in accordance with and subject to the relevant Current Issuer
     Priority of Payments.

5.   DECLARATION OF TRUST

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

6.   RESTRICTIONS ON EXERCISE OF CERTAIN RIGHTS

6.1  PAYMENTS TO CURRENT ISSUER BANK ACCOUNTS: At all times prior to the
     release, re-assignment and/or discharge of the Current Issuer Security
     pursuant to Clause 4 (Release of the Current Issuer Charged Property), the
     Current Issuer shall save as otherwise provided in the Current Issuer
     Transaction Documents or unless the Note Trustee otherwise agrees in
     writing (and then only on such terms and in such manner as the Note Trustee
     may require) procure that the Current Issuer Bank Accounts shall from time
     to time be credited with all amounts received by the Current Issuer under
     or in respect of the Current Issuer Transaction Documents, including
     without limitation the following payments:

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

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

     (c)  amounts received by the Current Issuer from the Basis Rate Swap
          Provider under the Current Issuer Basis Rate Swap Agreement;

     (d)  amounts received by the Current Issuer from the Dollar Currency Swap
          Provider under the Current Issuer Dollar Currency Swap Agreements;

     (e)  amounts received by the Current Issuer from the Euro Currency Swap
          Provider under the Current Issuer Euro Currency Swap Agreements;

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

                                       10
<PAGE>

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

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

6.2  NO WITHDRAWAL FROM CURRENT ISSUER BANK ACCOUNTS: At all times during the
     subsistence of the Current Issuer Security, the Current Issuer shall not be
     entitled to withdraw or transfer from any Current Issuer Bank Account any
     monies standing to the credit thereof or direct any payment to be made
     therefrom to any person save to the extent expressly permitted under this
     Current Issuer Deed of Charge without the Note Trustee's prior written
     consent.

6.3  PERMITTED WITHDRAWALS FROM CURRENT ISSUER BANK ACCOUNTS; AUTHORISED
     INVESTMENTS:

     (a)  The Current Issuer covenants with the Note Trustee that the amounts
          standing to the credit of the Current Issuer Bank Accounts may only be
          withdrawn in accordance with this Clause 6.3 (Permitted Withdrawals
          from Current Issuer Bank Accounts; Authorised Investments) or
          otherwise with the Note Trustee's prior written consent.

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

     (c)  The Note Trustee hereby authorises the Current Issuer Cash Manager,
          prior to the security becoming enforceable pursuant to Clause 7.2
          (Enforceable), to make withdrawals from the relevant Current Issuer
          Bank Account for the purposes of acquiring Authorised Investments
          provided that all amounts received in respect of the Authorised
          Investments (including earnings thereon) shall be deposited into the
          relevant Current Issuer Bank Account from which they were originally
          drawn.

6.4  CURRENT ISSUER PRE-ENFORCEMENT REVENUE PRIORITY OF PAYMENTS: On each
     Payment Date prior to the Current Issuer Security becoming enforceable
     pursuant to Clause 7.2

                                       11
<PAGE>

     (Enforceable), the Note Trustee hereby authorises the Current Issuer or the
     Current Issuer Cash Manager in its place to withdraw Current Issuer
     Available Revenue Receipts standing to the credit of the Current Issuer
     Transaction Accounts and to apply such monies in accordance with the
     provisions and the order of priority of the Current Issuer Pre-Enforcement
     Revenue Priority of Payments (as the same may be amended or varied from
     time to time) as set out in Schedule 2 (Cash Management and Maintenance of
     Ledgers) to the Current Issuer Cash Management Agreement.

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

6.6  NO ENFORCEMENT BY CURRENT ISSUER SECURED CREDITORS: Each of the Current
     Issuer Secured Creditors (other than the Note Trustee acting on behalf of
     the Noteholders and any Receiver) hereby agrees with the Current Issuer and
     the Note Trustee that:

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

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

     (c)  it shall not take any steps for the purpose of recovering any of the
          Current Issuer Secured Obligations (including, without limitation, by
          exercising any rights of set-off) or enforcing any rights arising out
          of the Current Issuer Transaction Documents against the Current Issuer
          and it shall not take any steps or legal proceedings for the
          winding-up, dissolution or reorganisation of, or the institution of
          insolvency proceedings against, the Current Issuer or for the
          appointment of a receiver,

                                       12
<PAGE>

          administrator, liquidator or similar officer of the Current Issuer in
          respect of any or all of its revenues and assets,

     PROVIDED THAT

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

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

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

7.   ENFORCEMENT

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

                                       13
<PAGE>

7.2  ENFORCEABLE:

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

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

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

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

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

7.3  POWER OF SALE:

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

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<PAGE>

     (b)  Section 103 of the 1925 Act shall not apply to this Current Issuer
          Deed of Charge and forthwith after the security has become enforceable
          in accordance with Clause 7.2 (Enforceable) the statutory power of
          sale, as extended by this Current Issuer Deed of Charge, and all other
          powers shall become immediately exercisable without notice to the
          Current Issuer and the provisions of the 1925 Act regulating the power
          of sale shall, so far as they relate to the Current Issuer Charged
          Property, be varied and extended accordingly.

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

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

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

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

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

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

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

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

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<PAGE>

8.   UPON ENFORCEMENT

8.1  SERVICE OF A CURRENT ISSUER NOTE ENFORCEMENT NOTICE: Without prejudice to
     the effectiveness of any service of a Current Issuer Note Enforcement
     Notice, the Note Trustee shall as soon as is practicable notify each of the
     following parties of the enforcement of the Current Issuer Security
     (whether by service of a copy of any Current Issuer Note Enforcement Notice
     or otherwise):

     (a)  the Seller;

     (b)  Funding;

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

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

     (e)  the Current Issuer Swap Providers;

     (f)  the Corporate Services Provider; and

     (g)  each other Current Issuer Secured Creditor.

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

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

     (b)  if not already crystallised, any charge created by this Current Issuer
          Deed of Charge which is a floating charge shall crystallise.

8.3  CURRENT ISSUER POST-ENFORCEMENT PRIORITY OF PAYMENTS: At any time after the
     security created by this Current Issuer Deed of Charge has become
     enforceable in accordance with Clause 7.2 (Enforceable) and provided that
     the relevant Current Issuer Note Event of Default has not been waived in
     accordance with the provisions of this Current Issuer Deed of Charge,
     Current Issuer Available Revenue Receipts, Current Issuer Available
     Principal Receipts and all other monies paid to or received or recovered by
     or on behalf of the Current Issuer or the Note Trustee or any Receiver
     appointed on its behalf, including all proceeds following any sale,
     realisation or enforcement of the security created under this Current
     Issuer Deed of Charge and all amounts not previously distributed and/or
     standing to the credit of any Current Issuer Bank Account shall (if not
     already received by the Note Trustee) be paid to and held by the Note
     Trustee on trust to apply the same (save to the extent otherwise required
     by applicable law) in accordance with the order of priority of the Current
     Issuer Post-

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     Enforcement Priority of Payments (as the same may be amended or varied from
     time to time) as set out on the date hereof in Schedule 2 (Current Issuer
     Post-Enforcement Priority of Payments) to this Current Issuer Deed of
     Charge.

8.4  CERTIFICATION OF AMOUNTS:

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

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

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

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

     (a)  (provided such Current Issuer Secured Creditor has received a copy of,
          or other notice of the service on the Current Issuer of, any such
          Current Issuer Note Enforcement Notice) each Current Issuer Secured
          Creditor agrees that it will pay to the Note Trustee or the Receiver,
          as the case may be, all monies received or recovered by such Current
          Issuer Secured Creditor (whether by way of set-off or

                                       17
<PAGE>

          otherwise) in order that such amounts may be applied by the Note
          Trustee in accordance with Clause 8.3 (Current Issuer Post-Enforcement
          Priority of Payments);

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

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

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

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

9.   RECEIVER

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

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

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

9.4  AGENT OF CURRENT ISSUER: The Receiver shall, so far as the law permits, be
     the agent of the Current Issuer and the Current Issuer alone shall be
     responsible for the Receiver's contracts, engagements, acts, omissions,
     misconduct, negligence or default and for liabilities incurred by it; and
     in no circumstances whatsoever shall the Note Trustee or any Current Issuer
     Secured Creditor be in any way responsible for or incur any liability in
     connection with its contracts, engagements, acts, omissions, misconduct,
     negligence or default, and if a liquidator of the

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<PAGE>

     Current Issuer shall be appointed, the Receiver shall act as principal and
     not as agent for the Note Trustee. Notwithstanding the generality of the
     foregoing, such Receiver shall in the exercise of its powers, authorities
     and discretions conform to the regulations or directions (if any) from time
     to time made and given by the Note Trustee.

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

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

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

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

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

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

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

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

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<PAGE>

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

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

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

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

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

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

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

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

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

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

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<PAGE>

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

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

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

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

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

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

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

10.  FURTHER ASSURANCE AND POWER OF ATTORNEY

10.1 FURTHER ASSURANCE: The Current Issuer covenants with and undertakes to the
     Note Trustee

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<PAGE>

     from time to time (notwithstanding that the security may not have become
     enforceable and the Note Trustee may not have served any Current Issuer
     Note Enforcement Notice) upon demand:

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

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

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

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

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

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

10.3 CURRENT ISSUER CHARGED PROPERTY ON TRUST: To the extent permitted to do so
     under the Current Issuer Transaction Documents, for the purpose of giving
     effect to this Current Issuer Deed of Charge, the Current Issuer hereby
     declares that, after service of a Current Issuer Note Enforcement Notice,
     it will hold all the Current Issuer Charged Property (subject to the right
     of redemption) upon trust to convey, assign or otherwise deal with such
     Current Issuer

                                       22
<PAGE>

     Charged Property in such manner and to such person as the Note Trustee
     shall direct pursuant to this Current Issuer Deed of Charge, and declares
     that it shall be lawful for the Note Trustee to appoint a new trustee or
     trustees of the Current Issuer Charged Property in place of the Current
     Issuer.

11.  CRYSTALLISATION

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

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

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

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

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

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

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

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

          (iii) the presentation of a petition for the making of an
                administration order in relation to the Current Issuer;

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

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

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<PAGE>

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

12.  PROVISIONS RELATING TO THE SECURITY

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

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

     (b)  a continuing security for the Current Issuer Secured Obligations and
          shall remain in force as continuing security for the Current Issuer
          Secured Creditors and shall not be considered as satisfied or
          discharged by any intermediate payment or settlement of the whole or
          any part of the Current Issuer Secured Obligations or the existence at
          any time of a credit balance on any current or other account or any
          other matter or thing whatsoever.

12.2 CONSOLIDATION: Section 93 of the 1925 Act shall not apply in relation to
     any of the charges contained in this Current Issuer Deed of Charge.

12.3 RULING OFF: If the Note Trustee receives notice of any Encumbrance
     affecting the whole or any part of the Current Issuer Charged Property or
     any security granted hereunder in contravention of the provisions hereof:

     (a)  the Note Trustee may open a new account in the name of the Current
          Issuer and, if it does not, it shall nevertheless be deemed to have
          done so at the time it received such notice; and

     (b)  all payments made by the Current Issuer to the Note Trustee after the
          Note Trustee receives such notice shall be credited or deemed to have
          been credited to the new account, and in no circumstances whatsoever
          shall operate to reduce the Current Issuer Secured Obligations as at
          the time the Note Trustee received such notice.

12.4 AVOIDANCE OF PAYMENTS: Any settlement, discharge or release between (a) the
     Current Issuer and (b) the Note Trustee or any Receiver (the "RELEVANT
     PERSON(S)") shall be conditional upon no security or payment granted or
     made to the Relevant Person(s) by the Current Issuer or any other person
     being avoided or reduced by virtue of any provisions or enactments relating
     to bankruptcy, insolvency or liquidation for the time being in force and,
     in the event of such security or payment being so avoided or reduced, the
     Relevant Person(s) shall be

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<PAGE>

     entitled to recover the value or amount of such security or payment from
     the Current Issuer and from the security subsequently as if such
     settlement, discharge or release had not occurred.

12.5 RETENTION OF CHARGES: If the Note Trustee shall have reasonable grounds for
     believing that the Current Issuer may be insolvent or deemed to be
     insolvent pursuant to the provisions of the Insolvency Act 1986 (and
     production of a solvency certificate of a duly authorised officer of the
     Current Issuer shall be prima facie evidence of the solvency of the Current
     Issuer) as at the date of any payment made by the Current Issuer to the
     Note Trustee and that as a result, such payment may be capable of being
     avoided or clawed back, the Note Trustee shall be at liberty to retain the
     charges contained in or created pursuant to this Current Issuer Deed of
     Charge until the expiry of a period of one month plus such statutory period
     within which any assurance, security, guarantee or payment can be avoided
     or invalidated after the payment and discharge in full of all Current
     Issuer Secured Obligations notwithstanding any release, settlement,
     discharge or arrangement which may be given or made by the Note Trustee on,
     or as a consequence of, such payment or discharge of liability provided
     that, if at any time within such period, a petition shall be presented to a
     competent court for an order for the winding up or the making of an
     administration order in respect of the Current Issuer, or if the Current
     Issuer shall commence to be wound up or to go into administration or any
     analogous proceedings shall be commenced by or against the Current Issuer,
     as the case may be, the Note Trustee shall be at liberty to continue to
     retain such security for such further period as the Note Trustee may
     determine and such security shall be deemed to continue to have been held
     as security for the payment and discharge to the Note Trustee of all
     Current Issuer Secured Obligations.

12.6 POSSESSION: Entry into possession of the Current Issuer Charged Property or
     any part thereof shall not render the Note Trustee or any Receiver of the
     Current Issuer liable to account as mortgagee in possession for anything
     except actual receipts. If and whenever the Note Trustee or the Receiver
     enters into possession of the Current Issuer Charged Property, it shall be
     entitled at any time to go out of such possession.

12.7 CHANGE OF NAME, ETC.: This Deed shall remain valid and enforceable
     notwithstanding any change in the name, composition or constitution of the
     Note Trustee or the Current Issuer or any amalgamation, merger or
     consolidation by the Note Trustee or the Current Issuer, with any other
     corporation (whether, in the case of the Current Issuer, permitted under
     the Current Issuer Transaction Documents or not).

13.  PROTECTION OF THIRD PARTIES

13.1 NO ENQUIRY: No purchaser from, or other person dealing with, the Note
     Trustee or a Receiver shall be concerned to enquire whether any of the
     powers exercised or purported to be exercised under this Current Issuer
     Deed of Charge has arisen or become exercisable, whether the Current Issuer
     Secured Obligations remain outstanding or have become payable, whether the
     Note Trustee or the Receiver is authorised to act or as to the propriety or
     validity of the exercise or purported exercise of any power; and the title
     and the position of such a purchaser or other person shall not be
     impeachable by reference to any of those matters and all the protection to
     purchasers contained in Sections 104 and 107 of the 1925 Act shall apply

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<PAGE>

     to any person purchasing from or dealing with the Note Trustee or any such
     Receiver.

13.2 RECEIPTS TO CURRENT PARTIES: Upon any sale, calling in, collection,
     enforcement or other realisation of the Current Issuer Charged Property in
     accordance with the terms hereof and upon any other dealing or transaction
     under or pursuant to this Current Issuer Deed of Charge, the receipt of the
     Note Trustee or any Receiver shall be an absolute and a conclusive
     discharge to a purchaser or other person dealing with the Note Trustee or
     such Receiver and shall relieve it of any obligation to see to the
     application of any monies paid to or by the direction of the Note Trustee
     or such Receiver.

14.  SET-OFF

     The Note Trustee may at any time after the security created under this
     Current Issuer Deed of Charge has become enforceable in accordance with
     Clause 7.2 (Enforceable) without notice and notwithstanding any settlement
     of account or other matter whatsoever combine or consolidate all or any
     existing accounts of the Current Issuer whether in its own name or jointly
     with others and held by it or any Current Issuer Secured Creditor and may
     set-off or transfer all or any part of any credit balance or any sum
     standing to the credit of any such account (whether or not the same is due
     to the Current Issuer from the Note Trustee or relevant Current Issuer
     Secured Creditor and whether or not the credit balance and the account in
     debit or the Current Issuer Secured Obligations are expressed in the same
     currency in which case the Note Trustee is hereby authorised to effect any
     necessary conversions at its prevailing rates of exchange) in or towards
     satisfaction of any of the Current Issuer Secured Obligations (and on or at
     any time after the security created under this Current Issuer Deed of
     Charge has become enforceable in accordance with Clause 7.2 (Enforceable)
     the Security Trustee may make such application notwithstanding any
     specified maturity of any deposits), but subject always to the Current
     Issuer Priority of Payments, and may in its absolute discretion estimate
     the amount of any liability of the Current Issuer which is contingent or
     unascertained and thereafter set-off such estimated amount and no amount
     shall be payable by the Note Trustee to the Current Issuer unless and until
     all the Current Issuer Secured Obligations have been ascertained and fully
     repaid or discharged.

15.  REPRESENTATIONS AND COVENANTS

15.1 REPRESENTATIONS AND WARRANTIES:

     (a)  The Current Issuer hereby represents to the Note Trustee that it is,
          as of the date hereof, the beneficial owner of all of the Current
          Issuer Charged Property free and clear of all liens, claims, charges
          or Encumbrances except those specifically created by this Current
          Issuer Deed of Charge and undertakes that it will retain all rights
          associated with ownership of the Current Issuer Charged Property free
          and clear of all liens, claims, charges, Encumbrances except those
          specifically created by this Current Issuer Deed of Charge or any
          other Current Issuer Transaction Document.

     (b)  The Current Issuer represents that it has taken all necessary steps to
          enable it to create the Security Interests in respect of the Current
          Issuer Charged Property in accordance with this Current Issuer Deed of
          Charge and has taken no action or steps which will

                                       26
<PAGE>

          or may prejudice its right, title and interest in, to and under the
          Current Issuer Charged Property.

15.2 NEGATIVE COVENANTS: The Current Issuer hereby undertakes that, for so long
     as any Current Issuer Secured Obligation remains outstanding, the Current
     Issuer shall not, save to the extent contemplated or provided in the
     Current Issuer Transaction Documents or unless it has obtained the prior
     written consent of the Note Trustee:

     (a)  open or maintain any bank account or deposit account with any bank or
          any other financial institution other than the Current Issuer Bank
          Accounts or close the Current Issuer Bank Accounts;

     (b)  either in a single transaction or in a series of transactions, whether
          related or not and whether voluntarily or involuntarily, sell,
          transfer, lease or otherwise dispose of or grant any option over all
          or any part of its property, assets or undertaking or any interest,
          estate, right, title or benefit therein or agree or purport to do any
          of the foregoing;

     (c)  create or permit to subsist any Security Interest (unless arising by
          operation of law) over or in respect of any of its property, assets
          (including any uncalled capital) or undertaking, present or future;

     (d)  incur any indebtedness in respect of borrowed money whatsoever or give
          any guarantee or indemnity in respect of any indebtedness of or of any
          obligation or any person;

     (e)  pay any dividend or make any other distribution to its shareholder or
          issue any further shares;

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

     (g)  consent to any amendment to, or variation of or agree to waive or
          authorise any breach of any provision of any of the Current Issuer
          Transaction Documents or permit any person whose obligations form part
          of the Current Issuer Charged Property to be released from its
          respective obligations;

     (h)  offer to surrender to any company any amounts which are available for
          surrender by way of group relief within Chapter IV of Part X of the
          Income and Corporation Taxes Act 1988 except for full payment at the
          current applicable rate of corporation tax applied to the surrendered
          amount and payable at the date when corporation tax is due to be paid
          by the claimant or would be due in the absence of the surrender;

     (i)  do any act or thing the effect of which would be to make the Current
          Issuer resident in any jurisdiction other than the United Kingdom;

                                       27
<PAGE>

     (j)  permit any person other than the Current Issuer and the Note Trustee
          to have any equitable interest in any of its property, assets or
          undertakings or any interest, estate, right, title or benefit therein;

     (k)  purchase or otherwise acquire any Note or Notes (including the Current
          Issuer Notes); or

     (l)  engage in any activities in the United States (directly or through
          agents), nor derive any income from United States sources as
          determined under United States income tax principles and will not hold
          any property if doing so would cause it to be engaged or deemed to be
          engaged in a trade or business within the United States as determined
          under United States tax principles.

15.3 POSITIVE COVENANTS: The Current Issuer covenants and undertakes with the
     Note Trustee for the benefit of the Current Issuer Secured Creditors that
     it shall:

     (a)  Registration of Security: file or procure the filing with the
          Registrar of Companies pursuant to Chapter I of Part XII of the
          Companies Act 1985 of duly completed Forms 395 together with an
          executed original of this Current Issuer Deed of Charge and the
          required fee within 21 days after the date of this Current Issuer Deed
          of Charge;

     (b)  Notice of Assignment: on the date hereof join with the Note Trustee in
          giving notice of the assignments and the security created under or
          pursuant to this Current Issuer Deed of Charge to Funding, the
          Security Trustee and each other party to any Current Issuer
          Transaction Document not being a party to this Current Issuer Deed of
          Charge and for the purposes of the Jersey Security Interests to any
          person from whom the Current Issuer would have been entitled to claim
          the collateral (but for the Jersey Security Interests) and on any date
          hereafter (to the extent only that such notice and acknowledgement is
          not given under or pursuant to this Current Issuer Deed of Charge)
          join with the Note Trustee in giving notice of the assignments and the
          security created under this Current Issuer Deed of Charge to any party
          to a Current Issuer Transaction Document entered into by the Current
          Issuer after the date hereof and, for the purposes of the Jersey
          Security Interests, to any person from whom the Current Issuer would
          have been entitled to claim the collateral (but for the Jersey
          Security Interests), in each case in the form (or substantially in the
          form) set out in Schedule 3 (Form of Notice of Assignment);

     (c)  Accounts for Stock Exchange: cause to be prepared and certified by the
          Auditors of the Current Issuer in respect of each Financial Year,
          accounts in such form as will comply with relevant legal and
          accounting requirements for the time being and all requirements for
          the time being of any stock exchange on which the Current Issuer Notes
          are listed;

     (d)  Books and Records: at all times keep or procure the keeping of such
          books of account and records as may be necessary to comply with all
          applicable laws and so as to enable accounts of the Current Issuer to
          be prepared and allow the Note Trustee and

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<PAGE>

          any person or persons appointed by the Note Trustee free access to
          such books of account and records at all reasonable times during
          normal business hours upon reasonable notice in writing, provided that
          such inspection shall only be for the purposes of carrying out its
          duties under this Current Issuer Deed of Charge and any information so
          obtained shall only be used and passed on to any other person for the
          purpose of the Note Trustee carrying out its duties under this Current
          Issuer Deed of Charge;

     (e)  Notice of Current Issuer Note Event of Default: give notice in writing
          to the Note Trustee forthwith upon becoming aware of the occurrence of
          any Current Issuer Note Event of Default or Current Issuer Potential
          Note Event of Default including the status of any such default or
          matter and what action the Current Issuer is taking or proposes to
          take with respect thereto, without waiting for the Note Trustee to
          take any action;

     (f)  Certificates Relating to Financial Information: give to the Note
          Trustee (a) within seven days after demand by the Note Trustee
          therefor and (b) (without the necessity for any such demand) promptly
          after the publication of its audited accounts in respect of each
          Financial Year commencing with the Financial Year first ending after
          the date hereof and in any event not later than 180 days after the end
          of each such Financial Year a certificate signed by two directors of
          the Current Issuer to the effect that as at a date not more than seven
          days before delivering such certificate (the "CERTIFICATION DATE")
          there did not exist and had not existed since the certification date
          of the previous certificate (or in the case of the first such
          certificate the date hereof) any Current Issuer Note Event of Default
          or any Current Issuer Potential Note Event of Default (or if such then
          exists or existed specifying the same) and that during the period from
          and including the certification date of the last such certificate (or
          in the case of the first such certificate the date hereof) to and
          including the certification date of such certificate the Current
          Issuer has complied with all its obligations contained in this Current
          Issuer Deed of Charge and each of the other Current Issuer Transaction
          Documents or (if such is not the case) specifying the respects in
          which it has not so complied;

     (g)  Further Assurances: so far as permitted by applicable law, at all
          times execute all such further documents and do all such further acts
          and things as may be necessary at any time or times in the opinion of
          the Note Trustee to give effect to this Current Issuer Deed of Charge
          and the other Current Issuer Transaction Documents;

     (h)  Compliance with Current Issuer Transaction Documents: observe and
          comply with its obligations and use its reasonable endeavours to
          procure that each other party to any of the Current Issuer Transaction
          Documents complies with and performs all its respective obligations
          under each Current Issuer Transaction Document and not make any
          amendment or modification to such agreement or agree to waive or
          authorise any breach thereof without the prior written approval of the
          Note Trustee and notify the Note Trustee forthwith upon becoming aware
          of any breach by any such other party to any Current Issuer
          Transaction Document;

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<PAGE>

     (i)  Information: so far as permitted by applicable law, give or procure to
          be given to the Note Trustee such opinions, certificates, information
          and evidence as it shall require and in such form as it shall require
          (including without limitation the procurement by the Current Issuer of
          all such certificates called for by the Note Trustee pursuant to this
          Current Issuer Deed of Charge) for the purpose of the discharge or
          exercise of the duties, trusts, powers, authorities and discretions
          vested in it under this Current Issuer Deed of Charge or by operation
          of law;

     (j)  Taxes: duly and promptly pay and discharge all Taxes imposed upon it
          or its assets unless such Taxes are, in the opinion of the Note
          Trustee, being contested in good faith by the Current Issuer;

     (k)  Basis Rate Swap Agreement: in the event of termination of the Current
          Issuer Basis Rate Swap Agreement, notify the Note Trustee and the
          Rating Agencies and use its best efforts to enter into a replacement
          basis rate swap agreement upon terms acceptable to the Rating Agencies
          and the Note Trustee with a basis rate swap provider whom the Rating
          Agencies have previously confirmed in writing to the Current Issuer
          and the Note Trustee will not cause the then-current ratings of the
          Current Issuer Notes to be downgraded, withdrawn or qualified; and

     (l)  Currency Swap Agreements:

          (i)  Dollar Currency Swap Agreements: in the event of termination of
               any Transaction (as defined in the Current Issuer Dollar Currency
               Swap Agreements) under any Current Issuer Dollar Currency Swap
               Agreement, notify the Note Trustee and the Rating Agencies and
               use its best efforts to enter into a replacement of that
               Transaction in respect of the Dollar Notes (or, as applicable,
               the relevant class of the Dollar Notes) upon terms acceptable to
               the Rating Agencies and the Note Trustee with a dollar currency
               swap provider whom the Rating Agencies have previously confirmed
               in writing to the Current Issuer and the Note Trustee will not
               cause the then-current ratings of the Current Issuer Notes to be
               downgraded, withdrawn or qualified;

          (ii) Euro Currency Swap Agreements: in the event of termination of any
               Transaction (as defined in the Current Issuer Euro Currency Swap
               Agreements) under any Current Issuer Euro Currency Swap
               Agreement, notify the Note Trustee and the Rating Agencies and
               use its best efforts to enter into a replacement of that
               Transaction in respect of the Euro Notes (or, as applicable, the
               relevant class of the Euro Notes) upon terms acceptable to the
               Rating Agencies and the Note Trustee with a euro currency swap
               provider whom the Rating Agencies have previously confirmed in
               writing to the Current Issuer and the Note Trustee will not cause
               the then-current ratings of the Current Issuer Notes to be
               downgraded, withdrawn or qualified;

     (m)  Bank Accounts: in the event of termination of the Current Issuer Bank
          Account Agreement, subject to and in accordance with the provisions of
          the Current Issuer

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<PAGE>

          Bank Account Agreement use its reasonable endeavours to enter into a
          replacement bank account agreement;

     (n)  Cash Management Agreement: in the event of termination of the Current
          Issuer Cash Management Agreement, subject to and in accordance with
          the provisions of the Current Issuer Cash Management Agreement, use
          its reasonable endeavours to enter into a replacement cash management
          agreement.

     In addition to the foregoing, the Current Issuer hereby covenants with the
     Basis Rate Swap Provider, the Dollar Currency Swap Provider and the Euro
     Currency Swap Provider that it shall not make any amendment or modification
     to, or exercise any waiver in respect of, the Current Issuer Cash
     Management Agreement which would be adversely prejudicial to the interests
     of the Dollar Currency Swap Provider or the Euro Currency Swap Provider
     without the prior written consent of the Dollar Currency Swap Provider or
     the Euro Currency Swap Provider (as the case may be) save that to the
     extent required, such consent shall not be unreasonably withheld or
     delayed.

16.  NOTE TRUSTEE PROVISIONS

16.1 SUPPLEMENT TO TRUSTEE ACTS: It is hereby agreed that Clause 10 (Supplement
     to Trustee Acts) of the Current Issuer Trust Deed shall be incorporated in
     and shall apply, mutatis mutandis, to this Current Issuer Deed of Charge
     (and for that purpose references therein to "these presents" shall be
     construed as references to this Current Issuer Deed of Charge) provided
     that for the purposes of paragraph (n) therein at any time after the
     redemption in full of the Current Issuer Notes, the Note Trustee shall have
     regard to the interests of the Current Issuer Secured Creditor which ranks
     next highest under the Current Issuer Post-Enforcement Priority of Payment.

16.2 APPOINTMENT, REMOVAL AND RETIREMENT: It is hereby agreed that Clause 14
     (Appointment, Removal and Retirement of Note Trustee) of the Current Issuer
     Trust Deed shall be incorporated in and shall apply, mutatis mutandis, to
     this Current Issuer Deed of Charge (and for that purpose references therein
     to "these presents" shall be construed as references to this Current Issuer
     Deed of Charge) provided that for the purposes of this Current Issuer Deed
     of Charge it shall be an additional requirement that the Note Trustee under
     this Current Issuer Deed of Charge shall be the same person or persons as
     the Note Trustee under the Current Issuer Trust Deed.

16.3 REMUNERATION AND INDEMNIFICATION OF NOTE TRUSTEE: It is hereby agreed that
     Clause 9 (Remuneration and Indemnification of Note Trustee) of the Current
     Issuer Trust Deed shall be incorporated in and shall apply, mutatis
     mutandis, to this Current Issuer Deed of Charge (and for that purpose
     references therein to "these presents" shall be construed as references to
     this Current Issuer Deed of Charge).

16.4 MEETINGS OF NOTEHOLDERS: It is hereby agreed that Schedule 4 (Provisions
     for Meetings of Noteholders) of the Current Issuer Trust Deed shall be
     incorporated in and shall apply, mutatis mutandis, to this Current Issuer
     Deed of Charge (and for that purpose references therein to "these presents"
     shall be construed as references to this Current Issuer Deed of Charge).

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<PAGE>

16.5 INVESTMENT OF MONEYS: It is hereby agreed that Clause 8.3 (Authorised
     Investments) of the Current Issuer Trust Deed shall be incorporated in and
     shall apply, mutatis mutandis, to this Current Issuer Deed of Charge.

16.6 ACKNOWLEDGEMENT: Each of the parties to this Current Issuer Deed of Charge
     hereby acknowledges that it is bound by the provisions of the Current
     Issuer Trust Deed which are incorporated by reference into this Current
     Issuer Deed of Charge and confirms that it has received a copy of the
     Current Issuer Trust Deed.

16.7 JERSEY LAW WAIVERS:

     (a)  Any right which at any time the Current Issuer has under the existing
          or future laws of Jersey whether by virtue of the droit de discussion
          or otherwise to require that recourse be had to the assets of any
          other person before any claim is enforced against the Current Issuer
          in respect of the obligations hereby assumed by the Current Issuer is
          hereby abandoned and waived.

     (b)  The Current Issuer undertakes that if at any time any person
          indemnified sues the Current Issuer in respect of any such obligations
          and the person in respect of whose obligations the indemnity is given
          is not sued also, the Current Issuer shall not claim that such person
          be made a party to the proceedings and the Current Issuer agrees to be
          bound by this indemnity whether or not it is made a party to legal
          proceedings for the recovery of the amount due or owing to the person
          indemnified, as aforesaid, by the person in respect of whose
          obligations the indemnity is given and whether the formalities
          required by any law of Jersey whether existing or future in regard to
          the rights or obligations of securities shall or shall not have been
          observed.

     (c)  Any right which the Current Issuer may have under the existing or
          future laws of Jersey whether by virtue of the droit de division or
          otherwise to require that any liability under this indemnity be
          divided or apportioned with any other person or reduced in any manner
          whatsoever is hereby abandoned and waived.

17.  MODIFICATION AND WAIVER

17.1 MODIFICATION: The Note Trustee may without the consent or sanction of the
     Noteholders or any other Current Issuer Secured Creditor at any time and
     from time to time concur with the Current Issuer in making any modification
     (except a Basic Terms Modification (as defined in paragraph 1 of Schedule 4
     (Provisions for Meetings of Noteholders) to the Current Issuer Trust Deed)
     (i) to this Current Issuer Deed of Charge, the Current Issuer Notes, the
     Current Issuer Trust Deed or to any of the other Transaction Documents
     which in the opinion of the Note Trustee it may be proper to make PROVIDED
     THAT the Note Trustee is of the opinion that such modification will not be
     materially prejudicial to the interests of the Noteholders or (ii) to this
     Current Issuer Deed of Charge, the Current Issuer Notes, the Current Issuer
     Trust Deed or any of the other Transaction Documents if in the opinion of
     the Note Trustee such modification is of a formal, minor or technical
     nature or to correct a manifest error. For the

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<PAGE>

     purposes of this Clause 17.1 (Modification), a proposed modification will
     not materially harm the interest of any Noteholder solely as a result of
     any New Issuer executing a Deed of Accession pursuant to Clause 3.12 (New
     Intercompany Loans) of the Funding Deed of Charge or Clause 2.2 (New
     Intercompany Loan Agreement) of the Intercompany Loan Terms and Conditions.
     Any such modification may be made on such terms and subject to such
     conditions (if any) as the Note Trustee may determine, shall be binding
     upon the Current Issuer and the Current Issuer Secured Creditors and,
     unless the Note Trustee agrees otherwise, shall be notified by the Current
     Issuer to the Noteholders in accordance with the Conditions and to the
     other Current Issuer Secured Creditors as soon as practicable thereafter.
     So long as any of the Current Issuer Notes are rated by the Rating
     Agencies, the Current Issuer shall notify the Rating Agencies in writing as
     soon as reasonably practicable thereafter of any modification to the
     provisions of this Current Issuer Deed of Charge, the Current Issuer Notes,
     the Current Issuer Trust Deed or any of the other Current Issuer
     Transaction Documents.

17.2 WAIVER: Subject as expressly provided otherwise in the Current Issuer Notes
     or in any other Transaction Document, the Note Trustee may from time to
     time and at any time without the consent or sanction of the Noteholders or
     any other Current Issuer Secured Creditor and without prejudice to its
     rights in respect of any subsequent breach, but only if and in so far as in
     its opinion the interests of the Noteholders shall not be materially
     prejudiced thereby waive or authorise any breach or proposed breach by the
     Current Issuer or any other party thereto of any of the covenants or
     provisions contained in this Current Issuer Deed of Charge or in any of the
     other Transaction Documents or determine that any Current Issuer Note Event
     of Default shall not be treated as such for the purposes of this Current
     Issuer Deed of Charge, the Current Issuer Notes and the Current Issuer
     Trust Deed PROVIDED ALWAYS THAT the Note Trustee shall not exercise any
     powers conferred on it by this Clause 17.2 (Waiver) in contravention of any
     express direction given by Extraordinary Resolution or by a request in
     writing of the relevant Noteholders in accordance with the Conditions (but
     so that no such direction or request shall affect any waiver, authorisation
     or determination previously given or made). Any such waiver, authorisation
     or determination:

     (a)  may be given or made on such terms and subject to such conditions (if
          any) as the Note Trustee may determine;

     (b)  shall be binding on the Noteholders and the other Current Issuer
          Secured Creditors, if, but only if, the Note Trustee shall so require;
          and

     (c)  shall be notified by the Current Issuer to the Noteholders in
          accordance with the Conditions and to the other Current Issuer Secured
          Creditors as soon as practicable thereafter.

     The provisions of this Clause 17.2 (Waiver) shall be in lieu of Section
     316(a)(1)(B) of the Trust Indenture Act and Section 316(a)(1)(B) of the
     Trust Indenture Act is hereby expressly excluded from this Current Issuer
     Deed of Charge, the Current Issuer Notes and the Current Issuer Trust Deed
     as permitted by the Trust Indenture Act.

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<PAGE>

18.  MISCELLANEOUS PROVISIONS

18.1 EVIDENCE OF INDEBTEDNESS: In any action, proceedings or claim relating to
     this Current Issuer Deed of Charge or the charges contained in this Current
     Issuer Deed of Charge, a statement as to any amount due to any Current
     Issuer Secured Creditor or of the Current Issuer Secured Obligations or any
     part thereof or a statement of any amounts which have been notified to the
     Note Trustee as being amounts due to any Current Issuer Secured Creditor
     which is certified as being correct by an officer of the Note Trustee or an
     officer of the relevant Current Issuer Secured Creditor shall, save in the
     case of manifest error, be conclusive evidence that such amount is in fact
     due and payable.

18.2 LIABILITY: All the liabilities and obligations of the Current Issuer under
     or by virtue of this Current Issuer Deed of Charge shall not be impaired
     by:

     (a)  any failure of this Current Issuer Deed of Charge to be legal, valid,
          binding and enforceable as regards the Current Issuer whether as a
          result of a lack of corporate powers or of directors' authority,
          defective execution or for any other reason whatsoever;

     (b)  any giving of time, forbearance, indulgence or waiver as regards the
          Current Issuer;

     (c)  a discharge or release of the Current Issuer; or

     (d)  any other matter or event whatsoever whether similar to the foregoing
          or not which might have the effect of impairing all or any of its
          liabilities or obligations except proper and valid payment or
          discharge of all Current Issuer Secured Obligations and amounts
          whatsoever which this Current Issuer Deed of Charge provides are to be
          paid by the Current Issuer or an absolute discharge or release of the
          Current Issuer signed by the Current Issuer Secured Creditors and the
          Note Trustee.

18.3 CURRENT ISSUER SECURED CREDITORS: Each Current Issuer Secured Creditor
     shall be bound by the provisions of this Current Issuer Deed of Charge as
     if it contained covenants by each Current Issuer Secured Creditor in favour
     of the Note Trustee and every other Current Issuer Secured Creditor to
     observe and be bound by all the provisions of this Current Issuer Deed of
     Charge expressed to apply to the Current Issuer Secured Creditors.

19.  RIGHTS CUMULATIVE

     The respective rights of the Note Trustee, the Current Issuer Secured
     Creditors and any Receiver to this Current Issuer Deed of Charge are
     cumulative and may be exercised as often as each considers appropriate and
     are in addition to their respective rights under the general law. No
     failure on the part of the Note Trustee, the Current Issuer Secured
     Creditors or any Receiver to exercise, and no delay in exercising, any
     right hereunder shall operate as a waiver thereof, nor shall any single or
     partial exercise of any such right preclude any other or further exercise
     thereof or the exercise of any other right. The remedies in this Current
     Issuer Deed of Charge are cumulative and not exclusive of any remedies
     provided by law.

                                       34
<PAGE>

20.  ASSIGNMENT

         None of the Current Issuer Secured Creditors may assign, encumber or
         transfer all or any part of its rights or benefits and/or transfer its
         obligations under this Current Issuer Deed of Charge without the prior
         written consent of the Note Trustee.

21.  NON PETITION COVENANT; CORPORATE OBLIGATIONS

21.1 NON PETITION: Each of the parties hereto hereby agrees that it shall not
     institute against the Current Issuer any winding-up, administration,
     insolvency or similar proceedings for so long as any sum is outstanding
     under Current Issuer Notes or for two years plus one day since the last day
     on which any such sum was outstanding provided that the Note Trustee may
     prove or lodge a claim in the event of a liquidation initiated by any other
     person.

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

22.  NOTICES

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

     (a)  in the case of the Current Issuer, to Granite Mortgages 02-2 plc,
          Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile number 020
          7606 0643) for the attention of the Company Secretary with a copy to
          Northern Rock plc, Northern Rock House, Gosforth, Newcastle upon Tyne
          NE3 4PL (facsimile number 0191 213 2203) for the attention of the
          Group Secretary;

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

                                       35
<PAGE>

     (c)  in the case of the Principal Paying Agent, the Agent Bank, the
          Registrar, the Transfer Agent or the Account Bank, to Citibank, N.A.,
          5 Carmelite Street, London, EC4Y OPA;

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

     (e)  in the case of the U.S. Paying Agent, to Citibank, N.A., 111 Wall
          Street, 14th Floor, Zone 3, New York, N.Y. 10043, U.S.A. (facsimile
          number 212 657 3862) for the attention of Global Agency and Trust;

     (f)  in the case of the Basis Rate Swap Provider, to Northern Rock plc,
          Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL (facsimile
          number 0191 213 2203) for the attention of the Group Secretary;

     (g)  in the case of the Dollar Currency Swap Provider to [______],
          (facsimile number [______]) for the attention of the [______];

     (h)  in the case of the Euro Currency Swap Provider to [______], (facsimile
          number [______]) for the attention of the [______];

     (i)  in the case of the Corporate Services Provider, to Law Debenture
          Corporate Services Limited, Fifth Floor, 100 Wood Street, London EC2V
          7EX (facsimile number 020 7606 0643) for the attention of the Company
          Secretary;

     (j)  in the case of Moody's, to Moody's Investor Services, 1st Floor, 2
          Minster Court, Mincing Lane, London EC3R 7XB (facsimile number 020
          7772 5400) for the attention of David Harrison, Asset Backed Finance;

     (k)  in the case of S&P, to Standard & Poor's, Garden House, 18 Finsbury
          Circus, London EC2M 7BP (facsimile number 020 7826 3598) for the
          attention of the Structured Finance Surveillance Group; and

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

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party to
     the others by fifteen days prior written notice in accordance with the
     provisions of this Clause 22 (Notices).

23.  THIRD PARTY RIGHTS

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

                                       36
<PAGE>

24.  EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

25.  GOVERNING LAW AND JURISDICTION; APPROPRIATE FORUM

25.1 GOVERNING LAW: This Deed is governed by, and shall be construed in
     accordance with, English law, save that those parts of this Current Issuer
     Deed of Charge concerned with the creation, subsistence or enforcement of
     the Jersey Security Interests shall be governed by, and shall be construed
     in accordance with Jersey law.

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

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

IN WITNESS of which this Current Issuer Deed of Charge has been executed by the
parties hereto as a deed which has been delivered on the date first appearing on
page one.

                                       37
<PAGE>

                                   SCHEDULE 1

                       FORM OF SECURITY POWER OF ATTORNEY

THIS POWER OF ATTORNEY is made on [O] September, 2002 by Granite Mortgages 02-2
plc (registered number [O]) a private limited liability company incorporated
under the laws of England and Wales whose registered office is at Fifth Floor,
100 Wood Street, London EC2V 7EX (the "PRINCIPAL").

WHEREAS

(1)  By virtue of a Deed (as amended, varied, supplemented or novated from time
     to time the "CURRENT ISSUER DEED OF CHARGE") dated [O] September, 2002
     between Granite Mortgages 02-2 plc, The Bank of New York as Note Trustee
     and others, provision was made for the execution by the Principal of this
     Power of Attorney.

(2)  Words and phrases in this Power of Attorney shall (save where expressed to
     the contrary) have the same meanings respectively as the words and phrases
     in the Current Issuer Deed of Charge.

NOW THIS POWER OF ATTORNEY WITNESSETH

1.   The Principal hereby irrevocably (within the meaning of Section 4 of the
     Powers of Attorney Act 1971) and by way of security for the payment and
     performance of the Current Issuer Secured Obligations and the covenants,
     conditions, obligations and undertakings on the part of the Principal
     contained in the Current Issuer Deed of Charge and the other Current Issuer
     Transaction Documents to which the Principal is a party from time to time
     appoints The Bank of New York and any other person or persons for the time
     being the Note Trustee or Note Trustees of and under the Current Issuer
     Deed of Charge (the "ATTORNEY") and each and every person to whom the Note
     Trustee shall from time to time have delegated the exercise of the power of
     attorney conferred by this Power of Attorney (each a "DELEGATE") and any
     receiver including any administrative receiver and any manager (the
     "RECEIVER") and/or administrator (the "ADMINISTRATOR") appointed from time
     to time by the Attorney or on its behalf its true and lawful attorney for
     and in the Principal's name or otherwise jointly and severally to sign,
     seal, execute, deliver, perfect and do any assurance, act, matter or thing
     which the Attorney, Delegate, Receiver or Administrator considers in each
     case to be necessary for the protection or preservation of the Attorney's
     and the Current Issuer Secured Creditors' interests and rights (as
     described in the Current Issuer Deed of Charge) in and to the Current
     Issuer Charged Property or which ought to be done by the Principal under
     the covenants, undertakings and provisions contained in the Current Issuer
     Deed of Charge and the other Current Issuer Transaction Documents to which
     the Principal is a party from time to time and generally to in its name and
     on its behalf to exercise all or any of the powers, authorities or
     discretions conferred by or pursuant to the Current Issuer Deed of Charge
     on the Note Trustee and/or any Receiver whether on or at any time after the
     security has become enforceable in accordance with Clause 7.2 (Enforceable)
     of the Current Issuer Deed of Charge or in any other circumstances where
     the Attorney has become entitled to take any of the steps referred

                                       38
<PAGE>

     to in the Current Issuer Deed of Charge including (without limitation) any
     or all of the following:

     (a)  to do every act or thing which the Attorney, Delegate, Receiver or
          Administrator may deem to be necessary, proper or expedient for
          getting in any of the Current Issuer Charged Property and/or fully and
          effectively vesting, transferring or assigning the Current Issuer
          Charged Property or any part thereof and/or the Principal's estate,
          right, title, benefit and/or interest therein or thereto in or to the
          Attorney and its successors in title or other person or persons
          entitled to the benefit thereof or for carrying into effect any other
          dealing with the Current Issuer Charged Property whatsoever permitted
          under the Current Issuer Deed of Charge in the same manner and as
          fully and effectively as the Principal could have done;

     (b)  the power by writing under its hand by an officer of the Attorney
          (including every Receiver appointed under the Current Issuer Deed of
          Charge) from time to time to appoint a substitute attorney (each a
          "SUBSTITUTE") who shall have power to act on behalf of the Principal
          as if that Substitute shall have been originally appointed Attorney by
          this Power of Attorney and/or to revoke any such appointment at any
          time without assigning any reason therefor.

2.   In favour of the Attorney, any Delegate, any Receiver and/or Administrator
     and/or Substitute, or a person dealing with any of them and the successors
     and assigns of such a person, all acts properly done and documents executed
     or signed by the Attorney, a Delegate, a Receiver, an Administrator or a
     Substitute in the purported exercise of any power conferred by this Power
     of Attorney shall for all purposes be valid and binding on the Principal
     and its successors and assigns.

3.   The Principal irrevocably and unconditionally undertakes to indemnify the
     Attorney and each Delegate, Receiver and/or Administrator and/or Substitute
     appointed from time to time by the Attorney and their respective estates
     (each an "INDEMNIFIED PARTY") against all actions, proceedings, claims,
     costs, expenses and liabilities of every description arising from the
     exercise, or the purported exercise, of any of the powers conferred by this
     Power of Attorney, save where the same arises as the result of the fraud,
     negligence or wilful default of the relevant Indemnified Party or its
     officers or employees.

4.   The provisions of Clause 3 (Current Issuer Security) of the Current Issuer
     Deed of Charge shall continue in force after the revocation or termination,
     howsoever arising, of this Power of Attorney.

5.   The laws of England and Wales shall apply to this Power of Attorney and the
     interpretation thereof and to all acts of the Attorney and each Delegate,
     Receiver and/or Administrator and/or Substitute carried out or purported to
     be carried out under the terms hereof except that in relation to any action
     taken by the Attorney, each Delegate, Receiver and/or Administrator/and or
     Substitute in respect of the Jersey Security Interests or the Current
     Issuer Jersey Secured Property, the laws of Jersey shall apply.

                                       39
<PAGE>

6.   The Principal hereby agrees at all times hereafter to ratify and confirm
     whatsoever the said Attorney or its attorney or attorneys or any Delegate,
     Receiver or Administrator or Substitute shall properly and lawfully do or
     cause to be done in and concerning the Current Issuer Charged Property.

IN WITNESS whereof this Power of Attorney has been executed as a deed by the
Principal the day and year first before written.

EXECUTED AS A DEED by                                              )
GRANITE MORTGAGES 02-2 PLC                                         )
acting by:                                                         )

---------------------------------
Director

Name:

Title:

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

Name:

Title:

                                       40
<PAGE>

                                   SCHEDULE 2

              CURRENT ISSUER POST-ENFORCEMENT PRIORITY OF PAYMENTS

Following enforcement of the Issuer Security, on each Payment Date the Note
Trustee (or the Current Issuer Cash Manager on its behalf) will apply amounts
received or recovered as follows:

     (A)  first, to pay amounts due to the Note Trustee (and any Receiver
          appointed by the Note Trustee) together with interest and (if
          necessary) VAT on those amounts and to provide for any amounts then
          due or to become due and payable to the Note Trustee and the Receiver
          under the provisions of the Current Issuer Trust Deed, the Current
          Issuer Deed of Charge and any other Transaction Document;

     (B)  second, to pay, in no order of priority between them but in proportion
          to the respective amounts due, the Agent Bank, the Paying Agents, the
          Transfer Agent and the Registrar, together with interest and (if
          necessary) VAT on those amounts and to provide for any costs, charges,
          liabilities and expenses then due or to become due and payable to them
          under the provisions of the Current Issuer Paying Agent and Agent Bank
          Agreement;

     (C)  third, in no order of priority between them but in proportion to the
          respective amounts due, towards payment of amounts (together with (if
          necessary) VAT on those amounts) due and payable to the Current Issuer
          Cash Manager under the Current Issuer Cash Management Agreement and to
          the Corporate Services Provider under the Current Issuer Corporate
          Services Agreement and to the Account Bank under the Current Issuer
          Bank Account Agreement;

     (D)  fourth, in no order of priority between them but in proportion to the
          respective amounts due, to pay:

          (i)   amounts (including such part of any termination payment) due to
                the Basis Rate Swap Provider (except for any termination payment
                due and payable to the Basis Rate Swap Provider as a result of a
                Basis Rate Swap Provider Default by that Basis Rate Swap
                Provider);

          (ii)  amounts (including such part of any termination payment) due to
                the Series 1 Class A1 Dollar Currency Swap Provider under the
                Series 1 Class A1 Dollar Currency Swap (except for any
                termination payment due and payable to that Swap Provider as a
                result of a Dollar Currency Swap Provider Default by that Swap
                Provider) and from amounts received from the Series 1 Class A1
                Dollar Currency Swap Provider to pay interest due or overdue and
                to repay principal on the Series 1 Class A1 Notes until the
                Series 1 Class A1 Notes have been repaid in full;

          (iii) amounts (including such part of any termination payment) due to
                the Series 1 Class A2 Dollar Currency Swap Provider under the
                Series 1 Class A2 Dollar Currency Swap (except for any
                termination payment due and payable to that

                                       41
<PAGE>

                Swap Provider as a result of a Dollar Currency Swap Provider
                Default by that Swap Provider) and from amounts received from
                the Series 1 Class A2 Dollar Currency Swap Provider to pay
                interest due or overdue and to repay principal on the Series 1
                Class A2 Notes until the Series 1 Class A2 Notes have been
                repaid in full; and

          (iv)  amounts (including such part of any termination payment) due to
                the Series 2 Class A Euro Currency Swap Provider under the
                Series 2 Class A Euro Currency Swap (except for any termination
                payment due and payable to that Swap Provider as a result of a
                Euro Currency Swap Provider Default by that Swap Provider) and
                from amounts received from the Series 2 Class A Euro Currency
                Swap Provider to pay interest due or overdue and to repay
                principal on the Series 2 Class A Notes until the Series 2 Class
                A Notes have been repaid in full; and

          (v)   interest due or overdue and to repay principal on the Series 3
                Class A Notes until those notes have been repaid in full;

     (E)  fifth, in no order of priority between them but in proportion to the
          respective amounts due, to pay:

          (i)   amounts (including such part of any termination payment) due to
                the Series 1 Class B Dollar Currency Swap Provider under the
                Series 1 Class B Dollar Currency Swap (except for any
                termination payment due and payable to that Swap Provider as a
                result of a Dollar Currency Swap Provider Default by that Swap
                Provider) and from amounts received from the Series 1 Class B
                Dollar Currency Swap Provider to pay interest due or overdue and
                to repay principal on the Series 1 Class B Notes until the
                Series 1 Class B Notes have been repaid in full;

          (ii)  amounts (including such part of any termination payment) due to
                the Series 2 Class B Euro Currency Swap Provider under the
                Series 2 Class B Euro Currency Swap (except for any termination
                payment due and payable to that Swap Provider as a result of a
                Euro Currency Swap Provider Default by that Swap Provider) and
                from amounts received from the Series 2 Class B Euro Currency
                Swap Provider to pay interest due or overdue and to repay
                principal on the Series 2 Class B Notes until the Series 2 Class
                B Notes have been repaid in full; and

          (iii) interest due or overdue and to repay principal on the Series 3
                Class B Notes until those notes have been repaid in full;

     (F)  sixth, in no order of priority between them but in proportion to the
          respective amounts due, to pay:

          (i)   amounts (including such part of any termination payment) due to
                the Series 1 Class C Dollar Currency Swap Provider under the
                Series 1 Class C Dollar

                                       42
<PAGE>

                Currency Swap (except for any termination payment due and
                payable to that Swap Provider as a result of a Dollar Currency
                Swap Provider Default by that Swap Provider) and from amounts
                received from the Series 1 Class C Dollar Currency Swap Provider
                to pay interest due or overdue and to repay principal on the
                Series 1 Class C Notes until the Series 1 Class C Notes have
                been repaid in full;

          (ii)  amounts (including such part of any termination payment) due to
                the Series 2 Class C Euro Currency Swap Provider under the
                Series 2 Class C Euro Currency Swap (except for any termination
                payment due and payable to that Swap Provider as a result of a
                Euro Currency Swap Provider Default by that Swap Provider) and
                from amounts received from the Series 2 Class C Euro Currency
                Swap Provider to pay interest due or overdue and to repay
                principal on the Series 2 Class C Notes until the Series 2 Class
                C Notes have been repaid in full; and

          (iii) interest due or overdue and to repay principal on the Series 3
                Class C Notes until those notes have been repaid in full;

     (G)  seventh, to pay interest due or overdue and to repay principal on the
          Series 3 Class D Notes until those notes have been repaid in full;

     (H)  eighth, in no order of priority between them but in proportion to the
          respective amounts due, to pay any termination payment to:

          (i)   the Basis Rate Swap Provider following a Basis Rate Swap
                Provider Default by the Basis Rate Swap Provider;

          (ii)  the Dollar Currency Swap Provider following a Dollar Currency
                Swap Provider Default by the Dollar Currency Swap Provider;

          (iii) the Euro Currency Swap Provider following a Euro Currency Swap
                Provider Default by the Euro Currency Swap Provider; and

     (I)  last, to pay any amount remaining following the application of
          principal and revenue set forth in paragraphs (A) through (H) above,
          to the Current Issuer.

                                       43
<PAGE>

                                   SCHEDULE 3

                          FORM OF NOTICE OF ASSIGNMENT

To: [Addressee(s)]

GRANITE MORTGAGES 02-2 PLC - ASSIGNMENT OF RIGHTS UNDER CURRENT ISSUER
TRANSACTION DOCUMENTS

                                                             [O] September, 2002

Dear Sirs,

Terms and expressions used in this letter are as defined in a deed of charge
(the "CURRENT ISSUER DEED OF CHARGE") between Granite Mortgages 02-2 plc (the
"CURRENT ISSUER"), The Bank of New York (the "NOTE TRUSTEE") and others dated
[O] September, 2002.

We hereby give notice to each addressee of this letter that by assignment(s)
under or pursuant to the Current Issuer Deed of Charge, the Current Issuer has
assigned absolutely, by way of security for the payment and performance of
certain obligations of the Current Issuer described in the Current Issuer Deed
of Charge (the "CURRENT ISSUER SECURED OBLIGATIONS"), to the Note Trustee all
its right, title, benefit and interest under the [Agreement(s)] (the "CURRENT
ISSUER TRANSACTION DOCUMENTS") [including its right, title interest and benefit
in relation to [describe property] and including, without limitation, all rights
to receive payment of any amounts which may become payable to the Current Issuer
thereunder, all payments received by the Current Issuer thereunder, all rights
to serve notices and/or make demands thereunder and/or to take such steps as are
required to cause payments to become due and payable thereunder and all rights
of action in respect of any breach thereof and all rights to receive damages or
obtain relief in respect thereof and the proceeds of any of the foregoing,
(hereinafter called "RELEVANT CURRENT ISSUER PROPERTY").

In relation to any of the Relevant Current Issuer Property which may be situated
in Jersey at any time, we hereby give notice for the purpose of the Security
Interests (Jersey) Law 1983 to each addressee of this letter that with the
intention of creating a security interest in accordance with such law in such
property in favour of the Note Trustee for the payment and performance of the
Current Issuer Secured Obligations, the Current Issuer has assigned all of its
rights, title, benefit and interest, present and future, in, to and under the
Relevant Current Issuer Property to the Note Trustee.

By signing the enclosed copy of this notice you acknowledge and consent to the
assignments and agree that:

     (i)  from the date of this notice you are obliged to and you will pay all
          moneys which are or may become payable to the Current Issuer under the
          aforesaid agreements to or to the order of the Note Trustee; and

     (ii) you have not, at the date of this notice, received notice that any
          third party has or will have any right of interest whatsoever in the
          Relevant Current Issuer Property.

                                       44
<PAGE>

Notwithstanding the assignments made by the Current Issuer and referred to in
this notice, the Note Trustee hereby confirms and you further acknowledge that:

     (b)  you may continue to make all payments becoming due to the Current
          Issuer in respect of the Relevant Current Issuer Property in the
          manner envisaged by the relevant Current Issuer Transaction
          Document(s); and

     (c)  the Current Issuer shall be entitled to exercise its rights, powers
          and discretions and perform its obligations in relation to the
          Relevant Current Issuer Property and under the Current Issuer
          Transaction Documents in accordance with the provisions of the Current
          Issuer Transaction Documents,

but only until such time as you receive notice from the Note Trustee to the
contrary or to the effect that the security created under the Current Issuer
Deed of Charge has become enforceable, in which event from receipt of such
notice you agree that you will pay all monies becoming due and payable to the
Current Issuer in respect of the Relevant Current Issuer Property in accordance
with any instructions received from the Note Trustee.

This letter is governed by, and shall be construed in accordance with, English
law, except that to the extent of any Relevant Current Issuer Property which may
be situated in Jersey at any time, it is governed by and shall be construed in
accordance with the laws of Jersey.

Please acknowledge receipt of this notice by executing and returning the copy of
this letter attached hereto.

Yours faithfully,

EXECUTED for and on behalf of                                      )
GRANITE MORTGAGES 02-2 PLC                                         )
by:                                                                )

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

Name:

Title:

                                       45
<PAGE>

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

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

Name:

Title:

We acknowledge receipt of the above notice and the terms of the assignment
created by you in respect of the Relevant Current Issuer Property.

In respect of the [Agreement]:

For and on behalf of                                               )
[Party to Current Issuer Transaction Document]                     )
by:                                                                )

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

Name:

Title:

                                       46
<PAGE>

                                 EXECUTION PAGE

THE CURRENT ISSUER

EXECUTED AS A DEED by                                              )
GRANITE MORTGAGES 02-2 PLC                                         )
acting by:                                                         )

Name:
Title:

Name:
Representing LDC Securitisation Director No. 1 Limited
Title:

THE NOTE TRUSTEE

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

Name:

Title:

THE PRINCIPAL PAYING AGENT, THE AGENT BANK,
THE REGISTRAR, THE TRANSFER AGENT AND THE ACCOUNT BANK

EXECUTED AS A DEED for and on behalf of                            )
CITIBANK, N.A.                                                     )
by:                                                                )

Name:

Title:

                                       47
<PAGE>

THE US PAYING AGENT

EXECUTED AS A DEED for and on behalf of                            )
CITIBANK, N.A.                                                     )
by:                                                                )

Name:

Title:

THE DOLLAR CURRENCY SWAP PROVIDER

EXECUTED AS A DEED for and on behalf of                            )
[-----]                                                            )
by:                                                                )

Name:

Title:

THE EURO CURRENCY SWAP PROVIDER

EXECUTED AS A DEED for and on behalf of                            )
[-----]                                                            )
by:                                                                )

Name:

Title:

                                       48
<PAGE>

THE CURRENT ISSUER CASH MANAGER AND THE BASIS RATE SWAP PROVIDER

EXECUTED AS A DEED by                                              )
                                                                   )
                                                                   )

as attorney for
NORTHERN ROCK PLC in the presence of:

Signature of Witness:

Name of Witness:

Occupation:

Address:

THE CORPORATE SERVICE PROVIDER

EXECUTED AS A DEED by                                              )
LAW DEBENTURE CORPORATE                                            )
SERVICES LIMITED                                                   )
acting by:

Name:

Title:

Name:

Title:

                                       49

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