Arkle 2007-1 plc

The third issue in 7mnths off the Arkle Master Issuer Programme from originator Cheltenham &
Gloucester which updated the Programme some 7days before issuance (see EuroABS for details).
The trust size has substantially increased to Stg43.72bln, from Stg14.1bln as of the March 2007
investor report.

The provisional pool (the mortgage pool will continue to revolve. The seller can sell new mortgages
in the trust, subject to certain eligibility criteria) will consist of 422,974 loans, with an average loan
size of Stg103,352, a weighted-average seasoning of over 30mnths, and a weighted-average LTV
ratio of 69.8%. Eligibility of the loans: each mortgage loan must be originated by the seller and be
sterling-denominated; the final maturity date of each loan cannot be later than February 2050; no
loan can have a current balance of more than Stg1mln; no loan in the portfolio can be a buy-to-let or
an offset loan.

This provisional portfolio contains 55.85% pre-payment and 44.15% interest-only loans while 23%
of the pool by value was to borrowers without income verification. THe pool is also heavily concen-
trated in the Southeast (including London) where 44.17% is based. The West Midlands (10.70%),
and the Northwest (6.71%) are the other main regional areas.

Approximately 70% of customers were repeat buyers of the name, and with the deal set and kept at
Stg3bln, it priced comfortably across the board with the AAA classes beating recent deals from Granite
and Gracechurch by 1bps.


Compare/contrast: Arkle 2006-2, Gracechurch Mortgage Funding (2007-1), Granite Master 2007-2