Mortgage Funding 2008-1 PLC

A new name from the Lehman stable of RMBS transactions, but following closely in the footsteps of the Eurosail
and Southern Pacific series of latter years.

The underlaying residential mortgages have been originated by either Preferred Mortgages Ltd (18.21% of loans,
26.50% of balance), Southern Pacific Mortgage Ltd (74.68% of loans, 64.84% of balance), (all three being Lehman
subsiduaries), Matlock London (5.91% of loans, 6.12% of balance) and Alliance & Leicester (1.21% of loans, 2.54%
of balance).

The initial portfolio (Substitute Loans, Additional Loans, Ported Loans, Newly-Originated Loans and Prefunded Loans
may, subject to certain conditions, be acquired by the Issuer from the Sellers after the Closing Date) comprises of
13,004 loans. The average original balance is Stg77,661, and there is an initial LTV of higher than 90% on 13.82% of
the loans (23.23% of outstanding balance), whereas the overall initial weighted LTV is 80.31%.

Purpose & type of loans: initial purchase, 3,182 loans (37.13% of mortgage pool balance); re-mortgage 9,822 (62.87%
of pool balance); buy-to-let 590 loans (4.54%, 7.38% of balance) . Interest-only loans total 5,162 (39.70% of loans,
61.03% of pool balance), and capital & interest loans total 7,767 (59.73% of loans, 38.00% of pool balance). Near
Prime account for 6,827 loans (45.97% of initial pool balance), sub-prime 6,064 loans (52.14% of initial pool balance).
Geographically, Greater London & the South East account for 29.11% of the initial loans (36.53% of initial pool balance).


In the Initial Mortgage Pool approximately 5.81 per cent. of the Loans have been characterized as “non-compliant” ie do
not comply with, amongst other things, the Lending Criteria and the standard mortgage documentation reference. Self
-certified buyers total 7,311 (56.22% of loans, 53.32% of initial pool balance). The % of borrowers with at least 1 CCJ
awarded against them is 12.67% of total loans. At close of initial pool, 1,524 of the loans had greater than 90 days’
arrears (11.72% of total loans, 13.52% of initial pool balance).


Compare/contrast: Eurosail-UK 2007-6 NC, Southern Pacific Securities 06-1 plc, EMF-UK 2008-1 PLC
Eurosail-UK 2007-6 NC Southern Pacific Securities 06-1 plcEMF-UK 2008-1 PLC