Document:

Exhibit 4.9

                             DATED ___ October, 2002

                               ABBEY NATIONAL PLC
                         (the Sixth Issuer Cash Manager)

                                       and

                          HOLMES FINANCING (NO. 6) PLC
                               (the Sixth Issuer)

                                       and

                              THE BANK OF NEW YORK
                       (the Sixth Issuer Security Trustee)

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

                     SIXTH ISSUER CASH MANAGEMENT AGREEMENT

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

                                  ALLEN & OVERY
                                     London
                                  ICM:572259.1

<PAGE>

                                    CONTENTS

CLAUSE                                                                      PAGE

1.   Definitions and Interpretation...........................................1
2.   Appointment of Sixth Issuer Cash Manager.................................2
3.   The Sixth Issuer Cash Management Services................................2
4.   Payments, Accounts, Ledgers..............................................3
5.   Payments under Sixth Issuer Currency swaps and Termination
       of Sixth Issuer Currency Swaps.........................................5
6.   No Liability.............................................................7
7.   Costs and Expenses.......................................................7
8.   Information..............................................................7
9.   Remuneration.............................................................9
10.  Covenants of Sixth Issuer Cash Manager...................................9
11.  Sixth Issuer Cash Management Services Non-Exclusive.....................10
12.  Termination.............................................................10
13.  Further Assurance.......................................................13
14.  Miscellaneous...........................................................13
15.  Confidentiality.........................................................14
16.  Notices.................................................................15
17.  Variation and Waiver....................................................15
18.  No Partnership..........................................................16
19.  Assignment..............................................................16
20.  Exclusion of Third Party Rights.........................................16
21.  Counterparts............................................................16
22.  Governing Law...........................................................16

SCHEDULES

1.   The Cash Management Services............................................17
2.   Cash Management and Maintenance of Ledgers..............................19
3.   Form of Issuer Quarterly Report.........................................29

SIGNATORIES..................................................................33

<PAGE>

THIS SIXTH ISSUER CASH MANAGEMENT AGREEMENT is made on ___ October, 2002

BETWEEN:

(1)   ABBEY NATIONAL PLC, a public limited company incorporated under the laws
      of England and Wales whose registered office is at Abbey National House, 2
      Triton Square, Regents Place, London NW1 3AN in its capacity as cash
      manager (the "SIXTH ISSUER CASH MANAGER", which expression shall include
      such other person as may from time to time be appointed as cash manager
      pursuant to this Agreement);

(2)   HOLMES FINANCING (NO. 6) PLC (registered number 4359738) a public limited
      company incorporated under the laws of England and Wales whose registered
      office is at Abbey National House, 2 Triton Square, Regents Place, London
      NW1 3AN (the "SIXTH ISSUER"); and

(3)   THE BANK OF NEW YORK whose principal office is at One Canada Square,
      London E14 5AL in its capacity as trustee (the "SIXTH ISSUER 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 Sixth Issuer Deed of Charge and the Sixth Issuer Trust Deed).

WHEREAS:

(A)   On the Sixth Issuer Closing Date the Sixth Issuer will issue the Sixth
      Issuer Notes. From the proceeds of the issue of the Sixth Issuer Notes,
      the Sixth Issuer shall make the Sixth Issuer Term Advances to Funding.

(B)   The Sixth Issuer Cash Manager is willing to provide cash management
      services to the Sixth Issuer and the Sixth Issuer Security Trustee on the
      terms and subject to the conditions contained in this Agreement.

IT IS HEREBY AGREED as follows:

1.    DEFINITIONS AND INTERPRETATION

1.1   The Amended and Restated Master Definitions and Construction Schedule and
      the Sixth Issuer Master Definitions and Construction Schedule, both signed
      for the purposes of identification by Allen & Overy and Slaughter and May
      on ___ October, 2002 (as the same may be amended, varied or supplemented
      from time to time with the consent of the parties hereto) are expressly
      and specifically incorporated into this Agreement and, accordingly, the
      expressions defined in the Amended and Restated Master Definitions and
      Construction Schedule and the Sixth Issuer Master Definitions and
      Construction Schedule (as so amended, varied or supplemented) shall,
      except where the context otherwise requires and save where otherwise
      defined herein, have the same meanings in this Agreement, including the
      Recitals hereto and this Agreement shall be construed in accordance with
      the interpretation provisions set out in CLAUSE 2 of the Amended and
      Restated Master Definitions and Construction Schedule and CLAUSE 2 of the
      Sixth Issuer Master Definitions and Construction Schedule. In the event of
      a conflict between the Amended and Restated Master Definitions and
      Construction Schedule and the Sixth Issuer Master Definitions and
      Construction Schedule, the Sixth Issuer Master Definitions and
      Construction Schedule shall prevail.

<PAGE>

                                       2

2.    APPOINTMENT OF SIXTH ISSUER CASH MANAGER

2.1   APPOINTMENT

      Until termination pursuant to CLAUSE 12, the Sixth Issuer and the Sixth
      Issuer Security Trustee (according to their respective estates and
      interests) each hereby appoints the Sixth Issuer Cash Manager as its
      lawful agent to provide the Sixth Issuer Cash Management Services set out
      in this Agreement, including in relation to the Sixth Issuer Notes to be
      issued by the Sixth Issuer. The Sixth Issuer Cash Manager in each case
      hereby accepts such appointment on the terms and subject to the conditions
      of this Agreement.

2.2   DUTIES PRESCRIBED BY TRANSACTION DOCUMENTS

      For the avoidance of doubt and in connection with the powers conferred
      under CLAUSE 2.1, save as expressly provided elsewhere in this Agreement,
      nothing herein shall be construed so as to give the Sixth Issuer Cash
      Manager any powers, rights, authorities, directions or obligations other
      than as specified in this Agreement or any of the other Transaction
      Documents.

2.3   APPOINTMENT CONDITIONAL UPON ISSUANCE OF SIXTH ISSUER NOTES

      The appointment pursuant to CLAUSE 2.1 is conditional upon the issue of
      the Sixth Issuer Notes and shall take effect upon and from the Sixth
      Issuer Closing Date automatically without any further action on the part
      of any person PROVIDED THAT if the issue of the Sixth Issuer Notes has not
      occurred by ___ October, 2002, or such later date as the Sixth Issuer and
      the Lead Manager may agree, this Agreement shall cease to be of further
      effect.

3.    THE SIXTH ISSUER CASH MANAGEMENT SERVICES

3.1   GENERAL

      The Sixth Issuer Cash Manager shall provide the services set out in this
      Agreement (including, without limitation, the SCHEDULES) (the "SIXTH
      ISSUER CASH MANAGEMENT SERVICES").

3.2   APPROVALS AND AUTHORISATIONS

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

3.3   COMPLIANCE WITH TRANSACTION DOCUMENTS, ETC.

      The Sixth Issuer Cash Management Services shall include procuring (so far
      as the Sixth Issuer Cash Manager, using its reasonable endeavours, is able
      so to do) compliance by the Sixth Issuer with all applicable legal
      requirements and with the terms of the Sixth Issuer Transaction Documents,
      PROVIDED ALWAYS THAT the Sixth Issuer Cash Manager shall

<PAGE>

                                       3

      not lend or provide any sum to the Sixth Issuer and that the Sixth Issuer
      Cash Manager shall have no liability whatsoever to the Sixth Issuer, the
      Sixth Issuer Security Trustee or any other person for any failure by the
      Sixth Issuer to make any payment due by any of them under any of the Sixth
      Issuer Transaction Documents (other than to the extent arising from any
      failure by the Sixth Issuer Cash Manager to perform any of its obligations
      under any of the Transaction Documents).

3.4   LIABILITY OF SIXTH ISSUER CASH MANAGER

(a)   The Sixth Issuer Cash Manager shall indemnify each of the Sixth Issuer and
      the Sixth Issuer Security Trustee on demand on an after Tax basis for any
      loss, liability, claim, expense or damage suffered or incurred by it in
      respect of the negligence, bad faith or wilful default of the Sixth Issuer
      Cash Manager in carrying out its functions as Sixth Issuer Cash Manager
      under, or as a result of a breach by the Sixth Issuer Cash Manager of, the
      terms and provisions of this Agreement or such other Transaction Documents
      to which the Sixth Issuer Cash Manager is a party (in its capacity as
      such) in relation to such functions.

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

4.    PAYMENTS, ACCOUNTS, LEDGERS

4.1   SIXTH ISSUER BANK ACCOUNT

(a)   The Sixth Issuer Cash Manager hereby confirms that the Sixth Issuer
      Transaction Accounts have been established on or before the date hereof
      and that mandates in the agreed form will apply thereto at the Sixth
      Issuer Closing Date. The Sixth Issuer Cash Manager undertakes (to the
      extent to which the same is within its control in its capacity as Sixth
      Issuer Cash Manager) that at the Sixth Issuer Closing Date the Sixth
      Issuer Transaction Accounts will be operative and that the Sixth Issuer
      Cash Manager will not knowingly create or permit to subsist any Security
      Interest in relation to the Sixth Issuer Transaction Accounts other than
      as created under or permitted pursuant to the Sixth Issuer Deed of Charge.

(b)   The Sixth Issuer Cash Manager shall procure that the following amounts are
      paid into the Sixth Issuer Transaction Accounts:

      (i)   all amounts of interest paid on the Sixth Issuer Term Advances;

      (ii)  all repayments of principal on the Sixth Issuer Term Advances;

      (iii) all amounts received by the Sixth Issuer pursuant to the Dollar
            Currency Swap Agreements, the Euro Currency Swap Agreements, and the
            Swiss Franc Currency Swap Agreement;

<PAGE>

                                       4

      (iv)  all Liquidity Drawings; and

      (v)   any other amounts whatsoever received by or on behalf of the Sixth
            Issuer after the Sixth Issuer Closing Date,

      and the Sixth Issuer Cash Manager shall procure that all interest earned
      on the Sixth Issuer Transaction Accounts and all investment proceeds from
      Authorised Investments purchased from amounts standing to the credit of
      the Sixth Issuer Bank Accounts are credited to such account. All amounts
      received by the Sixth Issuer denominated (i) in Sterling shall be paid
      into the Sixth Issuer Sterling Transaction Account; (ii) in Dollars shall
      be paid into the Sixth Issuer Dollar Account; (iii) in Euro shall be paid
      into the Sixth Issuer Euro Account; and (iv) in Swiss Francs shall be paid
      into the Fifth Issuer Swiss Franc Account.

(c)   Each of the payments into the Sixth Issuer Transaction Accounts referred
      to in CLAUSE 4.1(B) shall be made forthwith upon receipt by the Sixth
      Issuer or the Sixth Issuer Cash Manager of the amount in question.

(d)   For the avoidance of doubt, as soon as reasonably practicable after
      becoming aware of the same, the Sixth Issuer Cash Manager may, and shall,
      withdraw Cash from the Sixth Issuer Transaction Accounts, if, and to the
      extent that, such Cash was credited thereto in error and shall use its
      reasonable endeavours to ensure that such Cash is applied correctly
      thereafter.

(e)   The Sixth Issuer Cash Manager shall promptly notify each of the Sixth
      Issuer and the Sixth Issuer Security Trustee of any additional account
      which supplements or replaces any account specifically referred to in the
      definition of the "Sixth Issuer Transaction Accounts" in the Sixth Issuer
      Master Definitions and Construction Schedule.

(f)   Each of the Sixth Issuer Cash Manager and the Sixth Issuer undertakes
      that, so far as it is able to procure the same, the Sixth Issuer
      Transaction Accounts and all instructions and mandates in relation thereto
      will continue to be operative and will not, save as permitted pursuant to
      the Sixth Issuer Bank Account Agreement, be changed without prior written
      consent of the Sixth Issuer Security Trustee (such consent not to be
      unreasonably withheld or delayed). For the avoidance of doubt, the Sixth
      Issuer Cash Manager may change the authorised signatories in respect of
      any instructions or mandates, without the prior written consent of the
      Sixth Issuer Security Trustee, in accordance with the terms of the Sixth
      Issuer Bank Account Agreement.

4.2   WITHDRAWALS

(a)   The Sixth Issuer Cash Manager may make withdrawals on behalf of the Sixth
      Issuer from the Sixth Issuer Transaction Accounts, but only until receipt
      of a copy of a Sixth Issuer Note Enforcement Notice served by the Sixth
      Issuer Security Trustee on the Sixth Issuer, as permitted by this
      Agreement but shall not in carrying out its functions as Sixth Issuer Cash
      Manager under this Agreement otherwise make withdrawals from the Sixth
      Issuer Transaction Accounts.

(b)   Upon receipt of such a Sixth Issuer Note Enforcement Notice, no amount
      shall be withdrawn from the Sixth Issuer Transaction Accounts by the Sixth
      Issuer Cash Manager without the prior written consent of the Sixth Issuer
      Security Trustee.

<PAGE>

                                       5

4.3   CASH MANAGEMENT

      In administering the Sixth Issuer Transaction Accounts on behalf of the
      Sixth Issuer and the Sixth Issuer Security Trustee, the Sixth Issuer Cash
      Manager shall comply with the provisions of SCHEDULE 2 prior to receipt by
      the Sixth Issuer Cash Manager of a copy of any Sixth Issuer Note
      Enforcement Notice served on the Sixth Issuer. Following service of a
      Sixth Issuer Note Enforcement Notice, the Sixth Issuer Security Trustee or
      any Receiver appointed by the Sixth Issuer Security Trustee will
      administer the Sixth Issuer Transaction Accounts in accordance with the
      terms of the Sixth Issuer Deed of Charge.

5.    PAYMENTS UNDER SIXTH ISSUER CURRENCY SWAPS AND TERMINATION OF SIXTH ISSUER
      CURRENCY SWAPS

5.1   Subject to the order of priorities of payment set out in this Sixth Issuer
      Cash Management Agreement or, as the case may be, the Sixth Issuer Deed of
      Charge, on each Interest Payment Date, the Sixth Issuer, or the Sixth
      Issuer Cash Manager on its behalf, will pay amounts received in respect of
      the Sixth Issuer Series 1 Term Advances (after making payments ranking
      higher in the order or priority of payments) to the relevant Dollar
      Currency Swap Providers. Amounts received from the relevant Dollar
      Currency Swap Providers will be applied to pay amounts due to the holders
      of the relevant classes of Series 1 Sixth Issuer Notes in accordance with
      the Sixth Issuer Pre-Enforcement Priority of Payments or, as the case may
      be, the Sixth Issuer Post-Enforcement Priority of Payments.

5.2   Subject to the order or priorities of payment set out in this Sixth Issuer
      Cash Management Agreement or, as the case may be, the Sixth Issuer Deed of
      Charge, on each Interest Payment Date, the Sixth Issuer, or the Sixth
      Issuer Cash Manager on its behalf, will pay amounts received in respect of
      the Sixth Issuer Series 2 Term AAA Advance, the Sixth Issuer Series 2 Term
      AA Advance and the Sixth Issuer Series 2 Term BBB Advance (after making
      payments ranking higher in the order or priority of payments) to the
      relevant Dollar Currency Swap Providers. Amounts received from the
      relevant Dollar Currency Swap Providers will be applied to pay amounts due
      to the holders of the relevant classes of Series 2 Class A Sixth Issuer
      Notes, the Series 2 Class B Sixth Issuer Notes and the Series 2 Class C
      Sixth Issuer Notes in accordance with the Sixth Issuer Pre-Enforcement
      Priority of Payments or, as the case may be, the Sixth Issuer
      Post-Enforcement Priority of Payments.

5.3   Subject to the order of priorities of payment set out in this Sixth Issuer
      Cash Management Agreement or, as the case may be, the Sixth Issuer Deed of
      Charge, on each Interest Payment Date, the Sixth Issuer, or the Sixth
      Issuer Cash Manager on its behalf, will pay amounts received in respect of
      the Sixth Issuer Series 3 Term AAA Advance, the Sixth Issuer Series 3 Term
      AA Advance and the Sixth Issuer Series 3 Term BBB Advance (after making
      payments ranking higher in the order or priority of payments) to the Euro
      Currency Swap Provider. Amounts received from the Euro Currency Swap
      Provider will be respectively applied to pay amounts due to the holders of
      the Series 3 Class A Sixth Issuer Notes, the Series 3 Class B Sixth Issuer
      Notes and the Series 3 Class C Sixth Issuer Notes in accordance with the
      Sixth Issuer Pre-Enforcement Priority of Payments or, as the case may be,
      the Sixth Issuer Post-Enforcement Priority of Payments.

5.4   Subject to the order of priorities of payment set out in this Sixth Issuer
      Cash Management Agreement or, as the case may be, the Sixth Issuer Deed of
      Charge, on each Interest Payment Date, the Sixth Issuer, or the Sixth
      Issuer Cash Manager on its behalf, will pay amounts received in respect of
      the Sixth Issuer Series 4A1 Term AAA Advance, the Sixth Issuer Series 4
      Term AA Advance and the Sixth Issuer Series 4 Term BBB Advance (after
      making

<PAGE>

                                       6

      payments ranking higher in the order or priority of payments) to the Euro
      Currency Swap Provider and will pay amounts received in respect of the
      Series 4A2 Term AAA Advance to the Swiss Franc Currency Swap Provider.
      Amounts received from the Euro Currency Swap Provider will be respectively
      applied to pay amounts due to the holders of the Series 4 Class A1 Sixth
      Issuer Notes, the Series 4 Class B Sixth Issuer Notes and the Series 4
      Class C Sixth Issuer Notes and amounts received from the Swiss Franc
      Currency Swap Provider will be applied to pay amounts due to the holders
      of the Series 4 Class A2 Sixth Issuer Notes in accordance with the Sixth
      Issuer Pre-Enforcement Priority of Payments or, as the case may be, the
      Sixth Issuer Post-Enforcement Priority of Payments.

5.5   Subject to the order of priorities of payment set out in this Sixth Issuer
      Cash Management Agreement or, as the case may be, the Sixth Issuer Deed of
      Charge, on each Interest Payment Date, the Sixth Issuer, or the Sixth
      Issuer Cash Manager on its behalf, will pay amounts received in respect of
      the Sixth Issuer Series 5 Term AAA Advance, the Sixth Issuer Series 5 Term
      AA Advance and the Sixth Issuer Series 5 Term BBB Advance (after making
      payments ranking higher in the order or priority of payments) to the
      holders of the Series 5 Class A Sixth Issuer Notes, the Series 5 Class B
      Sixth Issuer Notes and the Series 5 Class C Sixth Issuer Notes in
      accordance with the Sixth Issuer Pre-Enforcement Priority of Payments or,
      as the case may be, the Sixth Issuer Post-Enforcement Priority of
      Payments.

5.6   If on or prior to the date of the earlier of (i) repayment in full of the
      Sixth Issuer Notes or (ii) the service of a Sixth Issuer Note Enforcement
      Notice, any of the Dollar Currency Swaps, Euro Currency Swaps or Swiss
      Franc Currency Swap is terminated, the Sixth Issuer Cash Manager (on
      behalf of the Sixth Issuer and the Sixth Issuer Security Trustee) shall
      purchase a replacement hedge in respect of the relevant class of Sixth
      Issuer Notes, against fluctuations in, as appropriate, (a) the relevant
      currency swap rate between Dollars and Sterling or the possible variance
      between LIBOR for three-month Sterling deposits and (i) LIBOR for
      one-month Dollar deposits in relation to the Series 1 Class A Sixth Issuer
      Notes and/or (ii) LIBOR for three-month Dollar deposits in relation to the
      Series 1 Class B Sixth Issuer Notes, the Series 1 Class C Sixth Issuer
      Notes, the Series 2 Class A Sixth Issuer Notes, the Series 2 Class B Sixth
      Issuer Notes, the Series 2 Class C Sixth Issuer Notes, the Series 4 Class
      A1 Sixth Issuer Notes, the Series 4 Class B Sixth Issuer Notes and the
      Series 4 Class C Sixth Issuer Notes or (b) the relevant currency swap rate
      between Euro and Sterling or the possible variance between LIBOR for
      three-month Sterling deposits and EURIBOR for three-month Euro deposits in
      relation to the Series 3 Class A Sixth Issuer Notes, the Series 3 Class B
      Sixth Issuer Notes and the Series 3 Class C Issuer Notes or (c) the
      relevant currency swap rate between Swiss Franc and Sterling or the
      possible variance between LIBOR for three-month Sterling deposits and a
      fixed rate of interest in relation to the Series 4 Class A2 Sixth Issuer
      Notes up to and including the Interest Payment Date in October 2007 and,
      thereafter, LIBOR for three-month Swiss Franc deposits and, in each case,
      on terms acceptable to the Rating Agencies and the Sixth Issuer and the
      Sixth Issuer Security Trustee and with a swap provider whom the Rating
      Agencies have previously confirmed in writing to the Sixth Issuer and the
      Sixth Issuer Security Trustee will not cause the then current ratings of
      the Sixth Issuer Notes to be downgraded. The Sixth Issuer may apply any
      early termination payment received from the relevant Dollar Currency Swap
      Provider, Euro Currency Swap Provider or Swiss Franc Currency Swap
      Provider, for such purpose.

5.7   If the Sixth Issuer receives a Refund Payment (as defined in "Sixth Issuer
      Revenue Receipts") then the Sixth Issuer, or the Sixth Issuer Cash Manager
      on its behalf, will pay over an amount equal to such Refund Payment to the
      relevant Sixth Issuer Swap Provider upon receipt.

<PAGE>

                                       7

6.    NO LIABILITY

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

7.    COSTS AND EXPENSES

      Subject to and in accordance with the Sixth Issuer Pre-Enforcement
      Priority of Payments or, as the case may be, the Sixth Issuer
      Post-Enforcement Priority of Payments the Sixth Issuer will on each
      Interest Payment Date reimburse the Sixth Issuer Cash Manager for all
      out-of-pocket costs, expenses and charges (together with any amounts in
      respect of Irrecoverable VAT due thereon) properly incurred by the Sixth
      Issuer Cash Manager in the performance of the Sixth Issuer Cash Management
      Services including any such costs, expenses or charges not reimbursed to
      the Sixth Issuer Cash Manager on any previous Interest Payment Date and
      the Sixth Issuer Cash Manager shall supply the Sixth Issuer with an
      appropriate VAT invoice issued by the Sixth Issuer Cash Manager or, if the
      Sixth Issuer Cash Manager has treated the relevant cost, expense or charge
      as a disbursement for VAT purposes, by the person making the supply.

8.    INFORMATION

8.1   USE OF I.T. SYSTEMS

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

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

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

      (ii)  except in so far as it would breach any other of its legal
            obligations, grant to any person to whom it may sub-contract or
            delegate the performance of all or any of its powers and obligations
            under this Agreement and/or to such person as the Sixth Issuer
            elects as a substitute cash manager in accordance with the terms of
            this Agreement a licence to use any proprietary software together
            with any updates which may be made thereto from time to time.

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

(d)   The Sixth Issuer Cash Manager shall pass to any person to whom it may
      sub-contract or delegate the performance of all or any of its powers and
      obligations under this Agreement and/or to such person as the Sixth Issuer
      elects as a substitute cash manager in accordance

<PAGE>

                                       8

      with the terms of this Agreement the benefit of any warranties relating to
      the above software insofar as the same are capable of assignment.

8.2   BANK ACCOUNT STATEMENTS

      The Sixth Issuer Cash Manager shall take all reasonable steps to ensure
      that it receives a monthly bank statement in relation to each of the Sixth
      Issuer Bank Accounts and that it furnishes a copy of such statements to
      the Sixth Issuer and the Sixth Issuer Security Trustee.

8.3   ACCESS TO BOOKS AND RECORDS

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

8.4   STATUTORY OBLIGATIONS

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

8.5   INFORMATION COVENANTS

(a)   The Sixth Issuer Cash Manager shall provide the Sixth Issuer, the Sixth
      Issuer Security Trustee, the Seller and the Rating Agencies quarterly with
      a report in, or substantially in, the form set out in SCHEDULE 3 in
      respect of the Sixth Issuer. Such quarterly report shall be delivered to
      the Sixth Issuer, the Sixth Issuer Security Trustee, the Seller and the
      Rating Agencies by the last Business Day of the month in which each
      Interest Payment Date occurs.

(b)   The Sixth Issuer Cash Manager shall provide, or procure the provision of,
      to the Sixth Issuer, the Sixth Issuer Security Trustee and the Rating
      Agencies copies of any annual returns or financial statements referred to
      in CLAUSE 8.4 as soon as reasonably practicable after the preparation
      thereof.

(c)   The Sixth Issuer Cash Manager shall notify the Rating Agencies in writing
      of the details of (i) any material amendment to the Sixth Issuer
      Transaction Documents to which the Sixth Issuer is a party; (ii) the
      occurrence of a Sixth Issuer Note Event of Default; and (iii) any other
      information relating to the Sixth Issuer Cash Manager as the Rating
      Agencies may reasonably request in connection with its obligations under
      this Agreement, PROVIDED THAT such request does not adversely interfere
      with the Sixth Issuer Cash Manager's day-to-day provision of the Sixth
      Issuer Cash Management Services under the other terms of this Agreement.

<PAGE>
                                       9

(d)   The Sixth Issuer Cash Manager shall, at the request of the Sixth Issuer
      Security Trustee, furnish the Sixth Issuer Security Trustee and the Rating
      Agencies with such other information relating to its business and
      financial condition as it may be reasonable for the Sixth Issuer Security
      Trustee to request in connection with this Agreement, PROVIDED THAT the
      Sixth Issuer Security Trustee shall not make such a request more than once
      every three months unless, in the belief of the Sixth Issuer Security
      Trustee, a Sixth Issuer Intercompany Loan Event of Default, Sixth Issuer
      Note Event of Default or Sixth Issuer Cash Manager Termination Event (as
      defined in CLAUSE 12.1) shall have occurred and is continuing or may
      reasonably be expected to occur and PROVIDED FURTHER THAT such request
      does not adversely interfere with the Sixth Issuer Cash Manager's
      day-to-day provision of the Sixth Issuer Cash Management Services under
      the other terms of this Agreement.

9.    REMUNERATION

9.1   FEE PAYABLE

      The Sixth Issuer shall pay to the Sixth Issuer Cash Manager for its
      services hereunder a cash management fee which shall be agreed in writing
      between the Sixth Issuer, the Sixth Issuer Security Trustee and the Sixth
      Issuer Cash Manager from time to time.

9.2   PAYMENT OF FEE

      The cash management fee referred to in CLAUSE 9.1 shall be paid to the
      Sixth Issuer Cash Manager in arrear on each Interest Payment Date in the
      manner contemplated by and in accordance with the provisions of the Sixth
      Issuer Pre-Enforcement Revenue Priority of Payments or, as the case may
      be, the Sixth Issuer Post-Enforcement Priority of Payments.

10.   COVENANTS OF SIXTH ISSUER CASH MANAGER

10.1  COVENANTS

      The Sixth Issuer Cash Manager hereby covenants with and undertakes to each
      of the Sixth Issuer and the Sixth Issuer Security Trustee that without
      prejudice to any of its specific obligations hereunder:

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

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

      (c)   it will use its reasonable endeavours to keep in force all licences,
            approvals, authorisations and consents which may be necessary in
            connection with the performance of the Sixth Issuer Cash Management
            Services and prepare and submit all necessary applications and
            requests for any further approval, authorisation, consent or licence
            required in connection with the performance of the Sixth Issuer Cash
            Management Services;

<PAGE>

                                       10

      (d)   save as otherwise agreed with the Sixth Issuer and the Sixth Issuer
            Security Trustee, it will provide free of charge to the Sixth Issuer
            during normal office hours office space, facilities, equipment and
            staff sufficient to fulfil the obligations of the Sixth Issuer under
            this Agreement;

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

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

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

10.2  DURATION OF COVENANTS

      The covenants of the Sixth Issuer Cash Manager in CLAUSE 10.1 shall remain
      in force until this Agreement is terminated but without prejudice to any
      right or remedy of the Sixth Issuer and/or the Sixth Issuer Security
      Trustee arising from breach of any such covenant prior to the date of
      termination of this Agreement.

11.   SIXTH ISSUER CASH MANAGEMENT SERVICES NON-EXCLUSIVE

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

12.   TERMINATION

12.1  SIXTH ISSUER CASH MANAGER TERMINATION EVENTS

      If any of the following events ("SIXTH ISSUER CASH MANAGER TERMINATION
      EVENTS") shall occur:

      (a)   default is made by the Sixth Issuer Cash Manager in the payment on
            the due date of any payment due and payable by it under this
            Agreement and such default continues unremedied for a period of
            three London Business Days after the earlier of the Sixth Issuer
            Cash Manager becoming aware of such default and receipt by the Sixth
            Issuer Cash Manager of written notice from the Sixth Issuer or the
            Sixth Issuer Security Trustee, as the case may be, requiring the
            same to be remedied; or

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

<PAGE>

                                       11

      (c)   while the Sixth Issuer Cash Manager is the Seller, an Insolvency
            Event occurs,

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

12.2  RESIGNATION OF SIXTH ISSUER CASH MANAGER

      The appointment of the Sixth Issuer Cash Manager under this Agreement may
      be terminated upon the expiry of not less than 12 months' notice of
      termination given by the Sixth Issuer Cash Manager to the Sixth Issuer and
      the Sixth Issuer Security Trustee PROVIDED THAT:

      (a)   the Sixth Issuer and the Sixth Issuer Security Trustee consent in
            writing to such termination;

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

      (c)   such substitute cash manager has cash management experience and is
            approved by the Sixth Issuer and the Sixth Issuer Security Trustee;

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

      (e)   the then current ratings (if any) of the Sixth Issuer Notes are not
            adversely affected as a result thereof, unless otherwise agreed by
            an Extraordinary Resolution (as defined in the Sixth Issuer Trust
            Deed) of the holders of the Class A Sixth Issuer Notes, the Class B
            Sixth Issuer Notes and the Class C Sixth Issuer Notes.

12.3  EFFECT OF TERMINATION

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

(b)   Upon termination of the appointment of the Sixth Issuer Cash Manager under
      this Agreement pursuant to this CLAUSE 12, the Sixth Issuer Cash Manager
      shall:

      (i)   forthwith deliver (and in the meantime hold on trust for, and to the
            order of, the Sixth Issuer or the Sixth Issuer Security Trustee, as
            the case may be) to the Sixth Issuer or the Sixth Issuer Security
            Trustee, as the case may be or as it shall direct, all books of

<PAGE>

                                       12

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

      (ii)  take such further action as the Sixth Issuer or the Sixth Issuer
            Security Trustee, as the case may be, may reasonably direct at the
            expense of the Sixth Issuer or the Sixth Issuer Security Trustee, as
            the case may be (including in relation to the appointment of a
            substitute cash manager) provided that the Sixth Issuer Security
            Trustee shall not be required to take or direct to be taken such
            further action unless it has been indemnified to its satisfaction;

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

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

12.4  NOTICE OF EVENT OF DEFAULT

      The Sixth Issuer Cash Manager shall deliver to the Sixth Issuer and the
      Sixth Issuer Security Trustee as soon as reasonably practicable but in any
      event within three Business Days of becoming aware thereof a notice of any
      Sixth Issuer Cash Manager Termination Event or any Sixth Issuer Note Event
      of Default or any event which with the giving of notice or expiry of any
      grace period or certification, as specified in such Sixth Issuer Cash
      Manager Termination Event or Sixth Issuer Note Event of Default would
      constitute the same.

12.5  GENERAL PROVISIONS RELATING TO TERMINATION

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

(b)   This Agreement shall terminate at such time as the Sixth Issuer Secured
      Obligations have been fully discharged.

(c)   On termination of the appointment of the Sixth Issuer Cash Manager under
      the provisions of this CLAUSE 12, the Sixth Issuer Cash Manager shall be
      entitled to receive all fees and other monies accrued up to (but
      excluding) the date of termination but shall not be entitled to any other
      or further compensation. The Sixth Issuer shall pay such monies so
      receivable by the Sixth Issuer Cash Manager in accordance with the Sixth
      Issuer Pre-Enforcement Revenue

<PAGE>

                                       13

      Priority of Payments or, as the case may be, the Sixth Issuer
      Post-Enforcement Priority of Payments, on the dates on which they would
      otherwise have fallen due hereunder. For the avoidance of doubt, such
      termination shall not affect the Sixth Issuer Cash Manager's rights to
      receive payment of all amounts (if any) due to it from the Sixth Issuer
      other than under this Agreement.

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

13.   FURTHER ASSURANCE

13.1  CO-OPERATION, ETC

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

13.2  POWERS OF ATTORNEY

      Without prejudice to the generality of CLAUSE 13.1, the Sixth Issuer and
      the Sixth Issuer Security Trustee shall upon request by the Sixth Issuer
      Cash Manager forthwith give to the Sixth Issuer Cash Manager such further
      powers of attorney or other written authorisations, mandates or
      instruments as are necessary to enable the Sixth Issuer Cash Manager to
      perform the Sixth Issuer Cash Management Services.

13.3  CHANGE OF SIXTH ISSUER SECURITY TRUSTEE

      In the event that there is any change in the identity of the Sixth Issuer
      Security Trustee or an additional Sixth Issuer Security Trustee is
      appointed in accordance with the Sixth Issuer Deed of Charge the Sixth
      Issuer Cash Manager shall execute such documents with any other parties to
      this Agreement and take such actions as such new Sixth Issuer Security
      Trustee may reasonably require for the purposes of vesting in such new
      Sixth Issuer Security Trustee the rights of the Sixth Issuer Security
      Trustee under this Agreement and under the Sixth Issuer Deed of Charge and
      releasing the retiring Sixth Issuer Security Trustee from further
      obligations thereunder and while any of the Sixth Issuer Notes remains
      outstanding shall give notice thereof to the Rating Agencies.

13.4  NO OBLIGATION ON SIXTH ISSUER SECURITY TRUSTEE

      Nothing herein contained shall impose any obligation or liability on the
      Sixth Issuer Security Trustee to assume or perform any of the obligations
      of the Sixth Issuer or the Sixth Issuer Cash Manager hereunder or render
      it liable for any breach thereof.

14.   MISCELLANEOUS

14.1  NO SET-OFF

      The Sixth Issuer Cash Manager agrees that it will not:

(a)   set off or purport to set off any amount which either the Sixth Issuer is
      or will become obliged to pay to it under this Agreement against any
      amount from time to time standing to the credit of or to be credited to
      the Sixth Issuer Bank Accounts; or

<PAGE>

                                       14

(b)   make or exercise any claims or demands, any rights of counterclaim or any
      other equities against or withhold payment of any and all sums of money
      which may at any time and from time to time standing to the credit of the
      Sixth Issuer Bank Accounts.

14.2  NO PETITION

      The Sixth Issuer Cash Manager agrees that for so long as any Sixth Issuer
      Notes are outstanding it will not petition or commence proceedings for the
      administration or winding up of the Sixth Issuer or participate in any ex
      parte proceedings with regard thereto.

14.3  NO RECOURSE

(a)   In relation to all sums due and payable by the Sixth Issuer to the Sixth
      Issuer Cash Manager, the Sixth Issuer Cash Manager agrees that it shall
      have recourse only to sums paid to or received by (or on behalf of) the
      Sixth Issuer pursuant to the provisions of the Sixth Issuer Transaction
      Documents.

(b)   For the avoidance of doubt, the Sixth Issuer Security Trustee shall not be
      liable to pay any amounts due under CLAUSES 7 and 9, but without prejudice
      to the obligations of the Sixth Issuer, or any Receiver appointed pursuant
      to the Sixth Issuer Deed of Charge in respect of such amounts.

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

15.   CONFIDENTIALITY

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

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

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

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

      (d)   to any extent that the recipient is required to disclose the same
            pursuant to any law or order of any court or pursuant to any
            direction, request or requirement (whether or

<PAGE>

                                       15

            not having the force of law) of any central bank or any governmental
            or other authority (including, without limitation, any official bank
            examiners or regulators);

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

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

16.   NOTICES

      Any notices to be given pursuant to this Agreement to any of the parties
      hereto shall be sufficiently served if sent by prepaid first class post,
      by hand or facsimile transmission and shall be deemed to be given (in the
      case of facsimile transmission) when despatched, (where delivered by hand)
      on the day of delivery if delivered before 17.00 hours on a Business Day
      or on the next Business Day if delivered thereafter or on a day which is
      not a Business Day 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 Sixth Issuer Cash Manager, to Abbey National plc
            at Abbey National House, 2 Triton Square, Regents Place, London NW1
            3AN (facsimile number (44) 20 [_]) for the attention of the Company
            Secretary with a copy to Abbey National plc, c/o Abbey House ([_]),
            201 Grafton Gate East, Milton Keynes MK9 1AN (facsimile number (44)
            1908 [_]) for the attention of the Securitisation Team, Risk
            Operations;

      (b)   in the case of the Sixth Issuer, to Holmes Financing (No. 6) PLC at
            Abbey National House, 2 Triton Square, Regents Place, London, NW1
            3AN (facsimile number (44) 20 [_]) for the attention of the Company
            Secretary with a copy to Abbey National plc c/o Abbey House ([_]),
            201 Grafton Gate East, Milton Keynes MK9 1AN (facsimile number (44)
            1908 [_]) for the attention of Securitisation Team, Risk Operations;
            and

      (c)   in the case of the Sixth Issuer Security Trustee, to The Bank of New
            York, One Canada Square, London E14 5AL (facsimile number ____) for
            the attention of ____,

      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 written notice in accordance with the provisions of this
      CLAUSE 16.

17.   VARIATION AND WAIVER

      No variation or waiver of this Agreement shall be effective unless it is
      in writing and signed by (or by some person duly authorised by) each of
      the parties. No single or partial exercise

<PAGE>

                                       16

      of, or failure or delay in exercising, any right under this Agreement
      shall constitute a waiver or preclude any other or further exercise of
      that or any other right.

18.   NO PARTNERSHIP

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

19.   ASSIGNMENT

19.1  ASSIGNMENT BY THE SIXTH ISSUER

      The Sixth Issuer may not assign or transfer any of its rights and
      obligations under this Agreement without the prior written consent of each
      of the Sixth Issuer Security Trustee and the Sixth Issuer Cash Manager,
      except that the Sixth Issuer may assign its respective rights hereunder
      without such consent pursuant to the Sixth Issuer Deed of Charge.

19.2  NO ASSIGNMENT BY SIXTH ISSUER CASH MANAGER

      The Sixth Issuer Cash Manager may not assign or transfer any of its rights
      and obligations under this Agreement without the prior written consent of
      the Sixth Issuer and the Sixth Issuer Security Trustee, such consent not
      to be unreasonably withheld or delayed.

20.   EXCLUSION OF THIRD PARTY RIGHTS

      The parties to this Agreement do not intend that any term of this
      Agreement should be enforced, by virtue of the Contracts (Rights of Third
      Parties) Act 1999, by any person who is not a party to this Agreement.

21.   COUNTERPARTS

      The Agreement may be executed manually or by facsimile, in one or more
      counterparts.

22.   GOVERNING LAW

      This Agreement is governed by, and shall be construed in accordance with,
      the laws of England.

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

<PAGE>

                                       17

                                   SCHEDULE 1

                          THE CASH MANAGEMENT SERVICES

The Sixth Issuer Cash Manager shall:

(a)   operate the Sixth Issuer Bank Accounts and ensure that payments are made
      into and from such accounts in accordance with this Agreement, the Sixth
      Issuer Deed of Charge, the Sixth Issuer Liquidity Facility Agreement, the
      Sixth Issuer Bank Account Agreement and any other relevant Sixth Issuer
      Transaction Document, PROVIDED HOWEVER THAT nothing herein shall require
      the Sixth Issuer Cash Manager to make funds available to the Sixth Issuer
      to enable such payments to be made other than as expressly required by the
      provisions of this Agreement;

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

(c)   subject to any applicable law assist the Auditors of the Sixth Issuer and
      provide such information to them as they may reasonably request for the
      purpose of carrying out their duties as auditors;

(d)   make all filings, give all notices and make all registrations and other
      notifications required in the day-to-day operation of the business of the
      Sixth Issuer or required to be given by the Sixth Issuer pursuant to the
      Sixth Issuer Transaction Documents;

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

(f)   without prejudice to the role of and in conjunction with the Sixth Issuer
      Corporate Services Provider under the Sixth Issuer Corporate Services
      Agreement, keep general books of account and records of the Sixth Issuer;
      provide accounting services, including reviewing receipts and payments,
      supervising and assisting in the preparation of interim statements and
      final accounts and supervising and assisting in the preparation of tax
      returns;

(g)   without prejudice to the role of and in conjunction with the Sixth Issuer
      Corporate Services Provider under the Sixth Issuer Corporate Services
      Agreement, provide or procure the provision of company secretarial and
      administration services to the Sixth Issuer including the keeping of all
      registers and the making of all returns and filings required by applicable
      law or by UK regulatory authorities, co-operate in the convening of board
      and general meetings and provide registered office facilities;

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

      (i)   all Taxes which may be due or payable by the Sixth Issuer;

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

<PAGE>

                                       18

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

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

(i)   with the prior written consent of the Sixth Issuer Security Trustee, the
      Sixth Issuer Cash Manager may invest monies standing from time to time to
      the credit of the Sixth Issuer Bank Accounts in Authorised Investments,
      subject to the following provisions:

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

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

      (iii) all income or proceeds following the disposal or maturity of
            Authorised Investments shall be credited to the Sixth Issuer Bank
            Account from which monies were withdrawn to make the relevant
            Authorised Investment.

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

(j)   (i)   if necessary, perform all currency conversions free of charge, cost
            or expense at the relevant exchange rate;

      (ii)  if necessary, perform all interest rate conversions (whether it be a
            conversion from a floating rate of interest to a fixed rate of
            interest, or vice versa) free of charge, cost or expense at the
            relevant interest swap rate; and

      (iii) For the purposes of any calculations referred to in SUB-PARAGRAPHS
            (I) and (II) above, all percentages resulting from such calculations
            will be rounded, if necessary, to the nearest one hundred-thousandth
            of a percentage point (e.g. 9.876541% (or 0.09876541) being rounded
            down to 9.87654% (or 0.0987654)) and (ii) any currency amounts used
            in or resulting from such calculations will be rounded in accordance
            with the relevant market practice;

(k)   make all returns and filings required to be made by the Sixth Issuer and
      provide or procure the provision of company secretarial and administration
      services to the Sixth Issuer; and

(l)   arrange payment of all fees to the London Stock Exchange plc or, as
      applicable, the UK Listing Authority of the Financial Services Authority
      and the Swiss Exchange.

<PAGE>

                                       19

                                   SCHEDULE 2

                   CASH MANAGEMENT AND MAINTENANCE OF LEDGERS

1.    DETERMINATION

(a)   On each Sixth Issuer Note Determination Date, the Sixth Issuer Cash
      Manager shall determine each of the following in accordance with this
      PARAGRAPH 1:

      (i)   the amount of any Sixth Issuer Principal Receipts and Sixth Issuer
            Revenue Receipts available as at the following Interest Payment
            Date;

      (ii)  the amount of any Sixth Issuer Liquidity Shortfall on the following
            Interest Payment Date; and

      (iii) the Principal Amount Outstanding of the Sixth Issuer Notes, the Pool
            Factor, and the Note Principal Payment of the Sixth Issuer Notes in
            accordance with the Conditions.

(b)   The Sixth Issuer Cash Manager may make all the determinations referred to
      in PARAGRAPH 1(A) on the basis of any reasonable and proper assumptions as
      the Sixth Issuer Cash Manager considers appropriate (including without
      limitation as to the amount of any payments to be made under PARAGRAPH 3
      below during the period from and including the Sixth Issuer Note
      Determination Date to but excluding the next Interest Payment Date).

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

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

2.    NOTIFICATION OF DETERMINATIONS

(a)   The Sixth Issuer Cash Manager will cause each determination of Sixth
      Issuer Available Funds and any Sixth Issuer Liquidity Shortfall to be
      notified forthwith to the Sixth Issuer.

(b)   The Sixth Issuer Cash Manager shall procure that the determinations and
      notifications required to be made pursuant to CONDITION 5(C) of the
      Conditions are made.

3.    PRIORITY OF PAYMENTS FOR SIXTH ISSUER REVENUE RECEIPTS

      Sixth Issuer Revenue Receipts will be applied, as applicable:

      (i)   on each Interest Payment Date; or

      (ii)  on each day when due in respect of amounts due to third parties
            pursuant to PARAGRAPH (B) below or amounts due to the Sixth Issuer
            Account Banks under the Sixth Issuer Bank Account Agreement pursuant
            to PARAGRAPH (D) below,

<PAGE>

                                       20

      in each case until enforcement of the Sixth Issuer Security pursuant to
      the Sixth Issuer Deed of Charge or until such time as there are no Sixth
      Issuer Secured Obligations outstanding, in making such payments and
      provisions in the following order of priority (in each case only if and to
      the extent that payments or provisions of a higher priority have been made
      in full) (the "SIXTH ISSUER PRE-ENFORCEMENT REVENUE PRIORITY OF
      PAYMENTS"):

      (a)   firstly, in or towards satisfaction pro rata and pari passu
            according to the respective amounts thereof of:

            (i)   any remuneration then due and payable to the Sixth Issuer
                  Security Trustee and any amounts then due and payable or to
                  become due and payable during the immediately following
                  Interest Period to the Sixth Issuer Security Trustee under the
                  Sixth Issuer Deed of Charge together with interest and any
                  amount in respect of VAT as provided therein;

            (ii)  any remuneration then due and payable to the Note Trustee and
                  any amounts then due and payable or to become due and payable
                  during the immediately following Interest Period to the Note
                  Trustee under the provisions of the Sixth Issuer Trust Deed,
                  together with interest and any amount in respect of VAT as
                  provided therein; and

            (iii) any remuneration then due and payable to the Agent Bank the
                  Paying Agents, the Swiss Paying Agents, the Registrar and the
                  Transfer Agent and any costs, charges, liabilities and
                  expenses then due and payable or to become due and payable
                  during the immediately following Interest Period to them under
                  the provisions of the Sixth Issuer Paying Agent and Agent Bank
                  Agreement and the Issuer Swiss Paying Agent and Agent Bank
                  Agreement (as applicable) together with any amount in respect
                  of VAT as provided therein;

      (b)   secondly, to pay any amounts due and payable by the Sixth Issuer to
            third party creditors and incurred without breach by the Sixth
            Issuer of the Transaction Documents to which it is a party (and for
            which payment has not been provided for elsewhere) and to provide
            for any such amounts expected to become due and payable by the Sixth
            Issuer during the immediately following Interest Period and to pay
            or discharge any liability of the Sixth Issuer for corporation tax
            on any chargeable income, profit or gain of the Sixth Issuer;

      (c)   thirdly, to pay all amounts of principal, interest and commitment
            fees and any Additional Percentage due and payable to the Sixth
            Issuer Liquidity Facility Provider under the Sixth Issuer Liquidity
            Facility Agreement other than (i) any principal repayments due to
            the Sixth Issuer Liquidity Facility Provider as a result of a Sixth
            Issuer Liquidity Facility Drawing made for the purposes of paying
            principal amounts due on the Series 1 Class A Sixth Issuer Notes
            and/or the Series 2 Class A Sixth Issuer Notes and/or the Series 3
            Class A Sixth Issuer Notes and/or the Series 4 Class A Sixth Issuer
            Notes and (ii) any Sixth Issuer Liquidity Subordinated Amounts;

      (d)   fourthly, to pay pro rata and pari passu according to the respective
            amounts thereof of:

<PAGE>

                                       21

            (i)   any remuneration then due and payable to the Sixth Issuer Cash
                  Manager and any costs, charges, liabilities and expenses then
                  due and payable or to become due and payable during the
                  immediately following Interest Period to the Sixth Issuer Cash
                  Manager under the provisions of the Sixth Issuer Cash
                  Management Agreement, together with VAT thereon as provided
                  therein;

            (ii)  any remuneration then due and payable to the Sixth Issuer
                  Corporate Services Provider and any costs, charges,
                  liabilities and expenses then due and payable or to become due
                  and payable during the immediately following Interest Period
                  to the Sixth Issuer Corporate Services Provider under the
                  Sixth Issuer Corporate Services Agreement together with
                  interest and any amount in respect of VAT as provided therein;
                  and

            (iii) any remuneration then due and payable to the Sixth Issuer
                  Account Banks and any costs, charges, liabilities and expenses
                  then due and payable or to become due and payable during the
                  immediately following Interest Period to the Sixth Issuer
                  Account Banks under the Sixth Issuer Bank Account Agreement
                  together with interest and any amount in respect of VAT as
                  provided therein;

      (e)   fifthly, to pay in no order of priority between them and pro rata
            according to the respective amounts thereof of:

            (i)   those amounts due and payable by the Sixth Issuer to the
                  Series 1 Class A Dollar Currency Swap Providers pursuant to
                  the Series 1 Class A Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 1 Class A Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 1 Class A Dollar Currency
                  Swap Providers, interest due and payable on the Series 1 Class
                  A Sixth Issuer Notes;

            (ii)  those amounts due and payable by the Sixth Issuer to the
                  Series 2 Class A Dollar Currency Swap Providers pursuant to
                  the Series 2 Class A Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 2 Class A Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 2 Class A Dollar Currency
                  Swap Providers, interest due and payable on the Series 2 Class
                  A Sixth Issuer Notes;

            (iii) those amounts due and payable by the Sixth Issuer to the
                  Series 3 Class A Euro Currency Swap Provider pursuant to the
                  Series 3 Class A Euro Currency Swap Agreement (except for any
                  termination payment due and payable by the Sixth Issuer
                  following a Sixth Issuer Swap Provider Default by the Series 3
                  Class A Euro Currency Swap Provider), and from the proceeds
                  received on each Interest Payment Date from the Series 3 Class
                  A Euro Currency Swap Provider, interest due and payable on the
                  Series 3 Class A Sixth Issuer Notes;

<PAGE>
                                       22

            (iv)  those amounts due and payable by the Sixth Issuer to the
                  Series 4 Class A1 Dollar Currency Swap Providers pursuant to
                  the Series 4 Class A1 Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 4 Class A1 Dollar Currency Swap Providers), and from
                  the proceeds received from the Series 4 Class A Dollar
                  Currency Swap Providers, interest due and payable by the Sixth
                  Issuer on the Series 4 Class A1 Sixth Issuer Notes;

            (v)   those amounts due and payable by the Sixth Issuer to the
                  Series 4 Class A2 Swiss Franc Currency Swap Provider pursuant
                  to the Series 4 Class A2 Swiss Franc Currency Swap Agreement
                  (except for any termination payment due and payable by the
                  Sixth Issuer following a Sixth Issuer Swap Provider Default by
                  the Series 4 Class A2 Swiss Franc Currency Swap Provider), and
                  from the proceeds received from the Series 4 Class A2 Swiss
                  Franc Currency Swap Provider, interest due and payable by the
                  Sixth Issuer on the Series 4 Class A2 Sixth Issuer Notes; and

            (vi)  interest due and payable by the Sixth Issuer on the Series 5
                  Class A Sixth Issuer Notes;

      (f)   sixthly, to pay pro rata and pari passu according to the respective
            amounts thereof of:

            (i)   those amounts due and payable by the Sixth Issuer to the
                  Series 1 Class B Dollar Currency Swap Providers pursuant to
                  the Series 1 Class B Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 1 Class B Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 1 Class B Dollar Currency
                  Swap Providers, interest due and payable on the Series 1 Class
                  B Sixth Issuer Notes;

            (ii)  those amounts due and payable by the Sixth Issuer to the
                  Series 2 Class B Dollar Currency Swap Providers pursuant to
                  the Series 2 Class B Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 2 Class B Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 2 Class B Dollar Currency
                  Swap Providers, interest due and payable on the Series 2 Class
                  B Sixth Issuer Notes;

            (iii) those amounts due and payable by the Sixth Issuer to the
                  Series 3 Class B Euro Currency Swap Provider pursuant to the
                  Series 3 Class B Euro Currency Swap Agreement (except for any
                  termination payment due and payable by the Sixth Issuer
                  following a Sixth Issuer Swap Provider Default by the Series 3
                  Class B Euro Currency Swap Provider), and from the proceeds
                  received from the Series 3 Class B Euro Currency Swap
                  Provider, interest due and payable on the Series 3 Class B
                  Sixth Issuer Notes;

<PAGE>

                                       23

            (iv)  those amounts due and payable by the Sixth Issuer to the
                  Series 4 Class B Dollar Currency Swap Providers pursuant to
                  the Series 4 Class B Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 4 Class B Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 4 Class B Dollar Currency
                  Swap Providers, interest due and payable on the Series 4 Class
                  B Sixth Issuer Notes; and

            (v)   interest due and payable by the Sixth Issuer on the Series 5
                  Class B Sixth Issuer Notes;

      (g)   seventhly, to pay pro rata and pari passu according to the
            respective amounts thereof of:

            (i)   those amounts due and payable by the Sixth Issuer to the
                  Series 1 Class C Dollar Currency Swap Providers pursuant to
                  the Series 1 Class C Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by
                  Series 1 Class C Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 1 Class C Dollar Currency
                  Swap Providers, interest due and payable on the Series 1 Class
                  C Sixth Issuer Notes;

            (ii)  those amounts due and payable by the Sixth Issuer to the
                  Series 2 Class C Dollar Currency Swap Providers pursuant to
                  the Series 2 Class C Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 2 Class C Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 2 Class C Dollar Currency
                  Swap Provider, interest due and payable on the Series 2 Class
                  C Sixth Issuer Notes;

            (iii) those amounts due and payable by the Sixth Issuer to the
                  Series 3 Class C Euro Currency Swap Provider pursuant to the
                  Series 3 Class C Euro Currency Swap Agreement (except for any
                  termination payment due and payable by the Sixth Issuer
                  following a Sixth Issuer Swap Provider Default by the Series 3
                  Class C Euro Currency Swap Provider), and from the proceeds
                  received from the Series 3 Class C Euro Currency Swap
                  Provider, interest due and payable on the Series 3 Class C
                  Sixth Issuer Notes;

            (iv)  those amounts due and payable by the Sixth Issuer to the
                  Series 4 Class C Dollar Currency Swap Providers pursuant to
                  the Series 4 Class C Dollar Currency Swap Agreement (except
                  for any termination payment due and payable by the Sixth
                  Issuer following a Sixth Issuer Swap Provider Default by the
                  Series 4 Class C Dollar Currency Swap Providers), and from the
                  proceeds received from the Series 4 Class C Dollar Currency
                  Swap Providers, interest due and payable on the Series 4 Class
                  C Sixth Issuer Notes; and

            (v)   interest due and payable by the Sixth Issuer on the Series 5
                  Class C Sixth Issuer Notes;

<PAGE>

                                       24

      (h)   eighthly, to pay pro rata and pari passu according to the respective
            amounts thereof of:

            (i)   any termination payments due and payable by the Sixth Issuer
                  under the Series 1 Class A Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 1 Class A Dollar Currency Swap
                  Providers;

            (ii)  any termination payments due and payable by the Sixth Issuer
                  under the Series 2 Class A Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 2 Class A Dollar Currency Swap
                  Providers;

            (iii) any termination payments due and payable by the Sixth Issuer
                  under the Series 3 Class A Euro Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 3 Class A Euro Currency Swap Provider;

            (iv)  any termination payments due and payable by the Sixth Issuer
                  under the Series 4 Class A1 Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 4 Class A1 Dollar Currency Swap
                  Providers; and

            (v)   any termination payments due and payable by the Sixth Issuer
                  under the Series 4 Class A2 Swiss Franc Currency Swap
                  Agreement, following the occurrence of a Sixth Issuer Swap
                  Provider Default by the Series 4 Class A2 Swiss Franc Currency
                  Swap Provider;

      (i)   ninthly, to pay pro rata and pari passu according to the respective
            amounts thereof of:

            (i)   any termination payments due and payable by the Sixth Issuer
                  under the Series 1 Class B Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 1 Class B Dollar Currency Swap
                  Providers;

            (ii)  any termination payments due and payable by the Sixth Issuer
                  under the Series 2 Class B Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 2 Class B Dollar Currency Swap
                  Providers;

            (iii) any termination payments due and payable by the Sixth Issuer
                  under the Series 3 Class B Euro Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 3 Class B Euro Currency Swap Provider;
                  and

            (iv)  any termination payments due and payable by the Sixth Issuer
                  under the Series 4 Class B Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 4 Class Dollar Currency Swap Providers;

<PAGE>

                                       25

      (j)   tenthly, to pay pro rata and pari passu according to the respective
            amounts thereof of:

            (i)   any termination payments due and payable by the Sixth Issuer
                  under the Series 1 Class C Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 1 Class C Dollar Currency Swap
                  Providers;

            (ii)  any termination payments due and payable by the Sixth Issuer
                  under the Series 2 Class C Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series Class C Dollar Currency Swap Providers;

            (iii) any termination payments due and payable by the Sixth Issuer
                  under the Series 3 Class C Euro Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 2 Class C Euro Currency Swap Provider;
                  and

            (iv)  any termination payments due and payable by the Sixth Issuer
                  under the Series 4 Class C Dollar Currency Swap Agreement,
                  following the occurrence of a Sixth Issuer Swap Provider
                  Default by the Series 4 Class C Dollar Currency Swap
                  Providers;

      (k)   eleventhly, in or toward satisfaction of any Sixth Issuer Liquidity
            Subordinated Amounts;

      (l)   twelfthly, to pay the Sixth Issuer an amount equal to 0.01 per cent.
            of the interest received on the Sixth Issuer Term Advances to be
            retained by the Sixth Issuer as profit; and

      (m)   thirteenthly, to pay to shareholders of the Sixth Issuer any
            dividend declared by the Sixth Issuer.

4.    PRIORITY OF PAYMENTS FOR SIXTH ISSUER PRINCIPAL RECEIPTS

      Subject to CONDITION 5 of the Sixth Issuer Notes, until enforcement of the
      Sixth Issuer Security pursuant to the Sixth Issuer Deed of Charge or until
      such time as there are no Sixth Issuer Notes outstanding, Sixth Issuer
      Principal Receipts will be applied firstly in and towards satisfaction of
      any amounts drawn under the Sixth Issuer Liquidity Facility in order to
      repay principal amounts due on the Series 1 Class A Sixth Issuer Notes
      and/or the Series 2 Class A Sixth Issuer Notes and/or the Series 3 Class A
      Sixth Issuer Notes and/or the Series 4 Class A Sixth Issuer Notes in the
      circumstances permitted by the terms of the Sixth Issuer Liquidity
      Facility Agreement, and then, subject thereto, to repay the Sixth Issuer
      Notes as follows:

      (a)   the Series 1 Class A Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date (i) in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 1 Term AAA Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate, and (ii) if there is a shortfall in the
            principal amount due and payable on the Series 1 Class A Sixth
            Issuer Notes on the Scheduled Repayment Dates in [July 2003] and
            [October 2003], from amounts

<PAGE>

                                       26

            available to be drawn under the Sixth Issuer Liquidity Facility to
            repay the Series 1 Class A Sixth Issuer Notes after converting the
            same into Dollars at the relevant Dollar Currency Swap Rate;

      (b)   the Series 2 Class A Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date (i) in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 2 Term AAA Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate, and (ii) if there is a shortfall in the
            principal amount due and payable on the Series 2 Class A1 Sixth
            Issuer Notes, on the Scheduled Repayment Date in [April 2005], from
            amounts available to be drawn under the Sixth Issuer Liquidity
            Facility to repay the Series 2 Class A Sixth Issuer Notes after
            converting the same into Dollars at the relevant Dollar Currency
            Swap Rate;

      (c)   the Series 3 Class A Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date (i) in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 3 Term AAA Advance, converted into Euro at the relevant Euro
            Currency Swap Rate, and (ii) if there is a shortfall in the
            principal amount due and payable on the Series 3 Class A Sixth
            Issuer Notes, on the Scheduled Repayment Date in [April 2007], from
            amounts available to be drawn under the Sixth Issuer Liquidity
            Facility to repay the Series 3 Class A Sixth Issuer Notes after
            converting the same into Euro at the relevant Euro Currency Swap
            Rate;

      (d)   the Series 4 Class A1 Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date (i) in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 4A1 Term AAA Advance, converted into Dollar at the relevant
            Dollars Currency Swap Rate and (ii) if there is a shortfall in the
            principal amount due and payable on the Series 4 Class A1 Sixth
            Issuer Notes, on the Scheduled Repayment Date in [October 2007],
            from the amounts to be drawn under the Sixth Issuer Liquidity
            Facility to repay the Series 4 Class A1 Sixth Issuer Notes after
            converting the same into Dollars at the relevant Dollars Currency
            Swap Rate;

      (e)   the Series 4 Class A2 Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date (i) in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 4A2 Term AAA Advance, converted into Swiss Francs at the
            relevant Swiss Franc Currency Swap Rate and (ii) if there is a
            shortfall in the principal amount due and payable on the Series 4
            Class A2 Sixth Issuer Notes, on the Scheduled Repayment Date in
            [October 2007], from the amounts to be drawn under the Sixth Issuer
            Liquidity Facility to repay the Series 4 Class A2 Sixth Issuer Notes
            after converting the same into Swiss Francs at the relevant Swiss
            Franc Currency Swap Rate;

      (f)   the Series 5 Class A Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 5 Term AAA Advance;

      (g)   the Series 1 Class B Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 1 Term AA Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate;

<PAGE>

                                       27

      (h)   the Series 2 Class B Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 2 Term AA Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate;

      (i)   the Series 3 Class B Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 3 Term AA Advance, converted into Euro at the relevant Euro
            Currency Swap Rate;

      (j)   the Series 4 Class B Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 4 Term AA Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate;

      (k)   the Series 5 Class B Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 5 Term AA Advance;

      (l)   the Series 1 Class C Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 1 Term BBB Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate;

      (m)   the Series 2 Class C Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 2 Term BBB Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate;

      (n)   the Series 3 Class C Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 3 Term BBB Advance, converted into Euro at the relevant Euro
            Currency Swap Rate;

      (o)   the Series 4 Class C Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 4 Term BBB Advance, converted into Dollars at the relevant
            Dollar Currency Swap Rate; and

      (p)   the Series 5 Class C Sixth Issuer Notes shall be redeemed on each
            Interest Payment Date in an amount equal to the amount, if any,
            repaid on that Interest Payment Date in respect of the Sixth Issuer
            Series 5 Term BBB Advance.

5.    SIXTH ISSUER LIQUIDITY FACILITY AGREEMENT

      Upon satisfaction of the conditions to drawing set out in CLAUSES 2.1 and
      2.2 of the Sixth Issuer Liquidity Facility Agreement and to the extent
      that a Sixth Issuer Liquidity Shortfall exists, the Sixth Issuer Cash
      Manager on behalf of the Sixth Issuer shall serve a Sixth Issuer Liquidity
      Facility Drawdown Notice and take all steps required in order to make on
      any Interest Payment Date:

<PAGE>

                                       28

      (a)   a drawing under the Sixth Issuer Liquidity Facility in an amount
            sufficient to enable the payments or provisions referred to in
            PARAGRAPH 3(A) and PARAGRAPHS 3(C) to (G) inclusive of the Sixth
            Issuer Pre-Enforcement Revenue Priority of Payments to be made in
            full on that Interest Payment Date; and/or

      (b)   to pay principal due on the Series 1 Class A Sixth Issuer Notes
            and/or the Series 2 Class A Sixth Issuer Notes and/or the Series 3
            Class A Sixth Issuer Notes and/or the Series 4 Class A Sixth Issuer
            Notes provided that:

            (i)   following the occurrence of a Non-Asset Trigger Event, the
                  Sixth Issuer Liquidity Facility will be available to repay
                  principal amounts due on the Series 1 Class A Sixth Issuer
                  Notes and/or the Series 2 Class A Sixth Issuer Notes and/or
                  the Series 3 Class A Sixth Issuer Notes and/or the Series 4
                  Class A Sixth Issuer Notes on their Final Maturity Date only;
                  and

            (ii)  following the occurrence of an Asset Trigger Event, the Sixth
                  Issuer Liquidity Facility will not be available to repay
                  principal amounts due on the Series 1 Class A Sixth Issuer
                  Notes or the Series 2 Class A Sixth Issuer Notes or the Series
                  3 Class A Sixth Issuer Notes or the Series 4 Class A Sixth
                  Issuer Notes.

6.    RECORDS

      In addition, the Sixth Issuer Cash Manager shall ensure that a separate
      record is kept of any amount drawn under the Sixth Issuer Liquidity
      Facility pursuant to the Sixth Issuer Liquidity Facility Agreement and any
      amount received from the Dollar Currency Swap Providers, the Euro Currency
      Swap Provider and the Swiss Franc Currency Swap Provider and pursuant to,
      respectively, the Dollar Currency Swap Agreements, the Euro Currency Swap
      Agreements and the Swiss Franc Currency Swap Agreement.

<PAGE>

                                       29

                                   SCHEDULE 3

                      FORM OF SIXTH ISSUER QUARTERLY REPORT

HOLMES FINANCING (NO. 6) PLC
PROFIT & LOSS ACCOUNT

PERIOD ENDED

                                                             This        Prior
                                                            Quarter     Quarter

                                                            (pound)      (pound)
                                                           ---------------------
Interest Receivable - Inter-Company Loan                        0           0
Interest Receivable - Cash Deposits
                                                           ---------------------

Interest Payable - Notes
Interest Payable
                                                           ---------------------
                                                                0           0

                                                           ---------------------
Net Operating Income                                            0           0

Other Income

Insurance Commission

Operating Expenses

                                                           ---------------------
Profit/loss on ordinary activities before tax                   0           0

Taxation

                                                           ---------------------
Profit/loss on ordinary activities after tax                    0           0

Dividend                                                        0           0

Retained profit brought forward                                 0           0
                                                           ---------------------
Retained profit for the year                                    0           0
                                                           =====================

<PAGE>

                                       30

HOLMES FINANCING (NO. 6) PLC
BALANCE SHEET

PERIOD ENDED

                                                            (pound)      (pound)
                                                           ---------------------
FIXED ASSET INVESTMENTS

Inter Company Lending                                           0

CURRENT ASSETS

Interest Receivable                                                         0
Other debtors                                                               0
Cash at Bank                                                                0
                                                                        --------
                                                                            0
                                                                        --------

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals                                                                    0
Interest Payable Accrual                                                    0
Taxation                                                                    0
                                                                        --------
                                                                            0
                                                                        --------

Net current assets                                              0

CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

Amount due to Noteholders                                       0
                                                           --------
Total Assets less current liabilities                           0
                                                           ========

Share Capital                                                   0
Reserves                                                        0
                                                           --------
                                                                0
                                                           ========

                                              Diff              0

<PAGE>

                                       31

<TABLE>

HOLMES FINANCING (NO. 6) PLC
HOLMES FINANCING (NO. 3) PLC
NOTES OUTSTANDING

PERIOD ENDED

<CAPTION>

                          SERIES 1 CLASS A  SERIES 2 CLASS A  SERIES 3 CLASS A  SERIES 4 CLASS A1 SERIES 4 CLASS A2
<S>                              <C>               <C>               <C>               <C>               <C>
Moody's Current Rating           P-1               Aaa               Aaa               Aaa               Aaa
Fitch Current Rating              F1+              AAA               AAA               AAA               AAA
S&P Current Rating               A-1+              AAA               AAA               AAA               AAA

<CAPTION>

                          SERIES 5 CLASS A  SERIES 1 CLASS B  SERIES 2 CLASS B  SERIES 3 CLASS B  SERIES 4 CLASS B
<S>                              <C>               <C>               <C>               <C>               <C>
Moody's Current Rating           Aaa               Aa3               Aa3               Aa3               Aa3
Fitch Current Rating             AAA               AA                AA                AA                AA
S&P Current Rating               AAA               AA                AA                AA                AA

<CAPTION>

                          SERIES 5 CLASS B  SERIES 1 CLASS C  SERIES 2 CLASS C  SERIES 3 CLASS C  SERIES 4 CLASS C  SERIES 5 CLASS C
<S>                              <C>               <C>               <C>               <C>               <C>               <C>
Moody's Current Rating           Aa3               Baa2              Baa2              Baa2              Baa2              Baa2
Fitch Current Rating             AA                BBB               BBB               BBB               BBB               BBB
S&P Current Rating               AA                BBB               BBB               BBB               BBB               BBB

<CAPTION>

                          SERIES 1 CLASS A   SERIES 2 CLASS A  SERIES 3 CLASS A  SERIES 4 CLASS A1 SERIES 4 CLASS A2
<S>                              <C>               <C>               <C>               <C>               <C>
Initial Note Balance
Previous Quarters Note
Principal
Note Redemptions
Outstanding Note Principal

<CAPTION>

                          SERIES 5 CLASS A  SERIES 1 CLASS B  SERIES 2 CLASS B  SERIES 3 CLASS B  SERIES 4 CLASS B
<S>                              <C>               <C>               <C>               <C>               <C>
Initial Note Balance
Previous Quarters Note
Principal
Note Redemptions
Outstanding Note Principal

<CAPTION>

                          SERIES 5 CLASS B  SERIES 1 CLASS C  SERIES 2 CLASS C  SERIES 3 CLASS C  SERIES 4 CLASS C  SERIES 5 CLASS C
                                                    A
<S>                              <C>               <C>               <C>               <C>               <C>               <C>
Initial Note Balance
Previous Quarters Note
Principal
Note Redemptions
Outstanding Note Principal

<CAPTION>

                          SERIES 1 CLASS A  SERIES 2 CLASS A  SERIES 3 CLASS A  SERIES 4 CLASS A1 SERIES 4 CLASS A2
<S>                              <C>               <C>               <C>               <C>               <C>
Note Interest Margins
Step Up Dates
Step Up Margins

<CAPTION>

                          SERIES 5 CLASS A  SERIES 1 CLASS B  SERIES 2 CLASS B  SERIES 3 CLASS B  SERIES 4 CLASS B
                                                                     A
<S>                              <C>               <C>               <C>               <C>               <C>
Note Interest Margins
Step Up Dates
Step Up Margins

<CAPTION>

                          SERIES 5 CLASS B  SERIES 1 CLASS C  SERIES 2 CLASS C  SERIES 3 CLASS C  SERIES 4 CLASS C  SERIES 5 CLASS C
<S>                              <C>               <C>               <C>               <C>               <C>               <C>
Note Interest Margins
Step Up Dates
Step Up Margins

<CAPTION>

                          SERIES 1 CLASS A  SERIES 2 CLASS A  SERIES 3 CLASS A  SERIES 4 CLASS A1 SERIES 4 CLASS A2
<S>                              <C>               <C>               <C>               <C>               <C>
Interest Payment Cycle
Interest Payment Date
Next Interest Payment Data

<CAPTION>

                          SERIES 5 CLASS A  SERIES 1 CLASS B  SERIES 2 CLASS B  SERIES 3 CLASS B  SERIES 4 CLASS B
<S>                              <C>               <C>               <C>               <C>               <C>
Interest Payment Cycle
Interest Payment Date
Next Interest Payment Data
</TABLE>

<PAGE>

                                       32

<TABLE>
<CAPTION>

                          SERIES 5 CLASS B  SERIES 1 CLASS C  SERIES 2 CLASS C  SERIES 3 CLASS C  SERIES 4 CLASS C  SERIES 5 CLASS C
<S>                              <C>               <C>               <C>               <C>               <C>               <C>
Interest Payment Cycle
Interest Payment Date
Next Interest Payment Data

<CAPTION>

                          SERIES 1 CLASS A  SERIES 2 CLASS A  SERIES 3 CLASS A  SERIES 4 CLASS A1 SERIES 4 CLASS A2
<S>                              <C>               <C>               <C>               <C>               <C>
Liquidity Facility Limit
Liquidity Facility Drawn
Liquidity Facility Available
</TABLE>

<PAGE>

                                       33

                                   SIGNATORIES

SIGNED for and on behalf of          )
ABBEY NATIONAL PLC                   )

SIGNED for and on behalf of          )
HOLMES FINANCING (NO. 6) PLC         )

SIGNED for and on behalf of          )
THE BANK OF NEW YORK                 )
___                                  )
                                     )EXHIBIT 4.10

                                 DATED [___], 2002

                               ABBEY NATIONAL PLC
                                   as Servicer

                                       and

                             HOLMES TRUSTEES LIMITED
                              as Mortgages Trustee

                                       and

                               ABBEY NATIONAL PLC
                                    as Seller

                                       and

                             HOLMES FUNDING LIMITED
                                   as Funding

                                       and

                       JPMORGAN CHASE BANK, LONDON BRANCH
                               as Security Trustee

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

                          FURTHER AMENDED AND RESTATED
                               SERVICING AGREEMENT

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

                                SLAUGHTER AND MAY
                                  1 BUNHILL ROW
                                 LONDON EC1Y 8YY
                                   (MSXH/AGL)
                                   CB022900147

<PAGE>

                                    CONTENTS

CLAUSE                                                                      PAGE

1.       DEFINITIONS, INTERPRETATION AND AMENDMENT AND RESTATEMENT .........  2

2.       APPOINTMENT OF SERVICER ...........................................  2

3.       THE ADMINISTRATION SERVICES .......................................  3

4.       MORTGAGES TRUSTEE SVR AND TRACKER LOANS ...........................  5

5.       ADMINISTRATION OF MORTGAGES .......................................  8

6.       NO LIABILITY ...................................................... 11

7.       NEW LOANS ......................................................... 11

8.       PRODUCT SWITCHING AND FURTHER ADVANCES ............................ 11

9.       REDEMPTION OF MORTGAGES ........................................... 11

10.      POWERS OF ATTORNEY ................................................ 12

11.      COSTS AND EXPENSES ................................................ 12

12.      INFORMATION ....................................................... 13

13.      REMUNERATION ...................................................... 15

14.      INSURANCES ........................................................ 15

15.      ABBEY INSURANCE POLICIES .......................................... 16

16.      BUILDINGS POLICIES ................................................ 16

17.      TITLE DEEDS ....................................................... 17

18.      DATA PROTECTION ................................................... 18

19.      COVENANTS OF SERVICER ............................................. 18

20.      SERVICES NON-EXCLUSIVE ............................................ 19

21.      TERMINATION ....................................................... 19

22.      FURTHER ASSURANCE ................................................. 22

<PAGE>

23.      MISCELLANEOUS ..................................................... 23

24.      CONFIDENTIALITY ................................................... 24

25.      NOTICES ........................................................... 25

26.      VARIATION AND WAIVER .............................................. 26

27.      NO PARTNERSHIP .................................................... 26

28.      ASSIGNMENT ........................................................ 26

29.      CHANGE OF SECURITY TRUSTEE ........................................ 26

30.      NEW INTERCOMPANY LOAN AGREEMENTS .................................. 27

31.      EXCLUSION OF THIRD PARTY RIGHTS ................................... 27

32.      COUNTERPARTS ...................................................... 27

33.      GOVERNING LAW ..................................................... 27

SCHEDULE 1 ................................................................. 28

SCHEDULE 2 ................................................................. 29

SCHEDULE 3 ................................................................. 31

SCHEDULE 4 ................................................................. 35

<PAGE>

THIS FURTHER AMENDED AND RESTATED SERVICING AGREEMENT is made as a deed on ___,
2002

BETWEEN:

(1)   ABBEY NATIONAL PLC (registered number 2294747), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Abbey National House, 2 Triton Square, Regents Place, London NW1 3AN
      in its capacity as servicer of the Loans and the Related Security (the
      "SERVICER", which expression shall include such other person as may from
      time to time be appointed as servicer of the Portfolio pursuant to this
      Agreement);

(2)   HOLMES TRUSTEES LIMITED (registered number 3982431), a private limited
      company incorporated under the laws of England and Wales whose registered
      office is at Abbey National House, 2 Triton Square, Regents Place, London
      NW1 3AN (the "MORTGAGES TRUSTEE");

(3)   ABBEY NATIONAL PLC (registered number 2294747), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Abbey National House, 2 Triton Square, Regents Place, London NW1 3AN
      in its capacity as seller of the Loans (the "SELLER");

(4)   HOLMES FUNDING LIMITED (registered number 3982428), a private limited
      company incorporated under the laws of England and Wales whose registered
      office is at Abbey National House, 2 Triton Square, Regents Place, London
      NW1 3AN ("FUNDING" and together with the Seller, the "BENEFICIARIES"); and

(5)   JPMORGAN CHASE BANK, LONDON BRANCH (formerly known as The Chase Manhattan
      Bank, London Branch) whose principal office is at Trinity Tower, 9 Thomas
      More Street, London E1W 1YT 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)   The Servicer carries on the business of, inter alia, administering
      mortgage loans secured on residential properties within the United
      Kingdom.

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

(C)   The Servicer is willing to provide administration and management services
      to the Mortgages Trustee, the Seller, Funding and the Security Trustee on
      the terms and subject to the conditions contained in this Agreement in
      relation to, inter alia, the Loans and Related Security assigned to the
      Mortgages Trustee by the Seller.

<PAGE>
                                       2

(D)   Further to requests from Investors, the Servicer has agreed with the
      parties hereto to make available to Investors the Monthly Reports (as
      defined below) in an electronic format.

IT IS HEREBY AGREED as follows:

1.    DEFINITIONS, INTERPRETATION AND AMENDMENT AND RESTATEMENT

1.1   The Amended and Restated Master Definitions and Construction Schedule
      signed for the purposes of identification by Allen & Overy and Slaughter
      and May on ___, 2002 (as the same may be amended, varied or supplemented
      from time to time with the consent of the parties hereto) is expressly and
      specifically incorporated into this Agreement and, accordingly, the
      expressions defined in the Amended and Restated Master Definitions and
      Construction Schedule (as so amended, varied or supplemented) shall,
      except where the context otherwise requires and save where otherwise
      defined herein, have the same meanings in this Agreement, including the
      Recitals hereto and this Agreement shall be construed in accordance with
      the interpretation provisions set out in Clause 2 of that Amended and
      Restated Master Definitions and Construction Schedule.

1.2   Any reference in this Agreement to any discretion, power or right on the
      part of the Mortgages Trustee shall be as exercised by the Mortgages
      Trustee only as directed by the Beneficiaries but subject in each case to
      the provisions of [Clause 13.2 ]of the Mortgages Trust Deed.

1.3   This Agreement further amends and restates the servicing agreement made on
      26th July, 2000 (which was previously amended and restated on 29th
      November, 2000 and 23rd May, 2001) between the parties hereto (the
      "Principal Agreement"). As of the date of execution of this Agreement, any
      future right or obligation (excluding such rights or obligations accrued
      at such date) of a party under the Principal Agreement shall be
      extinguished and shall instead be governed by this Agreement.

2.    APPOINTMENT OF SERVICER

2.1   Subject to Clause 4.3(D), and until termination pursuant to Clause 21, the
      Mortgages Trustee, the Seller and Funding (according to their respective
      estates and interests) each hereby appoints the Servicer as its lawful
      agent on their respective behalves to exercise their respective rights,
      powers and discretions, and to perform their respective duties, under and
      in relation to the Loans and their Related Security. The Servicer in each
      case hereby accepts such appointment on the terms and subject to the
      conditions of this Agreement. The Security Trustee consents to the
      appointment of the Servicer on the terms of and subject to the conditions
      of this Agreement.

2.2   For the avoidance of doubt and in connection with the rights, powers and
      discretions conferred under Clause 2.1, during the continuance of its
      appointment hereunder, the Servicer shall, subject to the terms and
      conditions of this Agreement, the Mortgage Conditions, the Mortgage Sale
      Agreement and the Mortgages Trust Deed, have the full power, authority and
      right to do or cause to be done any and all things which it reasonably
      considers necessary, convenient or incidental to the administration of the
      Loans and their Related Security or the exercise of such rights, powers
      and discretions, provided however that neither the Mortgages Trustee nor

<PAGE>
                                       3

      Funding nor their respective directors shall be required or obliged at any
      time to enter into any transaction or to comply with any directions which
      the Servicer may give with respect to the operating and financial policies
      of the Mortgages Trustee or Funding and the Servicer hereby acknowledges
      that all powers to determine such policies (including the determination of
      whether or not any particular policy is for the benefit of the Mortgages
      Trustee or Funding) are, and shall at all times remain, vested, as the
      case may be, in the Mortgages Trustee and/or Funding (and their respective
      directors) and none of the provisions of this Agreement shall be construed
      in a manner inconsistent with this proviso.

3.    THE ADMINISTRATION SERVICES

3.1   GENERAL

      (A)   The duty of the Servicer shall be to provide the services set out in
            this Agreement including Schedule 1 (the "SERVICES").

      (B)   If and when the Servicer is requested to confirm or state the
            capacity in which it is administering and servicing the Loans, their
            Related Security and related matters pursuant to this Agreement by
            any Borrower or any third party not being a party to this Agreement
            and to whom the Servicer is obliged by law to disclose such
            information, the Servicer shall confirm or state that it is acting
            in its capacity as servicer of the Loans, their Related Security and
            related matters as agent for and on behalf of the Mortgages Trustee
            and the Beneficiaries and not on its own behalf.

3.2   SUB-CONTRACTS

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

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

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

            (iii) where the arrangements involve or may involve the receipt by
                  the sub-contractor or delegate of monies belonging to the
                  Beneficiaries which, in accordance with this Agreement, are to
                  be paid into the Mortgages Trustee GIC Account, the
                  Alternative Accounts and/or the Funding GIC Account, the

<PAGE>
                                       4

                  sub-contractor or delegate has executed a declaration in form
                  and substance acceptable to the Beneficiaries that any such
                  monies held by it or to its order are held on trust for the
                  Beneficiaries and will be paid forthwith into, as applicable,
                  the Mortgages Trustee GIC Account, the Alternative Accounts
                  and/or the Funding GIC Account in accordance with the terms of
                  the Mortgages Trust Deed;

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

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

      (B)   The provisos to Clause 3.2(A)(i), (ii) and (iii) shall not apply:

            (i)   to the engagement by the Servicer of:

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

                  (b)   any locksmith, builder or other contractor acting as
                        such in relation to a Property,

                  in any such case being a person or persons whom the Servicer
                  would be willing to appoint in respect of its own mortgages in
                  connection with the performance by the Servicer of any of its
                  obligations or functions or in connection with the exercise of
                  its powers under this Agreement; or

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

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

      (D)   Notwithstanding any sub-contracting or delegation of the performance
            of its obligations under this Agreement, the Servicer shall not
            thereby be released or

<PAGE>
                                       5

            discharged from any liability hereunder and shall remain responsible
            for the performance of the obligations of the Servicer under this
            Agreement, and the performance or non-performance or the manner of
            performance of any sub-contractor or delegate of any of the Services
            shall not affect the Servicer's obligations under this Agreement and
            any breach in the performance of the Services by such sub-contractor
            or delegate shall, subject to the Servicer being entitled for a
            period of twenty London Business Days from receipt of notice of the
            breach to remedy such breach by any sub-contractor or delegate, be
            treated as a breach of this Agreement by the Servicer.

3.3   NOTICES ETC.

      Promptly upon request by Funding and the Security Trustee, the Servicer
      shall procure that any notices permitted to be given by the Mortgages
      Trustee under [Clause 6.4] of the Mortgage Sale Agreement are so given by
      the Servicer on the Mortgages Trustee's behalf.

3.4   LIABILITY OF SERVICER

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

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

      (C)   Any indemnification under this Clause 3.4 in respect of loss
            suffered by the Beneficiaries shall be paid for by reducing the
            Seller Share of the Trust Property by an amount equal to the
            relevant loss incurred by the Beneficiaries in accordance with
            [Clause 6.4] of the Mortgages Trust Deed and Schedule 2 to the Cash
            Management Agreement.

4.    MORTGAGES TRUSTEE SVR AND TRACKER LOANS

4.1   The Mortgages Trustee and each of the Beneficiaries each hereby grants the
      Servicer full right, liberty and authority from time to time, in
      accordance with the relevant Mortgage Terms, to determine and set:

      (A)   the Mortgages Trustee SVR chargeable to Borrowers from time to time.
            In exercising such right, liberty and authority the Servicer
            undertakes to each of the other parties to

<PAGE>
                                       6

            this Agreement that it shall not at any time set or maintain the
            Mortgages Trustee SVR at a rate which is higher than the then
            prevailing Abbey SVR, unless the Servicer is required to do so
            pursuant to Clause 4.3, and, subject to that requirement, that it
            shall not change the Mortgages Trustee SVR save for the same reasons
            as the Seller was entitled, under the Mortgage Conditions, to change
            the Abbey SVR prior to the assignment to the Mortgages Trustee of
            the Loans comprised in the Portfolio and their Related Security.
            Each of the Mortgages Trustee and the Beneficiaries shall be bound
            by the Mortgages Trustee SVR set in accordance with this Agreement;
            and

      (B)   any variable margin in respect of Tracker Loans. In exercising such
            right, liberty and authority the Servicer undertakes to each of the
            other parties to this Agreement that:

            (i)   where the Offer Conditions relating to any Tracker Loan
                  provide that the margin shall be the same as the margin
                  applicable to all other Loans having the same Offer Conditions
                  in relation to the setting of the interest rate, the Servicer
                  shall not at any time set or maintain a margin which is higher
                  than the margin which is then being set by the Seller in
                  relation to any loans carrying the same Offer Conditions
                  relating to interest rate setting which are beneficially owned
                  by the Seller; and

            (ii)  in relation to any other Tracker Loan with a variable margin,
                  the Servicer shall not at any time set or maintain a margin
                  which is higher than the margin which would then be set in
                  accordance with the Seller's Policy (or, if the Seller's
                  Policy is no longer dealing with the setting of such margins,
                  in accordance with the standards of a reasonable, prudent
                  mortgage lender) in relation to that Loan,

                  unless the Servicer is required to do so pursuant to Clause
                  4.3, and, subject to that requirement, that it shall not
                  change any variable margin applicable to any Tracker Loan save
                  for the same reasons as the Seller was entitled, under the
                  Offer Conditions, to change such margin prior to the
                  assignment to the Mortgages Trustee of the Loans comprised in
                  the Portfolio and their Related Security. Each of the
                  Mortgages Trustee and the Beneficiaries shall be bound by any
                  margin set in accordance with this Agreement.

4.2   The Servicer shall take the steps rendered necessary by the relevant
      Mortgage Terms and applicable law (including, without limitation, the
      Guidance Note on Interest Variation Terms issued by the Office of Fair
      Trading in February 2000 and any successor guideline or applicable
      additional guidelines) to bring each change in such rate or rates of
      interest to the attention of the relevant Borrowers, whether due to a
      change in the Mortgages Trustee SVR or as a consequence of any provisions
      of the Mortgage Terms. Any change in the Mortgages Trustee SVR shall be
      notified to each of the Mortgages Trustee, the Security Trustee and the
      Beneficiaries as soon as reasonably practicable. All costs arising in
      relation to such a notification of a change in such rate or rates of
      interest shall be borne by the Servicer.

4.3   (A)   On each Interest Payment Date the Servicer shall determine, having
            regard to:

<PAGE>
                                       7

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

            (ii)  the Mortgages Trustee SVR in respect of the Loans which the
                  Servicer proposes to set under this Clause 4;

            (iii) the variable margins in respect of Tracker Loans which the
                  Servicer proposes to set under this Clause 4; and

            (iv)  the other resources available to Funding including the Funding
                  Swap Agreements, the First Reserve Fund and the Second Reserve
                  Fund,

            whether Funding would receive an amount of income during that
            Interest Period which when aggregated with the funds otherwise
            available to it is less than the amount which is the aggregate of
            (1) the amount of interest which will be payable in respect of the
            Term AAA Advances on the Distribution Date falling at the end of
            such Interest Period and (2) the other senior expenses of Funding
            which rank in priority thereto or pari passu therewith under the
            Funding Pre-Enforcement Revenue Priority of Payments or, as
            applicable, the Funding Post-Enforcement Priority of Payments (the
            amount (if any) by which it is less being the "INTEREST RATE
            SHORTFALL").

      (B)   If the Servicer determines that there will be an Interest Rate
            Shortfall, it will within one London Business Day give written
            notice thereof to the Mortgages Trustee, Funding and the Security
            Trustee of such Interest Rate Shortfall and of the Mortgages Trustee
            SVR and any variable margins in relation to Tracker Loans which
            would, in the Servicer's opinion, need to be set in order for no
            Interest Rate Shortfall to arise, having regard to the date(s)
            (which shall be specified in the notice) on which such changes to
            the Mortgages Trustee SVR and any variable margins in relation to
            Tracker Loans would take effect and at all times acting in
            accordance with the standards of a reasonable, prudent mortgage
            lender as regards the competing interests of those Borrowers with
            Loans in respect of which the rate of interest is determined by
            reference to an SVR and those Borrowers with Tracker Loans.

      (C)   If the Mortgages Trustee, Funding and the Security Trustee notify
            the Servicer that, having regard to the obligations of Funding, the
            Mortgages Trustee SVR and any variable margins in relation to
            Tracker Loans should be increased, the Servicer, as agent for and on
            behalf of, inter alia, the Mortgages Trustee and the Beneficiaries,
            shall take all steps which are necessary, including publishing any
            notice which is required in accordance with the Mortgage Terms, to
            effect such change in the Mortgages Trustee SVR and any variable
            margins in relation to Tracker Loans on the date(s) specified in the
            notice referred to in Clause 4.3(B).

      (D)   The Mortgages Trustee and/or Funding and the Security Trustee may
            terminate the authority of the Servicer under Clause 4.1 and Clause
            4.3 to determine the Mortgages Trustee SVR and any variable margins
            in relation to Tracker Loans on or after the occurrence of a
            Termination Event, in which case the Mortgages Trustee shall set the

<PAGE>
                                       8

            Mortgages Trustee SVR and any variable margins in relation to
            Tracker Loans in accordance with this Clause 4, save the Seller
            shall be entitled to make representations to the Mortgages Trustee
            with respect to any charges in any variable margins in relation
            to Tracker Loans.

5.    ADMINISTRATION OF MORTGAGES

5.1   DIRECT DEBITING SCHEME

      (A)   For the purposes of collecting amounts due from Borrowers under the
            Loans and the Related Security comprised in the Portfolio in
            accordance with this Agreement the Servicer will unless otherwise
            agreed with the Beneficiaries:

            (i)   act, or procure that another person approved by the
                  Beneficiaries (such approval not to be unreasonably withheld)
                  (the "THIRD PARTY COLLECTION AGENT") acts, as collection agent
                  for the Mortgages Trustee and the Beneficiaries under the
                  Direct Debiting Scheme and remains a member of the Direct
                  Debiting Scheme or any scheme which replaces the Direct
                  Debiting Scheme;

            (ii)  subject to Clause 5.3(B) and 5.3(C), deliver to the Bankers
                  Automated Clearing System ("BACS") or to each Account Bank (as
                  appropriate) such instructions as may be necessary from time
                  to time for the debit of the account of each Borrower in
                  respect of which there is a direct debit mandate (the date of
                  such delivery being the "D.D. DATE") with the Monthly Payment
                  due from such Borrower, and for the amount of such Monthly
                  Payment to be credited to the Mortgages Trustee GIC Account or
                  relevant Alternative Account, as the case may be, on the D.D.
                  Date or, if such is not a London Business Day, the following
                  London Business Day;

            (iii) subject to Clause 5.3(B) and 5.3(C), deliver to each Account
                  Bank or BACS (as appropriate) not later than ten London
                  Business Days before the next succeeding Monthly Payment Day
                  after the D.D. Date, instructions for the debit of the account
                  of each Borrower in respect of which there is a direct debit
                  mandate and the Monthly Payment due and owing from such
                  Borrower on the last D.D. Date remains outstanding to the
                  extent that, on the date of presentation of such instructions,
                  such Monthly Payment has not been received in full by the
                  Servicer on behalf of the Mortgages Trustee;

            (iv)  subject to Clause 5.3(B) and 5.3(C), deliver to each Account
                  Bank or BACS (as appropriate) such other instructions for the
                  debit of the account of each Borrower in respect of which
                  there is a direct debit mandate in accordance with the Direct
                  Debiting Scheme as may be appropriate for the recovery of sums
                  due by such Borrower;

            (v)   comply in all material respects with the requirements from
                  time to time of the Direct Debiting Scheme including "The
                  Originator's Guide and Rules to the Direct Debiting Scheme" as
                  amended from time to time; and

<PAGE>
                                       9

            (vi)  take all such other steps as are reasonably appropriate,
                  including in particular the preparation and administration of
                  appropriate computer tapes in connection with BACS, to ensure
                  that all monies received from Borrowers during banking hours
                  on any particular day are credited on that day to the
                  Mortgages Trustee GIC Account or relevant Alternative Account,
                  as the case may be.

      (B)   The Servicer may agree with a Borrower that the Direct Debiting
            Scheme shall not apply to Monthly Payments to be made by such
            Borrower, provided, subject to Clause 5.3(D), that (i) alternative
            payment arrangements are made which are intended to ensure timely
            payment of Monthly Payments due from the Borrower to the Mortgages
            Trustee on behalf of the Beneficiaries, and (ii) the change in
            arrangements was made at the instigation of the Borrower or by the
            Servicer in accordance with the procedures which would be adopted by
            a reasonable, prudent mortgage lender.

      (C)   The Servicer may, notwithstanding the proviso to Clause 5.3(B),
            agree such procedures for the payment by a Borrower of (i) overdue
            amounts and (ii) amounts payable on redemption of a Mortgage in
            whole or in part other than through the Direct Debiting Scheme as
            would be agreed by a reasonable, prudent mortgage lender.

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

      (E)   In the event that the BACS system ceases to operate for any reason
            the Servicer will use reasonable endeavours to make alternative
            arrangements for the use of the back up systems available to each
            Account Bank.

5.2   ADMINISTRATION AND ENFORCEMENT OF MORTGAGES

      (A)   The Mortgages Trustee and the Beneficiaries hereby direct the
            Servicer to administer the Loans comprised in the Portfolio and
            carry out its specific obligations under this Agreement in
            accordance with the Seller's Policy.

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

<PAGE>
                                       10

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

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

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

5.3   RECORDS

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

5.4   TRUST

      (A)   If the Servicer in carrying out its functions as Servicer under this
            Agreement receives (including in its capacity as agent for the
            Mortgages Trustee and the Beneficiaries) any money whatsoever
            arising from the Loans and their Related Security, which money
            belongs to the Mortgages Trustee (as trustee for the Beneficiaries)
            and is to be paid to the Mortgages Trustee GIC Account or one of the
            Alternative Accounts pursuant to this Agreement or any of the other
            Transaction Documents or otherwise, it will hold such monies on
            trust for the Mortgages Trustee and shall keep such money separate
            from all other monies held by the Servicer and shall, as soon as
            reasonably practicable and in any event within three London Business
            Days of receipt of the same, pay the monies into the Mortgages
            Trustee GIC Account or the relevant Alternative Account, as the case
            may be.

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

<PAGE>
                                       11

6.    NO LIABILITY

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

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

7.    NEW LOANS

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

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

8.    PRODUCT SWITCHING AND FURTHER ADVANCES

8.1   The Servicer shall not accept an application for a Further Advance or a
      Product Switch without first having received confirmation in writing from
      the Seller that the Seller would, if so offered by the Mortgages Trustee,
      purchase the relevant Loan and its Related Security from the Mortgages
      Trustee.

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

8.3   Notwithstanding Clause 8.2, subject to complying with the terms of Clause
      8.1, the Servicer may accept requests from Borrowers for Product Switches
      and Further Advances provided that the Servicer acts in accordance with
      its then procedure which would be acceptable to a reasonable, prudent
      mortgage lender.

9.    REDEMPTION OF MORTGAGES

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

<PAGE>
                                       12

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

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

10.   POWERS OF ATTORNEY

10.1  Each of the Mortgages Trustee and the Beneficiaries hereby appoints the
      Servicer as its attorney on its behalf, and in its own or the attorney's
      name, for the following purposes:

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

      (B)   executing all documents necessary for the purpose of releasing a
            Borrower in accordance with Clause 9;

      (C)   executing all documents and doing all such acts and things which in
            the reasonable opinion of the Servicer are necessary or desirable
            for the efficient provision of the Services hereunder, and

      (D)   exercising its rights, powers and discretion under the Mortgages
            including the right to fix the Mortgages Trustee SVR or any related
            rights,

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

10.2  The appointments contained in Clause 10.1 shall be irrevocable unless and
      until following a Termination Event the Mortgages Trustee and/or Funding
      and the Security Trustee serves notice pursuant to Clause 21 to terminate
      the Servicer's appointment under this Agreement upon which the
      appointments contained in Clause 10.1 shall be automatically revoked.

11.   COSTS AND EXPENSES

      The Mortgages Trustee (on behalf of the Beneficiaries) will on each
      Distribution Date reimburse, in accordance with [Clause 8.2] of the
      Mortgages Trust Deed, the Servicer for all out-of-pocket costs, expenses
      and charges (together with any amounts in respect of Irrecoverable Value
      Added Tax due thereon) properly incurred by the Servicer in the
      performance of the Services including any such costs, expenses or charges
      not reimbursed to

<PAGE>
                                       13

      the Servicer on any previous Distribution Date and the Servicer shall
      supply the Mortgages Trustee with an appropriate VAT invoice issued by the
      person making the supply.

12.   INFORMATION

12.1  MAINTENANCE OF RECORDS

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

      (B)   A duplicate of any computer records held by the Servicer which
            contains information relating to the Loans and the Related Security
            shall be lodged by the Servicer on a daily basis with Bletchley Data
            Centre, Buckingham House, Buckingham Road, Bletchley, Milton Keynes,
            MK3 5LD and/or (in accordance with operational requirements) with
            Hayes Information Management at 5 International Avenue, Heston,
            Middlesex, TW5 9NJ or at such other locations selected by the
            Servicer, such records to be held to the order of the Mortgages
            Trustee and to be replaced by a revised duplicate as and when the
            original records are revised. The Servicer shall keep the Mortgages
            Trustee informed of the location of the Customer Files and duplicate
            computer records.

12.2  USE OF I.T. SYSTEMS

      (A)   The Servicer represents and warrants that at the date hereof in
            respect of the software which is used by the Servicer in providing
            the Services, it shall for the duration of this Agreement:

            (i)   ensure that it has in place all necessary licences and/or
                  consents from the respective licensor or licensors (if any) of
                  such software; and

            (ii)  except in so far as it would breach any other of its legal
                  obligations, grant to any person to whom it may sub-contract
                  or delegate the performance of all or any of its powers and
                  obligations under this Agreement and/or to such person as the
                  Mortgages Trustee and the Beneficiaries elect as a substitute
                  servicer in accordance with the terms of this Agreement a
                  licence to use any proprietary software together with any
                  updates which may be made thereto from time to time.

      (B)   The Servicer shall use reasonable endeavours to maintain in working
            order the information technology systems used by the Servicer in
            providing the Services.

<PAGE>
                                       14

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

12.3  ACCESS TO BOOKS AND RECORDS

      Subject to all applicable laws, the Servicer shall permit the Mortgages
      Trustee and Funding (and their auditors) and the Security Trustee and any
      other person nominated by the Beneficiaries (to whom the Servicer has no
      reasonable objection) upon reasonable notice during normal office hours to
      have access, or procure that such person or persons are granted access, to
      all books of record and account (including, for the avoidance of doubt,
      the Title Deeds and Customer Files) relating to the administration of the
      Loans and the Related Security comprised in the Portfolio and related
      matters in accordance with this Agreement.

12.4  INFORMATION COVENANTS

      (A)   The Servicer shall provide the Mortgages Trustee, the Beneficiaries
            and the Rating Agencies (i) monthly with a report in, or
            substantially in, the form set out in Schedule 3 and (ii) quarterly
            with a report in, or substantially in, the form set out in Schedule
            2, and shall assist the Cash Manager in the production of quarterly
            reports substantially in the forms set out in Schedule 3 of the Cash
            Management Agreement.

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

      (C)   The Servicer shall, at the request of Funding and the Security
            Trustee (where the Servicer is the Seller) and at the request of the
            Beneficiaries (where the Servicer is no longer the Seller), furnish
            Funding, the Security Trustee and/or the Beneficiaries (as
            appropriate) and the Rating Agencies with such other information
            relating to the business and financial condition of the Servicer
            and/or any person to whom the Servicer has sub-contracted or
            delegated part of its obligations hereunder, as it may be reasonable
            for Funding, the Security Trustee and/or the Beneficiaries (as
            appropriate) to request in connection with the ratings of the First
            Issuer Notes, Second Issuer Notes, the Third Issuer Notes, the
            Fourth Issuer Notes, the Fifth Issuer Notes, the Sixth Issuer Notes
            and any New Notes and other matters contemplated by the Transaction,
            provided that Funding, the Security Trustee or the Beneficiaries (as

<PAGE>
                                       15

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

      (D)   Subject to any applicable law or contrary instruction from the
            Beneficiaries, the Servicer shall furnish to each beneficial owner
            of any Notes (an "Investor") monthly reports on the Portfolio in, or
            substantially in, the form of Schedule 3 (the "Monthly Reports").
            The Servicer, upon request by an Investor, shall also furnish
            previous Monthly Reports to such Investor.

      (E)   For the purposes of Clause 12.4(D), the Servicer is entitled to
            assume that any person who has delivered to the Servicer a
            certificate in the form of Schedule 4 is an Investor, and that any
            other person is not an Investor.

      (F)   Subject to any applicable law or contrary instruction from both
            (and, for the avoidance of doubt, not one only) of the Beneficiaries
            acting together, the Servicer will make reasonable efforts to make
            available to Investors Monthly Reports (including previous Monthly
            Reports) in an electronic format acceptable to the Security Trustee
            such as "Bloomberg".

13.   REMUNERATION

      The Mortgages Trustee (on behalf of the Beneficiaries) shall pay to the
      Servicer for its Services hereunder an administration fee (the
      "ADMINISTRATION FEE") (inclusive of Value Added Tax) which:

      (A)   shall be calculated in relation to each Distribution Period on the
            basis of the number of days elapsed and a 365 day year (or, in the
            case of a Distribution Period ending in a leap year, a 366 day year)
            at the rate of 0.12 per cent. per annum, inclusive of Value Added
            Tax, on the aggregate amount of the Funding Share of the Trust
            Property as at close of business on the preceding Interest Payment
            Date (or, as applicable, the Initial Closing Date); and

      (B)   shall be paid to the Servicer in arrear on each Distribution Payment
            Date in the manner contemplated by and in accordance with the
            provisions of [Clause 8.2] of the Mortgages Trust Deed.

14.   INSURANCES

      The Servicer will administer the arrangements for insurance to which the
      Mortgages Trustee is a party or in which either the Seller or the
      Mortgages Trustee (on behalf of the Beneficiaries) has an interest and
      which relate to the Loans and the Mortgages comprised in the Portfolio or
      the business of the Mortgages Trustee. In particular, but without
      limitation, the Servicer shall promptly notify the Mortgages Trustee and
      the Beneficiaries and the Trustee of the existence of any insurance
      policies to which the Seller is a party or in which it has an interest in
      addition

<PAGE>
                                       16

      to those specifically referred to in the definition of "Abbey Insurance
      Policies" in the Master Definitions Schedule.

15.   ABBEY INSURANCE POLICIES

15.1  The Servicer shall not knowingly take or omit to take any action which
      would:

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

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

      (C)   invalidate any Abbey Insurance Policy.

15.2  The Servicer shall prepare and submit any claim under the Abbey Insurance
      Policies in accordance with the requirements of the relevant Abbey
      Insurance Policy and otherwise with the usual procedures undertaken by a
      reasonable, prudent mortgage lender on behalf of the Mortgages Trustee and
      the Beneficiaries and shall comply with the other requirements of the
      insurer under the relevant Abbey Insurance Policy.

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

16.   BUILDINGS POLICIES

16.1  The Servicer shall not knowingly take any action or omit to take any
      action which would result in the avoidance or termination of any
      applicable Buildings Policy or would reduce the amount payable on any
      claim thereunder.

16.2  Upon receipt of notice that any Borrower whose Loan is secured by a
      mortgage of a leasehold Property has failed to make a payment when due of
      any sums due under the relevant lease in respect of the insurance of the
      property the Servicer may debit that Borrower's account with the relevant
      amount which shall then be paid to the landlord.

16.3  If the Servicer becomes aware that a Borrower has failed to pay premiums
      due under any Buildings Policy, the Servicer shall take such action as
      would a reasonable, prudent mortgage lender with a view to ensuring that
      the relevant Property continues to be insured in accordance with the
      applicable Mortgage Terms or the Alternative Insurance Recommendations.

<PAGE>
                                       17

17.   TITLE DEEDS

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

17.2  The Title Deeds relating to the Portfolio shall be kept in such manner so
      that a computer record is maintained of their location and they are
      identifiable and retrievable by reference to an account number and pool
      identifier and identifiable and distinguishable from the title deeds
      relating to other properties and mortgages in respect of which the
      Servicer is mortgagee or servicer. In the event of receipt by the Servicer
      of notice that the short-term, unsecured, unsubordinated and unguaranteed
      debt of the Servicer is rated less than A-1 by S&P and P-1 by Moody's and
      F-1 by Fitch, the Servicer shall use reasonable endeavours to ensure that
      the Title Deeds (and the Customer Files) are located separately from the
      title deeds and customer files of other properties and mortgages which do
      not form part of the Portfolio.

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

17.4  The Servicer shall, forthwith on the termination of the appointment of the
      Servicer pursuant to Clause 21, deliver the Title Deeds and Customer Files
      to or to the order of the Mortgages Trustee or to such person as the
      Mortgages Trustee elects as a substitute servicer in accordance with the
      terms of this Agreement upon written request by the Mortgages Trustee made
      at any time on or after notice of, or on or after, termination of the
      appointment of the Servicer pursuant to Clause 21.

17.5  The Servicer undertakes that it will use all reasonable efforts to obtain,
      as soon as practicable and, in any event, in the case of the Mortgages in
      the Initial Portfolio, on or prior to the Distribution Date falling in
      July, 2001, and in the case of Mortgages which relate to New Loans, on or
      prior to the first Distribution Date falling after the first anniversary
      of the date on which the New Loans are purchased from the Seller, details
      of the title numbers applicable to Properties comprising registered land
      or land which is the subject of an application for first registration. The
      Servicer shall include in the quarterly report to be delivered in relation
      to the Distribution Date falling in July, 2001 details of such title
      numbers relating to the Initial Portfolio as are then known to the
      Servicer at the time of such report together with such other information
      relating thereto as the Mortgages Trustee may reasonably request.

<PAGE>
                                       18

18.   DATA PROTECTION

      The Servicer represents that as at the date hereof the Servicer has and
      hereafter it will maintain on behalf of itself and on behalf of the
      Mortgages Trustee (as trustee for the Beneficiaries) all appropriate
      registrations, licences and authorities (if any) required under the Data
      Protection Act 1998 to enable each of them to perform their respective
      obligations under this Agreement.

19.   COVENANTS OF SERVICER

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

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

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

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

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

      (E)   save as otherwise agreed with the Mortgages Trustee and each of the
            Beneficiaries, provide free of charge to the Mortgages Trustee and
            the Beneficiaries, office space, facilities, equipment and staff
            sufficient to fulfil the obligations of the Mortgages Trustee and
            the Beneficiaries under this Agreement;

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

      (G)   ensure that at all times the Loans (including the Flexible Loans)
            comply with the terms of the Consumer Credit Act 1974 (to the extent
            that such Loans are regulated by that Act);

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

<PAGE>
                                       19

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

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

19.2  The covenants of the Servicer in Clause 19.1 shall remain in force until
      this Agreement is terminated but without prejudice to any right or remedy
      of the Mortgages Trustee and/or the Seller and/or Funding arising from
      breach of any such covenant prior to the date of termination of this
      Agreement.

20.   SERVICES NON-EXCLUSIVE

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

21.   TERMINATION

21.1  If any of the following events ("TERMINATION EVENTS") shall occur:

      (A)   default is made by the Servicer in the payment on the due date of
            any payment due and payable by it under this Agreement and such
            default continues unremedied for a period of three London Business
            Days after the earlier of the Servicer becoming aware of such
            default and receipt by the Servicer of written notice from Funding,
            the Security Trustee and the Mortgages Trustee requiring the same to
            be remedied;

      (B)   default is made by the Servicer in the performance or observance of
            any of its other covenants and obligations under this Agreement,
            which in the reasonable opinion of Funding and the Security Trustee
            is materially prejudicial to the interests of the Issuers under the
            Intercompany Loans and/or the interests of the holders of the First
            Issuer Notes, the Second Issuer Notes, the Third Issuer Notes, the
            Fourth Issuer Notes, the Fifth Issuer Notes, the Sixth Issuer Notes
            and any New Notes from time to time and such default continues
            unremedied for a period of twenty days after the earlier of the
            Servicer becoming aware of such default and receipt by the Servicer
            of written notice from Funding and the Security Trustee requiring
            the same to be remedied, provided however that where the relevant
            default occurs as a result of a default by any person to whom the
            Servicer has sub-contracted or delegated part of its obligations
            hereunder, such default shall not constitute a Termination Event if,
            within such period of ten London Business Days, the Servicer
            terminates the relevant sub-contracting or delegation arrangements
            and takes such steps as Funding and the Security Trustee may specify
            to remedy such default or to indemnify the Mortgages Trustee and the
            Beneficiaries against the consequences of such default;

<PAGE>
                                       20

      (C)   an order is made or an effective resolution passed for winding up
            the Servicer;

      (D)   the Servicer ceases or threatens to cease to carry on its business
            or a substantial part of its business or stops payment or threatens
            to stop payment of its debts or the Servicer is deemed unable to pay
            its debts within the meaning of section 123(1)(a), (b), (c) or (d)
            of the Insolvency Act 1986 (as that section may be amended) or
            becomes unable to pay its debts as they fall due or the value of its
            assets falls to less than the amount of its liabilities (taking into
            account for both these purposes its contingent and prospective
            liabilities) or otherwise becomes insolvent;

      (E)   proceedings are initiated against the Servicer under any applicable
            liquidation, administration, insolvency, composition, reorganisation
            (other than a reorganisation where the Servicer is solvent) or other
            similar laws, save where such proceedings are being contested in
            good faith by the Servicer, or an administrative or other receiver,
            administrator or other similar official is appointed in relation to
            the Servicer or in relation to the whole or any substantial part of
            the undertaking or assets of the Servicer or an encumbrancer takes
            possession of the whole or any substantial part of the undertaking
            or assets of the Servicer, or a distress, execution or diligence or
            other process is levied or enforced upon or sued out against the
            whole or any substantial part of the undertaking or assets of the
            Servicer and in any of the foregoing cases it is not discharged
            within fifteen London Business Days; or if the Servicer initiates or
            consents to judicial proceedings relating to itself under any
            applicable liquidation, administration, insolvency, composition,
            reorganisation or other similar laws or makes a conveyance or
            assignment for the benefit of its creditors generally;

      (F)   neither the Servicer nor a directly or indirectly wholly-owned
            subsidiary of the Servicer is servicing the Portfolio pursuant to
            this Agreement; or

      (G)   the Servicer has not terminated the sub-contracting and delegation
            within ten London Business Days if required by Clause 21.6,

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

21.2  The appointment of the Servicer under this Agreement may be terminated
      upon the expiry of not less than 12 months' notice of termination given by
      the Servicer to the Mortgages Trustee and the Beneficiaries provided that:

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

      (B)   a substitute servicer shall be appointed, such appointment to be
            effective not later than the date of such termination;

<PAGE>
                                       21

      (C)   such substitute servicer has experience of administering mortgages
            of residential property in the United Kingdom and is approved by the
            Mortgages Trustee and the Beneficiaries;

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

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

21.3  On and after termination of the appointment of the Servicer under this
      Agreement pursuant to this Clause 21, all authority and power of the
      Servicer under this Agreement shall be terminated and be of no further
      effect and the Servicer shall not thereafter hold itself out in any way as
      the agent of the Mortgages Trustee and/or the Beneficiaries pursuant to
      this Agreement.

21.4  Upon termination of the appointment of the Servicer under this Agreement
      pursuant to this Clause 21, the Servicer shall:-

      (A)   forthwith deliver (and in the meantime hold on trust for, and to the
            order of, the Mortgages Trustee) to the Mortgages Trustee or as it
            shall direct the Customer Files, the Title Deeds, all books of
            account, papers, records, registers, correspondence and documents in
            its possession or under its control relating to the affairs of or
            belonging to the Mortgages Trustee (as trustee for the
            Beneficiaries) and the Mortgages in the Portfolio and any other
            Related Security, (if practicable, on the date of receipt) any
            monies then held by the Servicer on behalf of the Mortgages Trustee
            and any other assets of the Mortgages Trustee and the Beneficiaries;

      (B)   take such further action as the Mortgages Trustee, Funding and the
            Security Trustee may reasonably direct at the expense of the
            Beneficiaries (including in relation to the appointment of a
            substitute servicer) provided that the Mortgages Trustee shall not
            be required to take or direct to be taken such further action unless
            it has been indemnified to its satisfaction;

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

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

<PAGE>
                                       22

      (E)   permit the Mortgages Trustee, Funding and the Security Trustee to
            have access at reasonable times to the Abbey Insurance Policies.

21.5  The Servicer shall deliver to the Mortgages Trustee and the Beneficiaries
      as soon as reasonably practicable but in any event within five days of
      becoming aware thereof a notice of any Termination Event or any event
      which with the giving of notice or lapse of time or certification would
      constitute the same.

21.6  If any of the events set out in Clauses 21.1(C), (D) and (E) occur in
      relation to any person to whom the Servicer has sub-contracted or
      delegated part of its obligations hereunder, the Servicer shall notify the
      Security Trustee and the Servicer shall within ten London Business Days of
      such an event occurring, terminate the relevant sub-contracting or
      delegation arrangements.

21.7  Termination of this Agreement or the appointment of the Servicer under
      this Agreement shall be without prejudice to the liabilities of the
      Mortgages Trustee and the Beneficiaries to the Servicer or vice versa
      incurred before the date of such termination. The Servicer shall have no
      right of set-off or any lien in respect of such amounts against amounts
      held by it on behalf of the Mortgages Trustee.

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

21.9  On termination of the appointment of the Servicer under the provisions of
      this Clause 21, the Servicer shall be entitled to receive all fees and
      other monies accrued up to the date of termination but shall not be
      entitled to any other or further compensation. Such monies so receivable
      by the Servicer shall be paid by the Mortgages Trustee on the dates on
      which they would otherwise have fallen due hereunder. For the avoidance of
      doubt, such termination shall not affect the Servicer's rights to receive
      payment of all amounts (if any) due to it from the Mortgages Trustee other
      than under this Agreement.

21.10 Prior to termination of this Agreement, the Servicer, the Seller, the
      Security Trustee, the Mortgages Trustee and Funding shall co-operate to
      obtain the agreement of the Borrowers to a new bank mandate permitting the
      Mortgages Trustee to operate the Direct Debiting Scheme.

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

22.   FURTHER ASSURANCE

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

22.2  Without prejudice to the generality of Clause 22.1, the Mortgages Trustee
      and the Beneficiaries shall upon request by the Servicer forthwith give to
      the Servicer such further

<PAGE>
                                       23

      powers of attorney or other written authorisations, mandates or
      instruments as are necessary to enable the Servicer to perform the
      Services.

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

22.4  Nothing herein contained shall impose any obligation or liability on the
      Mortgages Trustee to assume or perform any of the obligations of the
      Servicer hereunder or render it liable for any breach thereof.

23.   MISCELLANEOUS

23.1  Subject to Clause 23.2, in the event that the funds available to the
      Mortgages Trustee on any Interest Payment Date are not sufficient to
      satisfy in full the aggregate amount payable to the Servicer by the
      Mortgages Trustee on such Interest Payment Date then the amount payable to
      the Servicer on such Interest Payment Date shall be reduced by the amount
      of the shortfall and such shortfall shall (subject always to the
      provisions of this Clause 23) be payable on the immediately succeeding
      Interest Payment Date.

23.2  In the event that:

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

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

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

23.3  Each of the Seller and the Servicer agrees that it will not:

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

<PAGE>
                                       24

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

23.4  The Servicer agrees that for so long as any First Issuer Notes, the Second
      Issuer Notes, the Third Issuer Notes and New Notes are outstanding it will
      not petition nor commence proceedings for the administration or winding up
      of the Mortgages Trustee or Funding or any Issuer nor participate in any
      ex parte proceedings with regard thereto.

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

23.6  For the avoidance of doubt, neither Beneficiary shall be liable to pay any
      amounts due under Clauses 11 and 13 without prejudice to the obligations
      of the Mortgages Trustee in respect of such amounts.

23.7  Notwithstanding any other provisions of this Agreement, all obligations
      to, and rights of, Funding under or in connection with this Agreement
      (other than its obligations under Clause 24) shall automatically terminate
      upon the discharge in full of all amounts owing by it under any
      Intercompany Loan Agreement, provided that this shall be without prejudice
      to any claims in respect of such obligations and rights arising on or
      prior to such date.

24.   CONFIDENTIALITY

      During the continuance of this Agreement or after its termination, each of
      the Mortgages Trustee and the Beneficiaries shall use its best endeavours
      not to disclose to any person, firm or company whatsoever any information
      relating to the business, finances or other matters of a confidential
      nature of any other party hereto of which it may exclusively by virtue of
      being party to the Transaction Documents have become possessed and shall
      use all reasonable endeavours to prevent any such disclosure as aforesaid,
      provided however that the provisions of this Clause 24 shall not apply:

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

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

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

      (D)   to any extent that the Mortgages Trustee or the Beneficiaries is
            required to disclose the same pursuant to any law or order of any
            court or pursuant to any direction,

<PAGE>
                                       25

            request or requirement (whether or not having the force of law) of
            any central bank or any governmental or other authority (including,
            without limitation, any official bank examiners or regulators);

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

      (F)   in relation to any information disclosed to the professional
            advisers of the Mortgages Trustee or the Beneficiaries or (in
            connection with the review of current ratings of the First Issuer
            Notes, the Second Issuer Notes, the Third Issuer Notes, the Fourth
            Issuer Notes, the Fifth Issuer Notes, the Sixth Issuer Notes or any
            New Notes or with a prospective rating of any debt to be issued by
            an Issuer) to any credit rating agency or any prospective new
            Servicer or Mortgages Trustee.

25.   NOTICES

      Any notices to be given pursuant to this Agreement to any of the parties
      hereto shall be sufficiently served if sent by prepaid first class post,
      by hand or facsimile transmission and shall be deemed to be given (in the
      case of facsimile transmission) when despatched, (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 Servicer, to Abbey National plc, Abbey National
            House, 2 Triton Square, Regents Place, London NW1 3AN (facsimile
            number +44 20 7612 4319) for the attention of the Company Secretary
            with a copy to Abbey National plc, c/o Abbey House (AAM 126), 201
            Grafton Gate East, Milton Keynes MK9 1AN (facsimile number +44 1908
            343 019) for the attention of Securitisation Team, Business
            Relationship Management;

      (B)   in the case of the Mortgages Trustee, to Holmes Trustees Limited c/o
            Abbey House (AAM 126), 201 Grafton Gate East, Milton Keynes MK9 1AN
            (facsimile number +44 1908 343 019) for the attention of
            Securitisation Team, Business Relationship Management;

      (C)   in the case of the Seller, to Abbey National plc, Abbey National
            House, 2 Triton Square, Regents Place, London NW1 3AN (facsimile
            number +44 20 7612 4319) for the attention of the Company Secretary
            with a copy to Abbey National plc, c/o Abbey House (AAM 126), 201
            Grafton Gate East, Milton Keynes MK9 1AN (facsimile number +44 1908
            343 019) for the attention of Securitisation Team, Business
            Relationship Management;

<PAGE>
                                       26

      (D)   in the case of Funding, to Holmes Funding Limited c/o Abbey House
            (AAM 126), 201 Grafton Gate East, Milton Keynes MK9 1AN (facsimile
            number +44 1908 343 019) for the attention of Securitisation Team,
            Business Relationship Management;

      (E)   in the case of the Security Trustee, to JPMorgan Chase Bank, London
            Branch at Trinity Tower, 9 Thomas More Street, London E1W 1YT
            (facsimile number +44 20 7777 5410) for the attention of the
            Manager, Trust Administration,

      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 written notice in accordance with the provisions of this
      Clause 25. All notices served under this Agreement shall be simultaneously
      copied to the Security Trustee by the person serving the same.

26.   VARIATION AND WAIVER

      No variation or waiver of this Agreement shall be effective unless it is
      in writing and signed by (or by some person duly authorised by) each of
      the parties. No single or partial exercise of, or failure or delay in
      exercising, any right under this Agreement shall constitute a waiver or
      preclude any other or further exercise of that or any other right.

27.   NO PARTNERSHIP

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

28.   ASSIGNMENT

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

28.2  The Servicer may not assign or transfer any of its rights and obligations
      under this Agreement without the prior written consent of the Mortgages
      Trustee (as trustee for the Beneficiaries) and each of the Beneficiaries.

28.3  The Servicer acknowledges that Funding has assigned its rights under this
      Agreement to the Security Trustee pursuant to the Funding Deed of Charge
      and acknowledges that pursuant to the terms of the Funding Deed of Charge,
      Funding has, inter alios, authorised the Security Trustee, prior to the
      Funding Security becoming enforceable, to exercise, or refrain from
      exercising, all rights, powers, authorities, discretions and remedies
      under or in respect of the Transaction Documents, including this
      Agreement, in such manner as in its absolute discretion it shall think
      fit.

29.   CHANGE OF SECURITY TRUSTEE

29.1  If there is any change in the identity of the Security Trustee in
      accordance with the Funding Deed of Charge, the Servicer, the Seller,
      Funding and the Mortgages Trustee shall execute such documents and take
      such action as the successor Security Trustee and the outgoing

<PAGE>
                                       27

      Security Trustee may reasonably require for the purpose of vesting in the
      successor Security Trustee the rights and obligations of the outgoing
      Security Trustee under this Agreement and releasing the outgoing Security
      Trustee from its future obligations under this Agreement.

29.2  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 Servicer, the Seller, Funding or the
      Mortgages Trustee under this Agreement.

30.   NEW INTERCOMPANY LOAN AGREEMENTS

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

31.   EXCLUSION OF THIRD PARTY RIGHTS

      The parties to this Agreement do not intend that any term of this
      Agreement should be enforced, by virtue of the Contracts (Rights of Third
      Parties) Act 1999, by any person who is not a party to this Agreement.

32.   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.

33.   GOVERNING LAW

      This Agreement is governed by, and shall be construed in accordance with,
      the laws of England.

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

<PAGE>
                                       28

SCHEDULE 1

THE SERVICES

In addition to the Services set out in the body of the Servicing Agreement, the
Servicer shall:

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

      (b)   keep records for all taxation purposes and Value Added Tax;

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

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

      (e)   provide a redemption statement upon the request of a Borrower or the
            Borrower's solicitor or licensed conveyancer;

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

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

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

      (i)   act as collection agent for the Mortgages Trustee under the Direct
            Debiting Scheme in accordance with the provisions of this Agreement;
            and

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

<PAGE>
                                       29

SCHEDULE 2

FORM OF QUARTERLY POOL CUT

<TABLE>
<CAPTION>
---------------------------------------------------------- --------------------------------------------------------
FIELD                                                      DESCRIPTION
---------------------------------------------------------- --------------------------------------------------------
<S>                                                        <C>
Year/Month                                                 Processing year and month in YYYYMM format
---------------------------------------------------------- --------------------------------------------------------
Account Number                                             Unique Mortgage Account Identifier
---------------------------------------------------------- --------------------------------------------------------
Original Advance
---------------------------------------------------------- --------------------------------------------------------
Original Property Valuation                                The valuation details for the property
---------------------------------------------------------- --------------------------------------------------------
Current Loan balance                                       Includes Capital, Interest, Arrears and Unpaid Charges
---------------------------------------------------------- --------------------------------------------------------
Current Property Valuation                                 Most recent valuation.  It will be equal to original
                                                           valuation if no further valuation was done
---------------------------------------------------------- --------------------------------------------------------
Completion Date                                            The date the advance was completed
---------------------------------------------------------- --------------------------------------------------------
Maturity Date                                              The expected Loan maturity date
---------------------------------------------------------- --------------------------------------------------------
Method of Repayment                                        Code to signify types of Loans: e.g. Endowment,
                                                           Interest Only, Repayment, Pension, Investment Linked
---------------------------------------------------------- --------------------------------------------------------
First Income                                               First applicant's primary income
---------------------------------------------------------- --------------------------------------------------------
Second Income                                              Second applicant's primary income
---------------------------------------------------------- --------------------------------------------------------
Post Code                                                  Property postcode
---------------------------------------------------------- --------------------------------------------------------
MIG Cover Amount                                           Amount of MIG Policy cover
---------------------------------------------------------- --------------------------------------------------------
Current Arrears Balance                                    Includes unpaid interest, unpaid capital, unpaid
                                                           charges
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current)                               Arrears (current month) divided by payment due
                                                           (current month)
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 1)                           Arrears at the end of previous month divided by
                                                           previous months payment due
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 2)                           Arrears at the end of 2 months prior to current month,
                                                           divided by payment due for that month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 3)                           As above, but for 3 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 4)                           As above, but for 4 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 5)                           As above, but for 5 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 6)                           As above, but for 6 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 7)                           As above, but for 7 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 8)                           As above, but for 8 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 9)                           As above, but for 9 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 10)                          As above, but for 10 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 11)                          As above, but for 11 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Arrears Multiplier (Current - 12)                          As above, but for 12 months prior to current month
---------------------------------------------------------- --------------------------------------------------------
Property type                                              House, flat, etc.
---------------------------------------------------------- --------------------------------------------------------
Loan Use                                                   House purchase or remortgage
---------------------------------------------------------- --------------------------------------------------------
Property Use                                               Owner occupied, rental, etc
---------------------------------------------------------- --------------------------------------------------------
Product code                                               Code identifier for the product
---------------------------------------------------------- --------------------------------------------------------
MAR                                                        Monthly amount repayable
---------------------------------------------------------- --------------------------------------------------------
Arrangement start date                                     Where an arrangement exists for the primary account
                                                           the field is populated with the arrangement start date
---------------------------------------------------------- --------------------------------------------------------
Arrangement term                                           Where an arrangement exists for the primary account
                                                           the field is populated with the number of months for
                                                           which the arrangement is to apply
---------------------------------------------------------- --------------------------------------------------------
Arrangement amount                                         Amount dependent on the arrangement type below
---------------------------------------------------------- --------------------------------------------------------
Arrangement type                                           Code for the arrangement type
---------------------------------------------------------- --------------------------------------------------------
</TABLE>

<PAGE>
                                       30

SCHEDULE 3

HOLMES FINANCING NO. ___ PLC
PERIODIC REPORT
FOR PERIOD ___ TO ___

MORTGAGE ASSET ANALYSIS

ANALYSIS OF MORTGAGE TRUST MOVEMENTS

<TABLE>
<CAPTION>
                              -----------------------------------          -----------------------------------
                              CURRENT PERIOD                               CUMULATIVE
                              ----------------- -----------------          ----------------- -----------------
                              NUMBER            VALUE (POUND)000'S               NUMBER      VALUE (POUND)000'S
                                                                           ----------------- -----------------
<S>                           <C>               <C>                        <C>               <C>
Brought Forward
Replenishment
Repurchased
Redemptions
Other Movements
                              ----------------- -----------------          ----------------- -----------------
Carried Forward
                              ================= =================          ================= =================
</TABLE>

<TABLE>
                                               ------------------
<S>                                            <C>                <C>
Annualised 1 month CPR                         %                  (including redemptions and repurchases)
                                               ------------------
Annualised 3 month CPR                         %
                                               ------------------
Annualised 12 month CPR                        %
                                               ------------------

ASSET PROFILES
                                               ------------------
Weighted Average Seasoning                     months
                                               ------------------
Weighted Average Loan size
                                               ------------------
Weighted Average LTV                           %                  * (see definition below)
                                               ------------------
Weighted Average Remaining Term                years
                                               ------------------

                                               ------------------ ------------------
PRODUCT TYPE ANALYSIS                          VALUE (POUND)000'S       PERCENTAGE
                                               ------------------ ------------------
Variable Rate                                                     %
Fixed Rate                                                        %
Tracker Rate                                                      %
Flexible Mortgages                                                %
                                               ------------------ ------------------
                                                                  100.00%
                                               ================== ==================
</TABLE>

<PAGE>
                                       31

<TABLE>
<S>                                            <C>
MORTGAGE STANDARD VARIABLE RATE
                                               ------------------
Rate                                           %
                                               ------------------
Effective Date
                                               ------------------
</TABLE>

GEOGRAPHIC ANALYSIS

<TABLE>
<CAPTION>
------------------------------------ ----------------- ----------------- -----------------
REGION                               NUMBER            BALANCE           PERCENTAGE
------------------------------------ ----------------- ----------------- -----------------
<S>                                                                      <C>
East Anglia                                                              %
East Midlands                                                            %
Greater London                                                           %
North West                                                               %
North                                                                    %
South East                                                               %
South West                                                               %
Wales                                                                    %
West Midlands                                                            %
Yorkshire and Humberside                                                 %
Unknown                                                                  %
------------------------------------ ----------------- ----------------- -----------------
Total                                                                    100.00%
------------------------------------ ================= ================= =================
</TABLE>

                                     -------------------------------------------
                                     Abbey National has reallocated a number of
                                     Post Codes to different Geographical
                                     regions from those used in the prospectus
                                     and therefore some minor changes to
                                     distribution may be seen.
                                     -------------------------------------------

ORIGINAL LTV BANDS

<TABLE>
<CAPTION>
                                     ----------------- ----------------- -----------------
RANGE                                NUMBER            BALANCE           PERCENTAGE
                                     ----------------- ----------------- -----------------
<S>                                  <C>               <C>               <C>
0.00 - 25.00                                                             %
25.01 - 50.00                                                            %
50.01 - 75.00                                                            %
75.01 - 80.00                                                            %
80.01 - 85.00                                                            %
85.01 - 90.00                                                            %
90.01 - 95.00                                                            %
                                     ----------------- ----------------- -----------------
Total                                                                    100.00%
                                     ================= ================= =================
</TABLE>

                                     -------------------------------------------
*                                    The balance is the current outstanding
                                     balance on the account including accrued
                                     interest.

                                     The LTV is that at origination and excludes
                                     any capitalised high loan to value fees,
                                     valuation fees or booking fees.
                                     -------------------------------------------

<PAGE>
                                       32

ARREARS

<TABLE>
<CAPTION>
                                     ---------------- ----------------------- ---------------------- -------------------
BAND                                 NUMBER           PRINCIPAL(POUND)000'S     OVERDUE(POUND)000'S      PERCENTAGE
                                     ---------------- ----------------------- ---------------------- -------------------
<S>                                  <C>              <C>                     <C>                    <C>
CURRENT                                                                                              %
1.00 - 1.99 months                                                                                   %
2.00 - 2.99 months                                                                                   %
3.00 - 3.99 months                                                                                   %
4.00 - 4.99 months                                                                                   %
5.00 - 5.99 months                                                                                   %
6.00 - 11.99 months                                                                                  %
12 months and over                                                                                   %
Properties in Possession                                                                             %
                                     ---------------- ----------------------- ---------------------- -------------------
Total                                                                                                100.00%
                                     ================ ================= ===============================================

                                     ----------------- ----------------- -----------------------------------------------
</TABLE>

                                     -------------------------------------------
DEFINITION OF ARREARS                This arrears multiplier is calculated as
                                     the arrears amount (which is the difference
                                     between the expected monthly repayments and
                                     the amount that has actually been paid,
                                     i.e. a total of under and/or over payments)
                                     divided by the monthly amount repayable. It
                                     is recalculated every time the arrears
                                     amount changes, i.e. on the date when a
                                     payment is due.
                                     -------------------------------------------

SHARES OF TRUST LAST DISTRIBUTION DATE (___)

                                           ------------------ ------------------
                                           VALUE (POUND)000'S       PERCENTAGE
                                           ------------------ ------------------
Funding Share                                                 %
Seller Share                                                  %
                                           ------------------ ------------------
                                                              100.00000%
                                           ================== ==================

                                           ------------------ ------------------
Minimum Seller Share                                          %
                                           ------------------ ------------------

CASH ACCUMULATION LEDGER

                                               ------------------
                                               VALUE (POUND)000'S
                                               ------------------
Brought Forward
Additional Amounts Accumulated
Payment of Notes
                                               ------------------
Carried Forward
                                               ==================

EXCESS SPREAD
                                               ------------------
Current month                                  %
                                               ------------------
Rolling 3 month average                        %
                                               ------------------

<PAGE>
                                       33

PROPERTIES IN POSSESSION

STOCK

<TABLE>
<CAPTION>
                                 -----------------------------------          -----------------------------------
                                 CURRENT PERIOD                               CUMULATIVE
                                 ----------------- -----------------          ----------------- -----------------
                                 NUMBER            VALUE (POUND)000'S         NUMBER            VALUE (POUND)000'S
                                 ----------------- -----------------          ----------------- -----------------
<S>                              <C>               <C>                        <C>               <C>
Brought Forward
Repossessed in Period
Sold in Period
                                 ----------------- -----------------          ----------------- -----------------
Carried Forward
                                 ================= =================          ================= =================
</TABLE>

REPOSSESSION SALES INFORMATION
                                           ---------------------
Average time Possession to Sale            days
                                           ---------------------
Average arrears at time of Sale
                                           ---------------------

MIG CLAIM STATUS

                                           ------------------ ------------------
                                           NUMBER             VALUE (POUND)000'S
                                           ------------------ ------------------
MIG Claims made
                                           ------------------ ------------------
MIG Claims outstanding
                                           ------------------ ------------------

                                           ------------------
Average time claim to payment              days
                                           ------------------

<PAGE>
                                       34

SCHEDULE 4

CERTIFICATE OF BENEFICIAL OWNERSHIP

..................................... (the "Investor"), hereby certifies that it
is the beneficial owner of notes iSSUED by Holmes Financing (No. ___) PLC (the
"Issuer").

Unless otherwise defined herein, terms used herein shall have the same meaning
as used in the Amended and Restated Servicing Agreement dated ___. Pursuant to
clause 12.4(D) of the Amended and Restated Servicing Agreement, the Investor
requests that the Servicer deliver to it by e-mail the Monthly Reports
[(including all previous Monthly Reports)].

The Investor shall promptly notify the Servicer if it ceases to be a beneficial
owner of the notes.

Upon ceasing to be a beneficial owner of the notes, the Investor acknowledges
that the Servicer shall have no further obligation to deliver Monthly Reports to
it.

The notice details for the Servicer and the Investor are as follows:

SERVICER

Address:       Abbey National plc, Abbey House (AAM 126), 201 Grafton Gate East,
               Milton Keynes, MK9 1AN

Facsimile number: (44) 01908 343019

For the attention of:     Securitisation Team, Business Relationship Management

INVESTOR

E-mail address:   [                            ]

Signed by .................................... as authorised representative on
                                               behalf of the Investor.

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

Dated [                                   ]

<PAGE>
                                       36

EXECUTION

The Common Seal of                             )
ABBEY NATIONAL PLC in its                      )
capacity as Servicer was affixed in the        )
presence of:                                   )

Executed as a deed by                          )
HOLMES TRUSTEES LIMITED acting by two          )
directors                                      )

The Common Seal of                             )
ABBEY NATIONAL PLC in its                      )
capacity as Seller was affixed                 )
in the presence of:                            )

Executed as a deed by                          )
HOLMES FUNDING LIMITED acting by two           )
directors                                      )

Executed as a deed by                          )
JPMORGAN CHASE BANK,                           )
LONDON BRANCH acting by its                    )
attorney in the presence of:                   )

CB022900147

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]