Ludgate Funding 2008 - W1 Plc

This latest securitisation from the Merril Lynch Ludgate RMBS note issuance vehicle sees a further
securitisation of loans originated by Freedom Funding Limited, which has now changed its name to
Wave, and a 100% owned subsidiary of MLIB.

The provisional portfolio consists of 2,515 loans secured by first lien mortgages over residential
property in England and Wales or by a first lien standard security in the case of Scottish properties.
The portfolio is not exactly static, but substitution is only contemplated for loans that are removed
from the portfolio due to a breach of representations and warranties.

Regarding the pool, 62.74% of the loans are buy-to-let, and 5.15% of the loans by initial aggregate
balance are to first time buyers. Additionally, 31.57% of the pool by value are loans to self employed
and employed borrowers who self-certified their income. The current pool also contains 4.02% by
value of loans with county court judgements and 0.52% by value of loans with a satisfied bankruptcy
order or Individual Voluntary Arrangement. Overall, approximately 12.21% of the pool is made up of
non-prime collateral.

Some 51.21% of the loans in the provisional pool have a rate of interest linked to Bank of England
Base Rate (BBR). There are also 48.79% with an initial fixed rate and these will eventually revert to a
margin over BBR. Of note, is that 79.94% of the provisional pool by value consists of loans with
“teaser” discount rates that are below the stabilised rates to which they will revert at the end of the
teaser period. 90.18% of the loans are interest-only.

Geographically, London, Greater London & the South East accounts for 39.44% of the portfolio. The
average current outstanding balance is Stg£159,039, with weighted average seasoning of the pool
being 7.83 months. The WA current LTV is 83.74%.


Compare/contrast: Ludgate 2007-FF1, Mansard Mortgages 2007-2, Mortgage Funding 2008-1 PLC.
Ludgate Funding 2007- FF1 PlcMansard Mortgages 2007-2Mortgage Funding 2008-1 PLC