Ludgate Funding 2007- FF1 Plc

The second transaction to be launched off the Merril RMBS Ludgate note issuance programme which
was set up in Nov 2006, with on both occasions the underlaying collateral being originated via Freedom
Finance Ltd, a wholly owned subsidiary of Merrill Lynch.

The collateral consists of 2,725 first ranking mortgage loans secured on residential properties located in
England, Wales and Scotland. All of the loans in the pool were underwritten to Freedom Funding Limited’s
internal guidelines, and there have been no loans made to borrowers with previous adverse credit, IVA
or bankruptcy scenarios.

Of the total pool, 53.50% of the loans consists of Buy to Let mortgages, self-employed borrowers acc-
ount for 57.44% of the pool, and borrowers with limited verification of their income make up 42.97% of
the pool. The loans were granted for outright purchases (61.63%) and for re-mortgage purposes
(38.37%), and a relatively high proportion of the pool (85.20%) consists of interest-only loans.

The pool has a relatively high percentage of its total pools to London and South East region (35.75%),
with the next three areas of regional concentration being: the North West (15.89%), the South West
(10.33%), and Yorks/Humberside (9.64%). The average loan size is Stg152,703 with average season-
ing of just over 4 1/2mnths. The current WA LTV is 81.51% (Ludgate 2006, seasoning 1yr, LTV 80.27%)


Compare/contrast: Ludgate 2006-FF1, ALBA 2007-1, Newgate 2007-2