Docstoc

Investor Terms August 2010

Document Sample
Investor Terms August 2010 Powered By Docstoc
					  GLOSSARY OF TERMS AND KEY DATA
FOR THE INVESTOR REPORTS AND POOL
              TABLES
                        Called Securitisations from 31/12/2001 to 01/11/2006
                 Deal                                                 Note          Note Repayment
                                                                   Repayment              Date
                 Ho mer Finance (No.3) PLC                        £21,536,000         31/ 12/ 2001
                 Ho meloans (No.1) PLC                            £22,436,000         31/ 01/ 2002
                 Ho meloans (No.2) PLC                            £44,363,000         28/ 02/ 2002
                 Ho meloans (No.3) PLC                            £96,603,000         31/ 01/ 2002
                 Finance for People (No.1) PLC                    £69,757,000         28/ 02/ 2002
                 Finance for People (No.2) PLC                    £74,122,000         31/ 12/ 2001
                 Finance for People (No.3) PLC                    £246,520,000        31/ 12/ 2001
                 Finance for People (No.4) PLC                    £82,305,000         30/ 04/ 2004
                 Paragon Mortgages (No.1) PLC                     £101,270,000        15/ 04/ 2004
                 Paragon Mortgages (No.2) PLC                     £102,601,000        15/ 09/ 2004
                 Paragon Mortgages (No.3) PLC                     £238,007,000        08/ 11/ 2004
                 Paragon Auto and Secured Finance (No.1) PLC      £194,998,000        15/ 11/ 2004
                 Paragon Personal and Auto Finance (No.1) PLC     £251,000,000        15/ 03/ 2005
                 Paragon Personal and Auto Finance (No.2) PLC     £244,700,000        15/ 04/ 2005
                 Paragon Mortgages (No.4) PLC                     £345,925,000        07/ 07/ 2005
                 Paragon Mortgages (No.5) PLC                     £179,532,000        07/ 06/ 2006
                 Ho meloans (No.4) PLC                            £74,371,000         15/ 06/ 2006
                 First Flexib le No.2 p lc                        £154,545,000        03/ 07/ 2006
                 Paragon Mortgages (No.6) PLC                     £561,658,000        15/ 09/ 2006
                 First Flexib le No.1 p lc                        £48,351,000         31/ 10/ 2006
                 First Flexib le No.3 p lc                        £111,703,000        01/ 11/ 2006

             Note upgrades/downgrades for the Paragon Mortgages Programme

         Note               Moody’s                S&P                      Fitch                 Time between
         Class                                                                                   closing & first
                                                                                                     upgrade
                                                                                                 (M/S&P/Fitch)
                        Initial   Revised    Initial   Revised       Initial     Revised
PM1          B            A1       Aa1         A        AA+                                    2.2 yrs / 2.2 yrs / -
PM2          B            A2        A1         A        AA-                                    2.7 yrs / 2.7 yrs / -
PM3          B            A2        A1         A        AA-                                    2.3 yrs / 2.1 yrs / -
PM4          B            A2        A2         A        AA-                                         - / 2.2 yrs / -
PM7          B                                 A         AA            A             AA-        - / 3.2 yrs/6.2 yrs
PSF1         C                                BBB       BBB-                                      - / 4.7 yrs / -
PM10         B                                                         AA           AAA           - / - / 4.7 yrs

                           Note upgrades for the First Flexible Programme

                 Note               Fitch                   S&P                Time between closing &
                 Class                                                           upgrade (Fitch/S&P)
                              Initial   Revised   Initial    Revised
       FF4        M             A        AA-        A         AA-                    5.4 yrs / 5 yrs
       FF4        M            AA-       AAA       AA-         AA                   6.4 yrs / 7.4 yrs
       FF4        B            BBB        A        BBB         A-                    5.4 yrs / 5 yrs
       FF4        B             A        AA-                                           6.4 yrs / -
       FF5        M                                 A          A+                      - / 4.1 yrs
       FF5        M                                 A+         AA                      - / 6.5 yrs
       FF5        B                                BBB        BBB+                     - / 4.1 yrs
                                                                                                          1
              Glossary of Terms
                                Contents


Current Mortgage Backed Transactions ………………………………………....3-17

     Paragon Mortgages (No.7) PLC
     Paragon Mortgages (No.8) PLC
     Paragon Mortgages (No.9) PLC
     Paragon Mortgages (No.10) PLC
     Paragon Mortgages (No.11) PLC
     Paragon Mortgages (No.12) PLC
     Paragon Mortgages (No.13) PLC
     Paragon Mortgages (No.14) PLC
     First Flexible (No.7) PLC
     Paragon Mortgages (No.15) PLC

Current Consumer Finance Backed Transactions …………………………….18-33

     Paragon Secured Finance (No.1) PLC
     Paragon Personal and Auto Finance (No.3) PLC




                                                              2
  Glossary of Terms
                                                                                    Current Mortgage Backed Transactions (PM7 – PM15)

Issuer                                                       PM15                      PM14                    FF7                    PM13                        PM12                        PM11                    PM10                         PM9                         PM8                              PM7
Closing Date                                             19 July 2007              22 March 2007          25 January 2007        26 October 2006                20 July 2006             23 March 2006          17 November 2005              19 July 2005               27 October 2004                  26 May 2004
Lead Managers                                        ABN Amro/Barclays/JPM       Deutsche/RBS/HSBC            Barclays        ABN Amro/Barclays/RBS       Barclays/Deutsche/HSBC       JPM/Deutsche/RBS         Barclays/Deutsche               JPM/RBS                   Deutsche/JPM                    RBS/Barclays
Rating Agencies                                        Moody's/S&P/Fitch          Moody's/S&P/Fitch          S&P/Fitch          Moody's/S&P/Fitch            Moody's/S&P/Fitch         Moody's/S&P/Fitch        Moody's/S&P/Fitch             Moody's/S&P               Moody's/S&P/Fitch               Moody's/S&P/Fitch
GBP Equivalent Note Value                               £1,001,132,732             £1,500,274,892          £268,600,000           £1,500,190,204               £1,500,204,648            £1,000,050,466           £1,000,352,569              £700,000,000                £1,000,000,000                  £900,700,464
% of Prefunding                                             18.85%                     22.81%                    n/a                  27.65%                        0.00%                     0.00%                    0.00%                      0.00%                       26.99%                         23.32%
% of AAA Notes                                              85.01%                     84.99%                 97.00%                  88.02%                       86.54%                    86.75%                   88.58%                     89.20%                       90.00%                         89.98%
% of AA Notes                                                7.50%                      7.51%                  1.50%                   7.49%                        7.46%                     7.25%                    4.42%                      3.90%                         N/A                            N/A
% of A Notes                                                 7.49%                      7.50%                  1.50%                   4.49%                        6.00%                     6.00%                    7.01%                      6.90%                       10.00%                         10.02%
% of First Loss Fund                                         1.90%                      1.90%                  0.30%                   1.90%                        1.90%                     1.90%                    1.86%                      1.76%                        1.90%                          2.20%
% of Margin Reserve Fund                                     0.62%                      0.63%                   N/A                     N/A                          N/A                       N/A                      N/A                        N/A                          N/A                            N/A
% of Flexible Drawing Facility                                N/A                       0.50%                  3.12%                   1.00%                         N/A                       N/A                     0.57%                      1.43%                        0.50%                           N/A
Minimum Mortgage Rate                                  GBP LIBOR + 1.6%          GBP LIBOR + 1.6%        GBP LIBOR + 1.8%       GBP LIBOR + 1.6%            GBP LIBOR + 1.6%           GBP LIBOR + 1.6%         GBP LIBOR + 1.6%            GBP LIBOR + 1.6%            GBP LIBOR + 1.6%                GBP LIBOR + 1.6%
Note Margins:
2a-7 Notes                                                   0.00%                     0.00%                     N/A                   -0.01%                      -0.02%                     -0.01%                    0.00%                          N/A                        N/A                              N/A
AAA/Aaa/AAA Fast Pay Notes (Sterling)                         N/A                       N/A                      N/A                     N/A                         N/A                        N/A                       N/A                          N/A                       0.11%                             N/A
AAA/Aaa/AAA Fast Pay Notes (Euros)                            N/A                       N/A                      N/A                     N/A                         N/A                        N/A                       N/A                          N/A                       0.11%                             N/A
AAA/Aaa/AAA Fast Pay Notes (Dollars)                          N/A                       N/A                      N/A                     N/A                         N/A                        N/A                       N/A                          N/A                        N/A                              N/A
AAA/Aaa/AAA Slow Pay Notes (Sterling)                        0.13%                     0.10%                    0.12%                   0.12%                       0.12%                      0.12%                    0.16%                        0.18%                       0.19%                            0.21%
AAA/Aaa/AAA Slow Pay Notes (Euros)                           0.12%                     0.10%                     N/A                    0.12%                       0.12%                      0.12%                    0.16%                        0.18%                       0.18%                            0.21%
AAA/Aaa/AAA Slow Pay Notes (Dollars)                         0.11%                     0.10%                     N/A                    0.09%                       0.11%                       N/A                       N/A                        0.18%                        N/A                             0.21%
AA/Aa2/AA Notes (Sterling)                                   0.27%                     0.18%                    0.18%                   0.20%                       0.24%                      0.24%                    0.27%                        0.29%                        N/A                              N/A
AA/Aa2/AA Notes (Euros)                                      0.27%                     0.18%                     N/A                    0.19%                       0.24%                      0.24%                    0.27%                        0.29%                        N/A                              N/A
AA/Aa2/AA Notes (Dollars)                                     N/A                       N/A                      N/A                     N/A                         N/A                        N/A                       N/A                          N/A                        N/A                              N/A
A/A2/A Notes (Sterling)                                       N/A                      0.38%                    0.28%                   0.40%                       0.46%                       N/A                     0.55%                        0.52%                       0.65%                             N/A
A/A2/A Notes (Euros)                                         0.55%                     0.38%                     N/A                    0.39%                       0.46%                      0.45%                    0.55%                        0.52%                       0.60%                            0.75%
A/A2/A Notes (Dollars)                                        N/A                       N/A                      N/A                     N/A                         N/A                        N/A                       N/A                          N/A                        N/A                             0.75%
Senior Administration Fee                                    0.15%                     0.05%                    0.15%                   0.15%                       0.15%                      0.15%                    0.15%                        0.15%                       0.10%                            0.10%
Junior Administration Fee                                    0.15%                     0.25%                    0.15%                   0.15%                       0.15%                      0.15%                    0.15%                        0.15%                       0.20%                            0.20%
Substitute Administrator's Commitment Fee                   0.004%                    0.004%                   0.004%                  0.004%                      0.004%                     0.004%                   0.004%                       0.004%                      0.004%                           0.004%
Optional Redemption Date                                   June 2011                 March 2011              March 2011             October 2010                 August 2010                April 2010            December 2009                   May 2009                   October 2008                      May 2008
Step Up Date                                               June 2012                 March 2012              March 2012             October 2011                 August 2011                April 2011            December 2010                   May 2010                   October 2010                      May 2010
Determination Events to pay down the Subordinate              N/A                       N/A              % Class B and C    % Class B and C Notes to    % Class B and C Notes to      % Class B and C        Later of i) 5 years from     Later of i) 5 years from Later of i) 5 years from       Later of i) 5 years from closing
Notes                                                                                                    Notes to total     total Notes equals 23.96%   total Notes equals 26.93%     Notes to total Notes   closing ii) % Class B and    closing ii) % Class B and closing ii) % Class B Notes   ii) % Class B Notes to total
                                                                                                         Notes equals                                                                 equals 26.51%          C Notes to total Notes       C Notes to total Notes    to total Notes equals 20%     Notes equals 20.04%
                                                                                                         6.03%                                                                                               equals 22.84%                equals 21.6%
Clean Up Call (20% of the Closing GBP Note Value)         £200,226,546              £300,054,978             £53,720,000           £300,038,041                £300,040,930                £200,010,093            £200,070,514                 £140,000,000                 £200,000,000                  £180,140,093
                                                                                                                                                                                                                                                                     Class A Notes - April 2035   Class A Notes - May 2034 Class
Note Maturity Dates                                      December 2039              September 2039        September 2033          January 2039                November 2038               October 2041                June 2041                   May 2041           Class B Notes - April 2044         B Notes - May 2043
Class A1 Note Conditional Purchaser                            JPM                       RBS                   N/A                  ABN Amro             Sheffield Receivables Corp     RBS and Deutsche     Sheffield Receivables Corp             N/A                         N/A                              N/A
Class A1 Note Annual Mandatory Transfer Dates             16 June 2008             17 December 2007            N/A                 15 July 2007                 15 May 2007              15 January 2007        15 September 2006                   N/A                         N/A                              N/A
Class A1 Note Maximum Reset Margin                  0.09% until June 2012 and   0.10% until March 2012                       0.12% until October 2011    0.12% until August 2011
                                                        0.18% thereafter         and 0.20% thereafter          N/A             and 0.24% thereafter        and 0.24% thereafter                0.10%                  0.09%                          N/A                        N/A                              N/A
Provisional Pool Balance                                  £677,081,500              £787,288,896           £297,969,550            £592,518,619                £683,290,013                £465,705,238            £657,952,600                 £558,877,505               £716,154,769                     £557,171,810
Originator                                                  PML/MTL                   PML/MTL              PML/MTL/MTS               PML/MTL                     PML/MTL                     PML/MTL                 PML/MTL                      PML/MTL                    PML/MTL                          PML/MTL
% of PML at Closing                                          47.19%                    38.30%                 4.07%                   57.61%                      60.00%                      40.75%                  49.54%                       59.43%                     76.43%                           91.86%
% of MTL at Closing                                          52.81%                    61.70%                95.93%                   42.39%                      40.00%                      59.25%                  50.46%                       40.57%                     23.57%                            8.14%
% of Buy to Let Mortgages at Closing                          100%                      100%                   N/A                     100%                        100%                        100%                    100%                         100%                      98.73%                           97.92%
% of Owner Occupied Mortgages at Closing                      0.00%                     0.00%                97.04%                    0.00%                       0.00%                       0.00%                   0.00%                        0.00%                      1.27%                            2.08%
% of Commercial Mortgages at Closing                           N/A                       N/A                  2.90%                     N/A                         N/A                         N/A                     N/A                          N/A                        N/A                              N/A
% of Professional Landlords at Closing                       45.19%                    47.57%                  N/A                    66.45%                      63.30%                      53.69%                  60.95%                       70.56%                     81.64%                           75.50%
% of Private Investor Landlords at Closing                   54.81%                    52.43%                  N/A                    33.55%                      36.70%                      46.31%                  39.05%                       29.44%                     17.08%                           22.41%
WA LTV at Closing                                            79.34%                    79.13%                57.12%                   78.73%                      79.74%                      80.53%                  78.70%                       77.99%                     76.45%                           76.65%
WA ICR at Closing                                             1.53%                     1.50%                  N/A                     1.82%                       1.68%                       1.76%                   1.73%                        1.95%                      2.12%                            2.01%
WA Seasoning at Closing (months)                               1.33                      2.31                 132.48                   14.70                        9.65                        9.64                    7.68                        18.43                      24.53                            20.02
Arrears > 1 month at Closing                                  0.00%                     0.15%                 7.83%                    0.26%                       0.28%                       0.07%                   0.36%                        0.36%                      0.58%                            0.64%




                                                                                                                                                                                                                                                                                                                                     3
         Glossary of Terms
             Note: This document is an aid to understanding the Investor Reports and not a comprehensive list of all Legally Defined Term s
             held within the agreements of each Securitisation. This document will be updated in line with Investor feedback.


                            GLOSSARY OF TER MS FOR THE INVES TOR REPORTS ISSUED B Y
                                PARAGON FINANCE PLC ON B EHALF OF THE ISS UERS


             Current Mortgage Backed Transactions



Issuers                                                  Closing Date                 Originators                 Quarter Ends for the Issuers


Paragon Mortgages (No.7) PLC             “PM7”           26 May 2004                  PML and MTL                 January/April/Ju ly/October


Paragon Mortgages (No.8) PLC             “PM8”           27 October 2004              PML and MTL                 March/June/September/December


Paragon Mortgages (No.9) PLC             “PM9”           19 July 2005                 PML and MTL                 January/April/Ju ly/October


Paragon Mortgages (No.10) PLC            “PM10”          17 November 2005             PML and MTL                 February/May/August/November


Paragon Mortgages (No.11) PLC            “PM11”          23 March 2006                PML and MTL                 June/September/December/March


Paragon Mortgages (No.12) PLC            “PM12”          20 July 2006                 PML and MTL                 October/January/April/July


Paragon Mortgages (No.13) PLC            “PM13”          26 October 2006              PML and MTL                 December/March/June/September


First Flexib le (No.7) PLC               “FF7”           25 January 2007              PML, MTL and                February/May/August/November
                                                                                      MTS

Paragon Mortgages (No.14) PLC            “PM14”          22 March 2007                PML and MTL                 August/November/February/May


Paragon Mortgages (No.15) PLC            “PM15”          19 July 2007                 PML and MTL                 February/May/August/November




             Abbreviation for the Originators

             PML        =          Paragon Mortgages Limited
             MTL        =          Mortgage Trust Limited
             MTS        =          Mortgage Trust Services




                                                                                                                                              4
                  Glossary of Terms
                                      CURRENT MORTGAGE BACKED TRANSACTIONS – PM7-15 and FF7

                                                        (1) SECURITY LEVEL DATA SECTION – PA GE 1

      Paragon Mortgages (No.12) PLC
      This performance report is issued by Paragon Finance PLC for and on behalf of Paragon Mortgages (No.12) PLC

      N.B. This data fact sheet and its notes can only be a summary of certain features of the bonds and their structure. No representation can be made that the information herein is accurate or complete and no liability is accepted therefor. Reference should be made to the issued
      documentation for a full description of the bonds and their structure. This data fact sheet and its notes are for information purposes only and are not intended as an offer or invitation with respect to the purchase or sale of any security. Reliance should not be placed on the
      information herein when making any decision whether to buy, hold or sell bonds (or other securities) or for any other purpose.


                                                                                                                   http://www.paragon-group.co.uk
      FOR FURTHER ASSISTANCE ON THE INVESTOR REPORTS, PLEASE REFER TO THE "INVESTOR TERMS" POSTED ON THE PARAGON WEBSITE

      Summary Transaction Features


      Name of Issuer                                                                                                                                                                                                                                                                                                                                                                                   PM12 PLC
      Originator % at Closing                                                                                                                                                                                                                                                                                                                    PML            60.00%         MTL            40.00%
      Originator % at the Quarter End                                                                                                                                                                                                                                                                                                            PML            64.52%         MTL            35.48%
      Date of Issue                                                                                                                                                                                                                                                                                                                                                                                     20-Jul-06
      Date of Production                                                                                                                                                                                                                                                                                                                                                                                17-Aug-10

      Security Level Data                                                                                                                                                                                                                                                                                                                                                Senior/Subordinate

                                                                                                                                     Class A1 Notes                           Class A2a Notes                       Class A2b Notes                 Class A2c Notes                 Class B1a Notes    Class B1b Notes   Class C1a Notes    Class C1b Notes
      Moody's Rating at Closing                                                                                                         P-1/Aaa                                      Aaa                                   Aaa                             Aaa                             Aa2                Aa2               A2                 A2
      Standard & Poor's Rating at Closing                                                                                              A-1+/AAA                                     AAA                                   AAA                             AAA                              AA                 AA                 A                  A
      Fitch Rating at Closing                                                                                                          F1+/AAA                                      AAA                                   AAA                             AAA                              AA                 AA                 A                  A
      Current Moody's Rating                                                                                                            P-1/Aaa                                      Aaa                                   Aaa                             Aaa                             Aa2                Aa2               A2                 A2
      Current Standard & Poor's Rating                                                                                                 A-1+/AAA                                     AAA                                   AAA                             AAA                              AA                 AA                 A                  A
      Current Fitch Rating                                                                                                             F1+/AAA                                      AAA                                   AAA                             AAA                              AA                 AA                 A                  A
      ISIN                                                                                                                           XS0261644941                             XS0261646136                          XS0261646565                    XS0261647027                    XS0261647886       XS0261648850      XS0261650161       XS0261650674
      ISIN                                                                                                                           US69913BAA44                                    N/A                                   N/A                      US69913BAB27                           N/A                N/A               N/A                N/A
      Original Issue Amount ('000)                                                                                                     $1,500,000                                 £145,000                             € 245,000                        $311,000                        £25,000           € 126,000          £17,000           € 106,000
      Previous Outstanding Note Principal                                                                                               $967,671                                   £93,542                             € 158,053                        $200,631                        £25,000           € 126,000          £17,000           € 106,000
      Current Outstanding Note Principal                                                                                                $958,731                                   £92,677                             € 156,593                        $198,777                        £25,000           € 126,000          £17,000           € 106,000
      Original GBP Equivalent Note Principal                                                                                            £815,217                                  £145,000                              £168,966                        £169,022                        £25,000            £86,897           £17,000            £73,103                                                 £1,500,205
      Previous GBP Equivalent Note Principal                                                                                            £525,908                                   £93,542                              £109,002                        £109,038                        £25,000            £86,897           £17,000            £73,103                                                 £1,039,491
      Current GBP Equivalent Note Principal                                                                                             £521,049                                   £92,677                              £107,995                        £108,031                        £25,000            £86,897           £17,000            £73,103                                                 £1,031,753
      Current Pool Factor                                                                                                              0.6391543                                 0.6391550                             0.6391550                       0.6391543                       1.0000000          1.0000000         1.0000000          1.0000000
      Previous Pool Factor                                                                                                             0.6451142                                 0.6451148                             0.6451148                       0.6451142                       1.0000000          1.0000000         1.0000000          1.0000000
      Note Interest Margins:                                                                                                              12 bp                                     12 bp                                 12 bp                           11 bp                           24 bp              24 bp             46 bp              46 bp
      Current Note Interest Rates:                                                                                                     0.46094%                                  0.81625%                              0.80300%                        0.54588%                        0.93625%           0.92300%          1.15625%           1.14300%
      Previous Note Interest Rates:                                                                                                    0.37438%                                  0.76125%                              0.78300%                        0.36000%                        0.88125%           0.90300%          1.10125%           1.12300%
      GBP Note Margin                                                                                                                     14 bp                                     12 bp                                 12.bp                           13.bp                           24 bp              25 bp             46 bp              48 bp
      Current GBP Interest Rates                                                                                                       0.83658%                                  0.81625%                              0.81235%                        0.82445%                        0.93625%           0.94635%          1.15625%           1.17985%                                                   0.87%
      Previous GBP Interest Rates                                                                                                      0.78158%                                  0.76125%                              0.75735%                        0.76945%                        0.88125%           0.89135%          1.10125%           1.12485%
      Optional Redemption (Call) Dates                                                                                                 15-Aug-10                                 15-Aug-10                             15-Aug-10                      15-Aug-10                       15-Aug-10           15-Aug-10         15-Aug-10          15-Aug-10
      Step-up Dates                                                                                                                    15-Aug-11                                 15-Aug-11                             15-Aug-11                      15-Aug-11                       15-Aug-11           15-Aug-11         15-Aug-11          15-Aug-11
      Note Step-Up Margins                                                                                                                 N/A                                      24 bp                                 24 bp                           22 bp                           48 bp              48 bp             92 bp              92 bp
      GBP Step -Up Margins                                                                                                                TBA                                       24 bp                                 23 bp                           26 bp                           48 bp              50 bp             92 bp              97 bp

      Class B and C Notes as a percentage Class A Notes at issue                                                                                                                                                                                                                                                                                                                                         15.56%
      Outstanding Class B and C Notes as a percentage of Outstanding Class A Notes                                                                                                                                                                                                                                                                                                                       24.34%
      Determination Event for Paying Class B and C Notes                                                                                                                                                                                                                                                                                                                   Class A Notes        =       £548,103

      Class A1 Interest Payment Cycle                                                                                                                                                                                                                                                                                                                                                                    Monthly
      Class A2a, A2b, A2c B1a, B1b, C1a and C1b Interest Payment Cycle                                                                                                                                                                                                                                                                                                                                  Quarterly
      Quarterly Interest Payment Date                                                                                                                                                                                                                                                                                                                                                                   16-Aug-10
      Previous Quarterly Interest Period (No. of Days)                                                                                                                                                                                                                                                                                                    90                16-Feb-10                   16-May-10
      Current Quarterly Interest Period (No. of Days)                                                                                                                                                                                                                                                                                                     91                17-May-10                   15-Aug-10
      Class A1, A2b, A2c, B1b and C1b Interest Calculated on                                                                                                                                                                                                                                                                                                                                           ACTUAL/360
      Class A2a, B1a and C1a Interest Calculated on                                                                                                                                                                                                                                                                                                                                                    ACTUAL/365
      Record Date                                                                                                                                                                                                                                                                                                                                                                                       02-Aug-10



      PM12 INVESTOR REPORT QUARTER ENDING JULY 2010




                                      a. “Pool Factor”
                                      Equals on the first day of the interest period, the principal amount outstanding on all classes of notes
                                      (after deducting any principal repayment due on that day) divided by the following for PM7:

                                                                                                                              Class A1a Notes                                                            Class A1b Notes                                                            Class A1c Notes                                Class B1a Notes                                    Class B1b Notes
  Note Denomination                                                                                                           $100,000                                                                   £50,000                                                                    €500,000                                       $100,000                                           €500,000

                                      In respect of PM8, d ividing the principal amount outstanding on the first day of the interest period
                                      (after deducting any principal repayment due in that day) by the following:

                                                                                         Class A1a Notes                                                      Class A1b Notes                                                      Class A2a Notes                                                Class A2b Notes                           Class B1a Notes                                   Class B1b Notes
  Note Denomination                                                                      £50,000                                                              €50,000                                                              £50,000                                                        €50,000                                   £50,000                                           €50,000

                                      In respect of PM9, d ividing the principal amount outstanding on the first day of the interest period
                                      (after deducting any principal repayment due in that day) by the following:

                                                                       Class Aa Notes                                                  Clsss Ab Notes                                                  Class Ac Notes                                                  Class Ba Notes                                Class Bb Notes                            Class Ca Notes                               Class Cb Notes
  Note Denominations                                                   £50,000                                                         €50,000                                                         $100,000                                                        £50,000                                       €50,000                                   £50,000                                      €50,000

                                      In respect of PM10, d ividing the principal amount outstanding on the first day of the interest period
                                      (after deducting any principal repayment due in that day) by the following:

                                                                                    Class A1                                                             Clsss A2a                                                       Class A2b                                                        Class B1a                            Class B1b                                    Class C1a                                  Class C1b
                                                                                     Notes                                                                 Notes                                                           Notes                                                            Notes                                Notes                                        Notes                                      Notes
Note Denominations                                                                  $100,000                                                              £50,000                                                         €50,000                                                          £50,000                              €50,000                                      £50,000                                    €50,000

                                      In respect of PM11, d ividing the principal amount outstanding on the first day of the interest period
                                      (after deducting any principal repayment due in that day) by the following:

                                                                                                 Class A1                                                                 Clsss A2a                                                                 Class A2b                                                  Class B1a                                       Class B1b                                             Class C1b
                                                                                                  Notes                                                                     Notes                                                                     Notes                                                      Notes                                           Notes                                                 Notes
  Note Denominations                                                                             $100,000                                                                  £50,000                                                                   €50,000                                                    £50,000                                         €50,000                                               €50,000



                                      In respect of PM12, PM 13 and PM14, divid ing the principal amount outstanding on the first day of the
                                      interest period (after deducting any principal repay ment due in that day) by the following:
                                                                               Class A1                                               Clsss A2a                                              Class A2b                                                Class A2c                                       Class B1a                            Class B1b                        Class C1a                                Class C1b
                                                                                Notes                                                   Notes                                                  Notes                                                    Notes                                           Notes                                Notes                            Notes                                    Notes
 Note Denominations                                                            $100,000                                                £50,000                                                €50,000                                                 $100,000                                         £50,000                              €50,000                          £50,000                                  €50,000


                                                                                                                                                                                                                                                                                                                                                                                                             5
                                                          Glossary of Terms
           In respect of FF7, div iding the principal amount outstanding on the first day of the interest period (after
           deducting any principal repayment due in that day) by the follo wing:

                               Class A Notes   Class B Notes   Class C Notes
     Note Denominations           £50,000        £50,000          £50,000


           In respect of PM15, d ividing the principal amount outstanding on the first day of the interest period
           (after deducting any principal repayment due in that day) by the following:
                          Class A1       Clsss A2a      Class A2b       Class A2c     Class B1a      Class B1b       Class C1b
                           Notes           Notes          Notes           Notes         Notes          Notes           Notes
Note Denominations        $100,000        £50,000        €50,000        $100,000       £50,000        €50,000         €50,000



           b. “Current GBP Interest Rates”
           For PM7 – PM 15, these relate the GBP interest rates for the reported period i.e. the SPV’s GBP
           funding margin, wh ich is calculated on a weighted average basis by reference to the GBP equivalent
           note value on the preceding interest payment date. For FF7, this is the weighted average interest rate on
           the notes.

           c. “Determination Event”
           Class B and C note holders provide credit coverage for the Class A note holders at the closing date.
           When the Class A note holders are repaid, the coverage increases. On an interest payment date when
           the coverage number reaches a pre determined ratio as defined in the Offering Circu lar (appro ximately
           double the ratio at the closing date), Class B and C note holders are paid pro rata on the next
           succeeding interest payment date, ensuring that the ratio’s between Class B and C notes described in
           the Offering Circulars are maintained.

           For PM7 - 10, Class B and C note holders are repaid on the later of the interest payment date following
           (i) five years from the closing date and (ii) when Class B/C note coverage number reaches a pre
           determined ratio as defined in the Offering Circular , subject to meeting an arrears and PDL test.
           For PM11 - PM13 and FF7 the Class B and C note holders are repaid on the interest payment date
           following the point at which Class B/C note coverage reaches a pre determined ratio, as defined in the
           Offering Circu lar, subject to meeting an arrears and PDL test.

           The current position is as follows:
               PM7 - paying down pro rata.
               PM8 - paying down pro rata.
               FF7 - paying down pro rata.
               PM9 – paying down pro rata.
               PM10 - a five year lock in period to 15 December 2010. Subject to meeting the >3 months arrears
               being less than 7.5% and a zero PDL, the Notes will pay down pro rata, on 15th March 2011.
               PM11 - when the original GBP Equ ivalent of the deal halves in value, and subject to meeting the
               >3 months arrears being less than 7.5% and a zero PDL, the Notes will pay down pro rata.
               PM12 - when the original GBP Equ ivalent of the deal halves in value, and subject to meeting the
               >3 months arrears being less than 7.5% and a zero PDL, the Notes will pay down pro rata.
               PM13 - when the original GBP Equ ivalent of the deal halves in value, and subject to meeting the
               >3 months arrears being less than 7.5% and a zero PDL, the Notes will pay down pro rata.

           For PM14 & PM15, there is no determination event. Class A, Class B and Class C notes are paid down
           sequentially.


           d. “ Interest Payment Date”
           In respect of PM7 - PM15 and FF7 the distribution of interest and principal to the principal paying
           agent is 15 days follo wing the quarter end. (principal determination date).
           The PM10 Class A1 note interest is paid on the 15th day of each month, commencing on 15th
           December, 2005.
           The PM11 Class A1 note interest is paid on the 15th day of each month, commencing on 18th April
           2006.
           The PM12 Class A1 note interest is paid on the 15th day of each month, commencing on 15th August
           2006.
           The PM13 Class A1 note interest is paid on the 15th day of each month, co mmencing on 15th November
           2006.

                                                                                                                      6
                Glossary of Terms
                           The PM14 Class A1 note interest is paid on the 15th day of each month, commencing on 16th April
                           2007.
                           The PM15 Class A1 note interest is paid on the 15th day of each month, commencing on 15th August
                           2007.

                           e. “ Record Date”
                           The date on which registered holders of securities are determined for making distributions on the next
                           interest payment date.

                           f. “ Principal Determination Date”
                           In respect of PM7 - PM 15 and FF7, the last working day of the quarter end when the administrator
                           calculates the principal note repay ment and advises the principal paying agent 5 business days later.


                           (2) PORTFOLIO ASSET MOVEMENTS SECTION – PAGE 2

        Asset Movements

        Mortgages                                                                                                             As at Closing       Last Quarter      This Quarter      Additions this       Repurchases        Current Principal
                                                                                                                                                    Balance        Redemptions and      quarter            this quarter         Outstanding
                                                                                                                                                                     Repayments
        Current Principal Balance (£'000)                                                                                             1,500,162        1,039,490              7,859                122                    0           1,031,753
        Accrued Arrears and Interest Sold to Issuer (£'000)                                                                                  42                0                  0                  0                    0                   0

        Total (£'000)                                                                                                                 1,500,204        1,039,490              7,859                122                    0           1,031,753

        Consumer Loans

        Current Principal Balance (£'000)
        Accrued Arrears and Interest Sold to Issuer (£'000)

        Total (£'000)

        Credit Enhancement                                                                                                                    0                0                                                                              0
        Pre Funding Reserve                                                                                                                   0                0                                                                              0
        Available Redemption Funds                                                                                                            1                0                                                                              0
        Unreplenished Losses on Mortgages                                                                                                     0                0                                                                              0
        Outstanding Note Principal                                                                                                    1,500,205        1,039,490                                                                      1,031,753


        Principal/Revenue Analysis                                                                                                      PDD =          30-Jul-10                                         Principal (£'000)    Revenue (£'000)
        Opening cash balance                                                                                                                                                                                            0                    0
        Total principal cash received this period from assets                                                                                                                                                       7,659
        Quarterly Interest Income                                                                                                                                                                                                         6,919
        Redemption Income                                                                                                                                                                                                                    78
        Investment Income                                                                                                                                                                                                                    43
        Swap receipts                                                                                                                                                                                                                         0
        First Loss Fund Drawings                                                                                                                                                                                                              0
        Drawing on the PFPLC/MTS/PM12 Subordinated Loan for Interest Shortfalls                                                                                                                                                             280
        Initial income for distribution this period                                                                                                                                                                 7,659                 7,320
        Funding of MTL payment holidays                                                                                                                                                                               -17                    17
        Revenue adjustment for payment of Accrued Arrears and Interest Sold at closing                                                                                                                                  0                     0
        Accrual from Revenue for potential Losses                                                                                                                                                                                            46
        Final income for distribution this period                                                                                                                                                                   7,642                 7,383
        Revenue payments made or accrued from Revenue Income:
    1   Accrued Arrears and Interest not Sold to Issuer                                                                                                                                                                                       0
    2   Trustee Fee/Tender Agent Fees/ Costs and Expenses claimed by the Remarketing Agent and the A1 Conditional Purchaser                                                                                                                  -2
    3   Senior Administration Fee to PFPLC and MTS/ Out of pocket expenses/ Substitute Administrators Commitment Fee                                                                                                                       -725
4 (a)   Payments to Swap Counterparty                                                                                                                                                                                                    -1,155
4 (b)   A1, A2b and A2c Swap Currency Interest                                                                                                                                                                                           -1,542
4 (c)   A2a Note Interest                                                                                                                                                                                                                  -190
5 (a)   B1b Swap Currency Interest                                                                                                                                                                                                         -205
5 (b)   B1a Note Interest                                                                                                                                                                                                                   -58
6 (a)   C1b Swap Currency Interest                                                                                                                                                                                                         -215
6 (b)   C1a Note Interest                                                                                                                                                                                                                   -49
    7   Third Party payments for Corporation Tax and VAT                                                                                                                                                                                    -10
    8   PDL Replenishment                                                                                                                                                                                            200                   -200
    9   First Loss Fund Replenishment                                                                                                                                                                                                         0
  10    Termination Fees to Swap Provider                                                                                                                                                                                                     0
  11    Cap/Swap Retention fund                                                                                                                                                                                                               0
  12    Junior Administration Fee to PFPLC and MTS                                                                                                                                                                                         -394
  13    Surplus income to the Issuer                                                                                                                                                                                                     -2,638
        Principal payments made from Principal Income:
        PML Mandatory Further Advances                                                                                                                                                                                  0
        MTL Mandatory Further Advances                                                                                                                                                                                -10
        Discretionary Further Advances                                                                                                                                                                                -95
        A1 Swap Currency repayment                                                                                                                                                                                 -4,859
        A2a Note repayment                                                                                                                                                                                           -864
        A2b Swap Currency repayment                                                                                                                                                                                -1,007
        A2c Swap Currency repayment                                                                                                                                                                                -1,007
        B1a Note repayment                                                                                                                                                                                              0
        B1b Swap Currency repayment                                                                                                                                                                                     0
        C1a Note repayment                                                                                                                                                                                              0
        C1b Swap Currency repayment                                                                                                                                                                                     0
        Total payments to be made this quarter                                                                                                                                                                     -7,842                -7,383
        Total closing cash balance                                                                                                                                                                                      0                     0



        PM12 INVESTOR REPORT QUARTER ENDING JULY 2010




                           a. “ Asset Movement”
                           This section details the scheduled principal fro m monthly payments and redemption and any write offs
                           of mo rtgage balances. The “additions” section relates to new assets purchased by the issuer during the
                           quarter in respect of mandatory and discretionary further advances and where applicable, the execution
                           of the pre funding reserve. For FF7, discretionary further advances are not included in the “additions”
                           as they are not funded by the issuer. This section also reconciles the outstanding assets back to the
                           outstanding notes. For PM7 - PM 15 and FF7, 100% notes were raised against the assets on the closing
                           dates.

                           b. “ Principal cash” - The issuer uses the following to redeem the notes :
                                    Scheduled monthly principal repayments received fro m borro wers representing repayment of
                                    the loans, overpayments, and redemptions received fro m borrowers (as opposed to interest
                                    costs and fees associated with the loans).
                                    Proceeds of realisation of security on default - fro m the sale of the property, fro m related
                                    security : life policies, mortgage indemnity claims.
                                    Repurchase of mortgage loans by the relevant sellers.
                                    Replenish ments to the principal deficiency ledger.
                                    Repayment of the spread trap.
                                    Funding of MTL payment holidays .
                                    Purchased pre closing arrears collected in the period.

                           less

                                                          any discretionary further advances made in the collection period.
                                                          any mandatory further advances made in the collect ion period.
                                                          repayments of any drawings made on the flexib le drawing facility agreement during the
                                                                                                                                                                                                                               7
                                            Glossary of Terms
        collection period.

equals the repayment to note holders.

Please refer to section (5) (e), for an example of the pro rata repay ment of the GBP, Euro and US
Dollar Class A notes.

c. “ Revenue Income” - The issuer meets its funding costs and operating expenses from the following :
        Interest from the borrowers’ monthly pay ments.
        Early pre -payment fees.
        Investment income.
        First loss fund drawings.
        Funding of MTL payment holidays .
        Swap receipts.
        Proceeds from the realisation of security in default relat ing to missed interest and fees.
        Salvage receipts.
        Drawings made on the subordinated loan to establish the shortfall fund where the issuer has
        failed the min imu m mortgage rate.
        Scheduled releases from the margin reserve fund.

equals the revenue ledger balance on the interest payment date.

Please refer to section (5) (f) for more detail with respect to the cash management procedures for the
MTL pay ment holidays.

For transparency on the investor reports, the revenue ledger balance has been broken down into the
following categories :

        Quarterly interest income : this relates to the quarterly interest generated from the borrowers ’
        monthly payments.

        Redemption income : this relates to early prepayment fees at the redemption of the mortgage
        plus if applicable, any missed interest and fees.

        Investment income : this relates to the proceeds from the placement of cash during the interest
        period with the appropriate rating, deposited to the issuer’s transaction account and credited to
        the revenue ledger.

        Swap receipts : this relates to swap receipts from the swap counterparties (JP Morgan & ABN
        Amro ) where the quarterly GBP Libor exceeds the swap rate in the underlying swap
        confirmat ions in respect of the fixed rate loans in the portfolio.

        Scheduled releases from the margin reserve fund drawings : this relates to predetermined
        scheduled releases from the marg in reserve fund ledger to the revenue ledger to run through
        PM14 & PM15’s priority of payments on each interest payment date. For PM14 the marg in
        reserve fund (£9,488,800) has been funded on the closing date by a drawing on the
        PM14/PFPLC/MTS subordinated loan and for PM15, the marg in reserve fund (£6,201,234)
        has been funded on the closing date and the pre funding reserve execution date, by drawings
        on the PM15/PFPLC/MTS subordinated loan.

        First loss fund drawings : to the extent that the issuer has insufficient revenue to meet all of
        its senior liabilit ies on each interest payment date, a drawing is made on the first loss fund and
        credited to the revenue ledger to run through the priority of pay ments.

        Drawings on the subordinated loan for interest shortfalls : this relates to the funds drawn on
        the subordinated loan as a result of the failure of the minimu m mortgage rate test. The
        weighted average interest rate on each portfolio (along with investment income, redemption
        fees, and scheduled releases from the margin reserve fund in respect of PM 14 and PM15)
        must exceed GBP Libor + 1.6% (except FF7 wh ich must exceed Libor + 1.8%). To the extent
        that each issuer does not achieve this threshold, a cash drawing is made on the subordinated
        loan to make up for the resultant shortfall. In the underly ing documentation, the drawing made
        on the subordinated loan is credited to the shortfall ledger, then on each interest payment date,
        is credited to the revenue ledger, however for the purposes of the investor reports , the drawing
        on the subordinated loan is shown as a credit to the revenue ledger on each interest payment
        date to then run through the priority of pay ments.
                                                                                                         8
    Glossary of Terms
d. “ Accrued arrears sold to the issuer”
For PM7 – PM 14, the arrears and accrued interest on mortgages less than or equal to one month at the
closing date were not sold to the issuer. For PM15, none of the accrued interest and arrears were sold to
the issuer. Cash received on those mortgages pay off the accrued interest to the relevant sellers at any
time during an interest period. Th is is detailed in part 1 of the section titled “revenue payments made or
accrued fro m revenue income” on page 2 of the investor report. This cash is not available to meet the
issuer’s funding costs and operating expenses.

e. “Accrual from Revenue for potential Losses”
For PM7 – PM15, an accrual is made fro m the excess spread that otherwise is payable at the bottom of
the priority of payments. The accrual relates to potential losses on receiver of rent cases with LTV’s
greater than 100%, where the property is to be sold. On each principal determination date, the
administrator calculates the excess spread, and retains from the excess spread, the value of the potential
losses in the transaction account. When the property is sold and the loss is crystallised, the accrual is
released to the Principal Deficiency Ledger in order to repay the notes on the interest payment date.

f. “Pre closing arrears”
In respect of PM7 – PM14, arrears and accrued interest on assets greater than one month’s arrears were
purchased by these issuers on the closing dates. Any cash received on those assets in a period are firstly
applied to the pre closing arrears. The effect of the issuer purchasing the pre closing arrears is diverting
the revenue derived from pre closing arrears accounts from revenue to principal, forming part of the
available redemption funds to redeem notes on an interest payment date.

For FF7, the pre closing arrears were purchased by the issuer by drawing on the PFPLC/MTS
subordinated loan. Any cash received in respect of the pre closing arrears forms part of the revenue
ledger balance to meet FF7’s funding costs and operating expenses. A diversion is not made to the
principal ledger in respect of FF7’s pre closing arrears.

g. “Purpose of the subordinated loans for PM7 – PM15 and FF7”
Establishing the first loss fund, funding discretionary and mandatory further advances in situations
where the issuer has insufficient principal cash during an interest period (with the exception of FF7
which funds its discretionary further advances from the subordinated loan as they are not funded via
principal cash) and establishing the shortfall fund where the minimu m mortgage rate hasn't been
achieved. In addition, in respect of PM7 - PM15 and FF7 to cancel out a debit balance on the principal
deficiency ledger and to bring the first loss fund to the required level and the funding of swap
termination fees to the extent revenue cash is insufficient during an interest period.

h. “Revenue payments made or accrued from revenue income”

These consist of the following funding and operating costs and expenses on each interest payment date,
made in GBP sterling.

    Trustee fee / Tender agent fees / Costs and expenses claimed by the Remarketing Agent and the
    A1 Conditional Purchaser
    These relate to trustee and tender agent’s fees and any costs and expenses claimed by the principal
    paying agent, remarketing agent or the conditional purchaser under the PM10 – PM15 A1 note
    conditional purchase agreements and the PM10 – PM15 remarketing agreements .

    Senior Administration Fee to PFPLC and MTS / Out of pocket expenses / Substitute
    Administrator Commitment Fee
    For PM9 – PM13, FF7 & PM 15, the “senior” admin istration fees are calculated at 0.15% per
    annum, based on the PML and the MTL mortgage asset balance on the preceding principal
    determination date. For PM7 and PM 8, and PM 14, the “senior” fees are calcu lated at 0.10% and
    0.05% per annu m, respectively, based on the PML and the MTL mo rtgage asset balance on the
    preceding principal determination date.
    The substitute admin istrator’s commit ment fees are calculated at 0.004% per annum, based on the
    PML and the MTL o rig inated asset balance on the preceding principal determination date.

    Payments to Swap Counterparties
    These relate to quarterly swap payments paid to the swap counterparties (JP Morgan and ABN
    Amro ) where the quarterly GBP Libor is less than the swap rate in the underlying swap
    confirmat ions in respect of the fixed rate loans in the portfolio.

    Payment to Flexible Drawing Facility Provider Commitment Fee
                                                                                                           9
     Glossary of Terms
For PM 9, PM10, PM 13, PM 14 & FF7, the co mmit ment fees to the flexible drawing facility
provider are calculated at 0.12% of the flexib le drawing facility at each interest payment date,
referenced to the value of the flexib le drawing facility.

Note Interest / Swap Currency Interest
These relate to the note interest and swap currency interest payable to each class of note holders on
each interest payment date, where all of the payments are referenced to (a) three month GBP Libor
plus the agreed note margins and the currency swap margins and (b) the GBP equivalent note
value at the previous quarter end. All payments made to the GBP note holders and the currency
swap provider are made in GBP sterling on each interest payment date. For examp le, the A2c
currency swap interest is calculated by multip lying the A2c GBP equivalent note balance at the
previous interest payment date by the current interest rate (three month GBP Libor + margin),
dividing this by 365, then mu ltip lying by the number of days in the current interest period.

For PM 12, the A2c currency swap interest on the August 2010 interest payment date equalled:

£109,038,324.02 (A2c GBP equivalent note balance) x 0.82445% (GBP Libor + currency swap
margin) / 365 x 91 (nu mber of days in the interest period) = £224,125.89 pay ment to PM12’s
currency swap provider.

Third Party payments for Corporation Tax and VAT
An accrual is made for VAT and corporation tax pay ments in the quarter. In addit ion, an accrual in
respect of third party items such as audit and directors fees are made.

Principal Deficiency Ledger Replenishment
To the extent that a principal balance remains outstanding on an asset following th e completion of
the enforcement procedures, such balances are booked to the issuer’s principal deficiency ledger.
Provided there is excess revenue available on an interest payment date after making payment s in
the order of priority, the admin istrator will cancel out such balance(s) to the principal deficiency
ledger by diverting excess revenue to the principal or by drawing on the subordinated loan, to form
part of the available redemption funds to redeem the notes on the interest payment date. In
situations where a drawing has been made to replenish the principal deficiency ledger, this is
credited directly to the principal deficiency ledger and the principal ledger and does not flow
through the priority of pay ments.

First Loss Fund Replenishment
To the extent that the issuer has insufficient revenue to meet all of its senior liab ilities on each
interest payment date, a drawing is made on the first loss fund and credited to the revenue ledger to
run through the priority of payments. As the first loss fund has to be at the required level in order
for the issuer to grant further advances in the next quarter, the first loss fund is replenished back to
the required level by drawing on the PFPCL/MTS subordinated loan, or capturing through excess
spread in the priority of payments. In situations where a drawing has been made in the first loss
fund to meet the issuer’s senior liabilities, and is rep lenished to its required level by drawing on the
subordinated loan, this is credited directly to the first loss fund ledger and does not flo w through
the priority of pay ments.

Junior Administration Fee to PFPLC and MTS
For PM 9 – PM13, FF7 & PM15 the “junior” ad ministration fee are calculated at 0.15% per annum,
based on the PML and the MTL mo rtgage asset balance on the preceding principal determination
date. For PM7 and PM8, and PM14, the “junior” fee is calculated at 0.20% and 0.25% per annum
respectively, based on the PML and the MTL mortgage asset balance on the preceding principal
determination date.

Surplus Income to the Issuer
To the extent that an excess balance remains on the revenue ledger after making all pay ments in
the order of priority on an interest payment date, the issuer is entitled to receive this balance to pay
or provide for payment of any dividends or other distributions to be made by the issuer, such as
interest on the fee letter, pay ment of PFPLC/MTS subordinated loan interest, repayment of the
subordinated loan and management charges to PFPLC. For the purposes of the investor reports,
this is shown as a combined number.




                                                                                                      10
Glossary of Terms
                             Opening cash balance                                                                                                      0                   0
                             Total principal cash received this period from assets                                                                 7,659
                             Quarterly Interest Income                                                                                                               6,919
                             Redemption Income                                                                                                                          78
                             Investment Income                                                                                                                          43
                             Swap receipts                                                                                                                               0
                             First Loss Fund Drawings                                                                                                                    0
                             Drawing on the PFPLC/MTS/PM12 Subordinated Loan for Interest Shortfalls                                                                   280
                             Initial income for distribution this period                                                                           7,659             7,320
                             Funding of MTL payment holidays                                                                                         -17                17
                             Revenue adjustment for payment of Accrued Arrears and Interest Sold at closing                                            0                 0
                             Accrual from Revenue for potential Losses                                                                                                  46
                             Final income for distribution this period                                                                             7,642             7,383
                             Revenue payments made or accrued from Revenue Income:
                        1    Accrued Arrears and Interest not Sold to Issuer                                                                                              0
                        2    Trustee Fee/Tender Agent Fees/ Costs and Expenses claimed by the Remarketing Agent and the A1 Conditional Purchaser                         -2
                        3    Senior Administration Fee to PFPLC and MTS/ Out of pocket expenses/ Substitute Administrators Commitment Fee                              -725
                    4 (a)    Payments to Swap Counterparty                                                                                                           -1,155
                    4 (b)    A1, A2b and A2c Swap Currency Interest                                                                                                  -1,542
                    4 (c)    A2a Note Interest                                                                                                                         -190
                    5 (a)    B1b Swap Currency Interest                                                                                                                -205
                    5 (b)    B1a Note Interest                                                                                                                          -58
                    6 (a)    C1b Swap Currency Interest                                                                                                                -215
                    6 (b)    C1a Note Interest                                                                                                                          -49
                        7    Third Party payments for Corporation Tax and VAT                                                                                           -10
                        8    PDL Replenishment                                                                                                      200                -200
                        9    First Loss Fund Replenishment                                                                                                                0
                      10     Termination Fees to Swap Provider                                                                                                            0
                      11     Cap/Swap Retention fund                                                                                                                      0
                      12     Junior Administration Fee to PFPLC and MTS                                                                                                -394
                      13     Surplus income to the Issuer                                                                                                            -2,638




                   (3) AVAILABLE CREDIT E NHA NCEMENT SECTION – PAGE 3

Available Credit Enhancement

First Loss Fund Analysis
First Loss Fund at Closing                                                                                                                                                                28,504
Last Quarter closing First Loss Fund balance                                                                                                                                              28,504
Drawings this quarter to fund                                                                                                                                                                  0
A Note Interest / Currency Swap Interest                                                                                                                                                       0
B Note Interest / Currency Swap Interest                                                                                                                                                       0
C Note Interest / Currency Swap Interest                                                                                                                                                       0
PDL Replenishment                                                                                                                                                                              0
Replenishments from excess Revenue cash                                                                                                                                                        0
Replenishments from drawings on the PM12/PFPLC/MTS Subordinated Loan                                                                                                                           0
Closing First Loss Fund Balance                                                                                                                                                           28,504

Flexile Drawing Facilty (Not Applicable to PM12)
Facility at Closing                                                                                                                                                                            0
Drawings used to fund Mandatory Further Advances during the period                                                                                                                             0
Closing Flexible Drawing Facility Balance                                                                                                                                                      0


Spread Trap
Requirement                                                                                                                                                                                  N/A
Build up - prior periods                                                                                                                                                                     N/A
Build up - this period                                                                                                                                                                       N/A
Requirement Outstanding                                                                                                                                                                      N/A

Principal Deficiency Ledger (PDL)
Opening PDL Balance                                                                                                                                                                            0
Losses this quarter                                                                                                                                                                          200
Total PDL balance                                                                                                                                                                            200
PDL replenishment from Revenue income                                                                                                                                                       -200
Closing PDL Balance                                                                                                                                                                            0
Accrual from Revenue for potential Losses                                                                                                                                                      0


Over Collateralisation

Current Principal Balance Outstanding and Accrued Arrears (£'000)                                                                                                                       1,031,753
Outstanding Note Principal (£'000)                                                                                                                                                      1,031,753


Mandatory and Discretionary Further Advances (FA's)                                                                                                         DFA's    MFA's (PML)           Total
Total FA's permitted                                                                                                                                       240,033
FA's made to last quarter                                                                                                                                   47,293         6,277          53,570
FA's made this quarter                                                                                                                                          95             0              95
Total FA's made to date                                                                                                                                     47,388         6,277          53,665
Remaining permitted FA's                                                                                                                                   186,368


Cash Flow Interest Coverage
Cover Ratio for Class A Notes (at last Interest Payment Date)                                                                                                                               3.18    x
Cover Ratio for Class A Notes (cumulative)                                                                                                                                                  1.49    x
Cover Ratio for Class B Notes (at last Interest Payment Date)                                                                                                                              14.33    x
Cover Ratio for Class B Notes (cumulative)                                                                                                                                                  4.77    x
Cover Ratio for Class C Notes (at last Interest Payment Date)                                                                                                                              13.28    x
Cover Ratio for Class C Notes (cumulative)                                                                                                                                                  4.43    x




PM12 INVESTOR REPORT QUARTER ENDING JULY 2010




                   a. “ First Loss Fund”
                   A % of the closing date’s GBP equivalent note balance agreed with the rating agency / agencies on the
                   closing date is deposited as cash to the issuer's transaction bank account from the PFPLC subordinated
                   loan, or in respect of PM9, the Mortgage Trust Services PLC and the Paragon Loan Finance (No.2)
                   PLC subordinated loan, or in respect of PM10-PM 15 and FF7, the Mortgage Trust Services PLC and
                   the Paragon Finance PLC subordinated loans.

                   To the extent that the issuer's revenue resources are insufficient on an interest payment date to pay its
                   senior liabilities, a drawing is made on the first loss fund to enable the issuer to make such payments.
                   For PM 7- PM 15 and FF7, drawings on the first loss fund are allowed to bring the PDL to nil.

                   To the extent that the issuer has sufficient revenue available in the next interest period, the issuer will
                   use the surplus revenue to bring the first loss fund back to its required amount, or draw on the
                   subordinated loan to bring it back to the required level.

                   Please refer to section (5) (c) with respect to the first loss fund arrears triggers and the first loss fund
                   liquid ity ledger triggers.

                   b. “Flexible Drawing Facility”
                   Cred it Enhancement is also provided by the flexib le drawing facilit ies on PM8, PM9, PM 10 , PM13,
                   PM14 and FF7. To the extent that there is an insufficient amount of principal cash to fund the MTL
                   redraws (the MTL mortgage conditions allows a customer to overpay on his mortgage and then request
                   to draw it back down again) or the issuers can’t draw on their respective subordinated loans, a request
                   is made to Barclays Bank PLC as the flexib le drawing facility provider to fund the redraws in order to
                   mitigate any set off risk with the borrowers. Drawings made in the redraw facility are repaid to
                                                                                                                                                                                   11
                                    Glossary of Terms
Barclays Bank PLC via the available redempt ion funds calculation on each principal determination
date.

For PM 9, PM10, PM 13, PM 14 and FF7, the flexible d rawing facilities amort ise in line with the
amort isation of the flexib le mo rtgages, subject to a minimu m floor % imposed by the rating agencies.

PM11, PM12 & PM 15 have no flexib le drawing facilities.

c. “ Spread Trap”
The spread trap is calculated as a % of the current balance agreed with the rating agency / agencies on
the closing date.

To the extent that there is excess revenue after making payments in the order of priority on an interest
payment date, the spread trap is built up from excess revenue and diverted to principal to form part of
the available redemption funds in redeeming the notes in the next succeeding period in respect of a
non-substituting transaction. For all of the Paragon Mortgages transactions, 100% notes were issued
against the assets.

d. “ Principal Deficiency Ledger”
To the extent that a principal balance remains outstanding on an asset after completion of the
enforcement procedures, such balances are booked to the issuer's principal deficiency ledger. Provided
there is excess revenue available on an interest payment date after making payments in the order of
priority, the administrator will cancel out such balance(s) to the principal deficiency ledger by (a)
diverting excess revenue to principal or (b) drawing on the subordinated loan, to form part of the
available redemption funds to redeem the notes on the next succeeding interest payment date. In
situations where a drawing has been made to replenish the principal deficiency ledger, this is credited
directly to the principal deficiency ledger and the principal ledger and does not flo w through the
priority of payments.

e. “Margin Reserve Fund”
For PM 14 & PM 15 a marg in reserve fund equal to £9,488,800 & £6,201,234 respectively has been
incorporated into these transactions to supplement their margins due to the level of d iscounted rate
mortgages within each transaction. On each interest payment date, predetermined scheduled releases
are made fro m the margin reserve fund ledger to the revenue ledger (between the September 2007
interest payment date to the September 2008 interest payment date for PM14 and between the
December 2007 interest payment date to the September 2008 interest payment date for PM15) to run
through PM14 & PM 15’s priority of pay ments. For PM14, the £9,488,800 margin reserve fund has
been funded on the closing date by a drawing on the PM14/PFPLC/MTS subordinated loan. For
PM15, the £6,201,234 marg in reserve fund has been funded on the closing date and the pre funding
reserve execution date, by drawings on the PM15/PFPLC/MTS subordinated Loan.

f. “ Over collateralisation”
The result of deducting the value of the assets less the value of the notes equals the over
collateralisation. For all of the Paragon Mortgages transactions, 100% notes were issued against the
assets.

g. “ Mandatory Further Advances”
Financed out of principal cash received during an interest period, a further advance made to borrowers
to fund deferred interest or the release of an advance retained as part of the original mortgage after
complet ing certain works to the property. In addition, drawings under the MTL flexib le loan product
are also funded out of available principal cash and are defined as mandatory further advances.
Mandatory further advances are deducted from the available redemption funds to arrive at the note
repayment to the note holders.

h. “ Discretionary Further Advance”
For PM7 – PM15, discretionary further advances, financed out of principal cash provided that the
principal deficiency ledger is nil at the previous interest payment date and certain arrears tests are met.
Additional tests for PM 7 - PM 15 include a 1% LTV movement test and that the first loss funds must be
at the required levels at the previous interest payment date. Discretionary further advances form part of
the available redempt ion funds calculation in determin ing the note repayment to the note holders.

FF7 discretionary further advances are not funded out of principal cash but from the FF7/PFPLC/MTS
subordinated loan and therefore do not form part of the available redemption funds calculation in
determining the note repayment to the note holders.

                                                                                                        12
     Glossary of Terms
                          i. “ Cash flow coverage numbers”
                          Cash flo w coverage ratios are calculated as the ratio of revenue cash received during the quarter to note
                          interest payments, in each case net of payments due in priority to the respective class of note. If
                          revenue cash is insufficient to pay any interest on a class of note then a zero will appear in the report.

                          (4) COLLATERAL LEVEL DATA SECTION – PA GE 4

Collateral Level Data                                                                                                                                                                                       30-Jul-10

Original Weighted Average Yield                                                                                                                                                                              5.21%
Original Weighted Average Note Coupon and Currency Swap Rate                                                                                                                                                 4.85%
Original Spread                                                                                                                                                                                              0.35%
Current Weighted Average Yield                                                                                                                                                                               2.57%
Current Weighted Average Note Coupon and Currency Swap Rate                                                                                                                                                  0.87%
Current Spread                                                                                                                                                                                               1.70%
Total Income as a % of the Total Assets                                                                                                                                                                      0.71%
Stated Maturity - Class A Notes                                                                                                                                                                              Nov-38
Stated Maturity - Class B Notes                                                                                                                                                                              Nov-38
Stated Maturity - Class C Notes                                                                                                                                                                              Nov-38
Original Weighted Average Maturity                                                                                                                                                                            21.06          years
Current Weighted Average Maturity                                                                                                                                                                             17.13          years
Quarterly Prepayment Rate                                                                                                                                                                                    0.76%
Life Time Prepayment Rate                                                                                                                                                                                    9.77%

Delinquency Status                                                                                                                                                                          No.            £'000 Value
Enforcements in Progress                                                                                                                                                                     1                 787
Appointment of a Receiver of Rent                                                                                                                                                           149               25,086
Enforcements Completed                                                                                                                                                                       0                   0
Aggregate Principal Balance of Repurchased Loans                                                                                                                                                                 0
Aggregate Balance of Substituted Loans                                                                                                                                                                          n/a
Principal Losses
Agg Loan Principal Losses (during related Collection Period)                                                                                                                                                   200
Cumulative Principal Losses (since closing date)                                                                                                                                                              1,834
Possession Properties Sold
Properties Sold by Mortgagee - Outstanding Principal Balance                                                                                                                                0                   0
Average Number of months in Arrears @ Redemption date                                                                                                                                                          0.00
Average months between Possession & Redemption                                                                                                                                                                 0.00
Receiver of Rent Properties Sold
Properties Sold by Mortgagee - Outstanding Principal Balance                                                                                                                                7                  930
Average Number of months in Arrears @ Sale date                                                                                                                                                                5.94



FOR ADDITIONAL INFORMATION ON THE UNDERLYING ASSETS, PLEASE REFER TO THE "POOL TABLES" AND "SUMMARY" SECTIONS POSTED ON THE PARAGON WEBSITE          http://www.paragon-group.co.uk

Delinquency Summary (Excluding Receiver of Rent and Possession Cases)                                                                                                        No.            %       £'000 Principal             %
Performing                                                                                                                                                                         7,467     99.56%       1,002,041            99.54%
>1<=2 Months                                                                                                                                                                          28      0.37%           3,886             0.39%
>2<=3 Months                                                                                                                                                                           2      0.03%             333             0.03%
>3<=4 Months                                                                                                                                                                           1      0.01%             135             0.01%
>4<=5 Months                                                                                                                                                                           0      0.00%               0             0.00%
>5<=6 Months                                                                                                                                                                           1      0.01%              70             0.01%
>6<=12 Months                                                                                                                                                                          1      0.01%             202             0.02%
>12 Months                                                                                                                                                                             0      0.00%               0             0.00%

Total                                                                                                                                                                              7,500     100.00%           1,006,667 100.00%

Delinquency Summary (For Receiver of Rent Cases)                                                                                                                             No.            %       £'000 Principal             %
Performing                                                                                                                                                                             91    61.07%          15,371            61.27%
>1<=2 Months                                                                                                                                                                            1     0.67%             169             0.67%
>2<=3 Months                                                                                                                                                                           10     6.71%           1,365             5.44%
>3<=4 Months                                                                                                                                                                            1     0.67%             107             0.43%
>4<=5 Months                                                                                                                                                                            1     0.67%              94             0.37%
>5<=6 Months                                                                                                                                                                            3     2.01%             492             1.96%
>6<=12 Months                                                                                                                                                                          17    11.41%           2,475             9.87%
>12 Months                                                                                                                                                                             25    16.78%           5,013            19.98%

Total                                                                                                                                                                                 149    100.00%              25,086 100.00%

Delinquency Summary (For Possession Cases)                                                                                                                                   No.            %             £'000 Principal       %
Performing                                                                                                                                                                              0         0.00%                 0       0.00%
>1<=2 Months                                                                                                                                                                            0         0.00%                 0       0.00%
>2<=3 Months                                                                                                                                                                            0         0.00%                 0       0.00%
>3<=4 Months                                                                                                                                                                            0         0.00%                 0       0.00%
>4<=5 Months                                                                                                                                                                            0         0.00%                 0       0.00%
>5<=6 Months                                                                                                                                                                            0         0.00%                 0       0.00%
>6<=12 Months                                                                                                                                                                           0         0.00%                 0       0.00%
>12 Months                                                                                                                                                                              0         0.00%                 0       0.00%

Total                                                                                                                                                                                   0         0.00%                  0      0.00%

Total Assets                                                                                                                                                                       7,649                       1,031,753


Contact Name/Address                                                                            Tel.           E-mail

John Harvey, St. Catherines Court, Herbert Road, Solihull, West Midlands, B91 3QE       +44 (0) 121 712 3894   john.harvey@paragon-group.co.uk
Andrew Kitching, St. Catherines Court, Herbert Road, Solihull, West Midlands, B91 3QE   +44 (0) 121 712 3896   andrew.kitching@paragon-group.co.uk
Jimmy Giles, St. Catherines Court, Herbert Road, Solihull, West Midlands, B91 3QE       +44 (0) 121 712 2315   jimmy.giles@paragon-group.co.uk

PM12 INVESTOR REPORT QUARTER ENDING JULY 2010




                          a. “ Original Weighted Average Yield”
                          The weighted average interest rate charged on the mortgages at the closing date of the transaction,
                          weighted by reference to the customer’s principal balance.

                          b. “ Original Weighted Note Coupon”
                          The weighted average note interest rate and currency swap interest rate, (equal to the GBP funding
                          margin) charged to the issuer at the closing date of the transaction, calculated on a weighted average
                          basis by reference to the GBP equivalent note value on the closing date. FF7 is a sterling deal only
                          transaction.

                          c. “ Original Spread”
                          The result of deducting the weighted average interest rate on the assets from the weighted average GBP
                          funding margin. In PM11 – PM15, there is negative spread caused by the high level of fixed rate loans
                          in the transactions and the increase in GBP Libor. The resultant increase in Libor and the swap receipts
                          fro m the swap counterparties are not included within the weighted average interest rates charged on the
                          assets.

                          d. “ Current Weighted Average Yield”
                          The weighted average interest rate charged on the mortgages at the relevant quarter end, weighted by
                          reference to the customer’s principal balance.

                          e. “ C urrent Weighted Note Coupon”
                          The weighted average note interest rate and currency swap interest rate, equal to GBP funding marg in
                          charged to the issuer at the start of the quarter, calculated on a weighted average basis by reference to
                          the GBP equivalent note value at the preceding interest payment date. FF7 is a sterling deal only
                          transaction.

                          f. “ C urrent Spread”
                          The result of deducting the weighted average interest rate on the assets from the weighted average GBP
                          funding margin. In PM 11 – PM15 there is negative spread caused by the high level of fixed rate loans
                          in the transactions and the increase in GBP Libor. The resultant increase in Libor and the swap receipts
                          fro m the swap counterparties are not included within the weighted average interest rates charged on the
                                                                                                                                                                                                                                        13
                                          Glossary of Terms
assets.

g. “ Total income as a % of the assets”
This measures the total income generated in the period as a percentage of the asset balance at the
previous quarter end.

h. “ Stated Maturity”
The interest payment date following the assets latest maturity.

i. “ Originated Weighted Average Maturity”
The weighted average remaining term of the assets at the closing date, calculated by reference to the
remain ing term, and weighted against the customer’s principal balance.

j. “ Current Weighted Average Maturity”
The weighted average remain ing term of the assets at the relevant quarter end, calculated by reference
to the remaining term and weighted against the customer’s principal balance.

k(i). “ Quarterly Prepayment Rate”
The quarterly prepayment rate calculated by analysing the redemptions and scheduled repayments and
then dividing the result by the closing principal balance of the assets at the previous quarter end.

(ii). “ Lifetime Prepayment Rate”
The lifet ime weighted average prepayment since the closing date using the following formula and
example:

1 - ( (1- a1) x (1 - a2) x (1 - a3) .......(1- an)) ^ (4 / n)

Where:
a1 = redemption rate for quarter 1
a2 = redemption rate for quarter 2
a3 = redemption rate for quarter 3
an = redemption rate for quarter current

n = no of quarters expired including current quarter

^ = to the power

For examp le, in the first three quarterly redemption rates were seen in a deal: 3.67%, 5.77% and 4.51%

The life t ime redemption rate is calcu lated as:

1 - ((1 - 3.67%) x (1 - 5.77%) x (1 - 4.51%)) ^ 4/ 3

1 – ((0.9633) x (0.9423) x (0.9549)) ^ 4/3

1 – 0.8668 ^ 1.333

1.1736

17.36%

“ Delinquency Status”
l(i). " E nforcements i n progress" : assets where the administrator has commenced or has issued
proceedings against the borrowers in breach of their mortgage conditions at the relevant quarter end.

l(ii). “ Appointment of a receiver of rent” : equals the number and value o f mortgages where the
administrator has appointed a receiver of rent in respect of investment home loans at the relevant
quarter end.




l(iii). " Enforcements Completed" : assets which have been repossessed awaiting the sale of the assets
at the relevant quarter end.
                                                                                                     14
     Glossary of Terms
   Delinquency Status                                                                    No.     £'000 Value
   Enforcements in Progress                                                               1          787
   Appointment of a Receiver of Rent                                                     149        25,086
   Enforcements Completed                                                                 0           0


m. " Aggregate Principal Balance of Repurchased Loans" loans repurchased by the relevant sellers
fro m the issuer caused by a breach of the security warranties at the relevant quarter end.

n. “ Aggregate Balance of Substituted Loans”
Assets purchased by the issuer from the use of the pre funding reserve in respect of PM7, PM8, PM13,
PM14 and PM 15.

o. “Principal Losses”
This relates to any losses made on the disposal of a property follo wing the relevant admin istrator’s
enforcement procedures at the relevant quarter end. In addition, the cumu lative losses are also reported.

p. “Possession / Receiver of Rent Properties Sold”
Properties sold by the relevant admin istrator are split between:
         Possession sales
         Receiver of rent sales

   Possession Properties Sold
   Properties Sold by Mortgagee - Outstanding Principal Balance                          0           0
   Average Number of months in Arrears @ Redemption date                                            0.00
   Average months between Possession & Redemption                                                   0.00
   Receiver of Rent Properties Sold
   Properties Sold by Mortgagee - Outstanding Principal Balance                          7          930
   Average Number of months in Arrears @ Sale date                                                  5.94



           Possession/Receiver of Rent properties sold by the admin istrator.
           The average number of months in arrears at the sale date relates to the number of missed
           payments at the property sale date.
           The number of months between the possession to sale measures the time period involved in
           disposing of the property.


q. “Delinquency summary"

"arrears" = missed payments

Performing - assets that are less that or equal to one month in arrears (i.e. missed payments).
>1<= 2 months – mortgages that are greater than one in arrears, less than or equal to two         months
arrears.
>2 <= 3 months – assets that are greater than two months arrears, less than or equal to three      months
arrears.
>3 <= 4 months – assets that are greater than three months arrears, less than or equal to four    months
arrears.
>4 <=5 months – assets that are greater than four months arrears, less than or equal to five      months
arrears.
>5 <=6 months – assets that are greater than five months arrears, less than or equal to six       months
arrears.
>6 <=12 months – assets that are greater than six months arrears, less than or equal to twelve    months
arrears.
>12 months - assets that are greater than twelve months in arrears.

The arrears bandings are calculated on payments expected, minus payments received, divided by the
monthly payments to put the loan into the relevant arrears band.

Example:

           Payments expected : £600
           Payments received : NIL
           Monthly payment : £100
           Arrears Band : 6 months

Fro m here, the arrears band is then linked into the customer’s outstanding principal balance.


                                                                                                           15
     Glossary of Terms
   Delinquency Summary (Excluding Receiver of Rent and Possession Cases)             %       £'000 Principal        %
   Performing                                                                         99.56%       1,002,041       99.54%
   >1<=2 Months                                                                        0.37%           3,886        0.39%
   >2<=3 Months                                                                        0.03%             333        0.03%
   >3<=4 Months                                                                        0.01%             135        0.01%
   >4<=5 Months                                                                        0.00%               0        0.00%
   >5<=6 Months                                                                        0.01%              70        0.01%
   >6<=12 Months                                                                       0.01%             202        0.02%
   >12 Months                                                                          0.00%               0        0.00%

   Total                                                                              100.00%         1,006,667 100.00%

   Delinquency Summary (For Receiver of Rent Cases)                                  %       £'000 Principal        %
   Performing                                                                         61.07%          15,371       61.27%
   >1<=2 Months                                                                        0.67%             169        0.67%
   >2<=3 Months                                                                        6.71%           1,365        5.44%
   >3<=4 Months                                                                        0.67%             107        0.43%
   >4<=5 Months                                                                        0.67%              94        0.37%
   >5<=6 Months                                                                        2.01%             492        1.96%
   >6<=12 Months                                                                      11.41%           2,475        9.87%
   >12 Months                                                                         16.78%           5,013       19.98%

   Total                                                                              100.00%            25,086 100.00%

   Delinquency Summary (For Possession Cases)                                        %           £'000 Principal   %
   Performing                                                                            0.00%                 0   0.00%
   >1<=2 Months                                                                          0.00%                 0   0.00%
   >2<=3 Months                                                                          0.00%                 0   0.00%
   >3<=4 Months                                                                          0.00%                 0   0.00%
   >4<=5 Months                                                                          0.00%                 0   0.00%
   >5<=6 Months                                                                          0.00%                 0   0.00%
   >6<=12 Months                                                                         0.00%                 0   0.00%
   >12 Months                                                                            0.00%                 0   0.00%

   Total                                                                                 0.00%                0    0.00%

   Total Assets                                                                                       1,031,753



The delinquency summaries are split into the following categories:

            Non receiver of rent cases
            Receiver of rent cases
            Possession cases

A receiver of rent is appointed on investment home loan cases usually when the customer is > 2 months
in arrears. Receiver of rent is the equivalent of a possession case on an owner occupied mortgage. The
full rental stream fro m the property is diverted to the receiver, who in turn, passes the rental stream
onto the administrator or if the property is vacant, the receiver can sell the property. With respect to the
future sales of the properties, each case is assessed on its individual merits. The receiver of rent p rocess
allo ws for a broad range of strategies to be considered for the resolution of any case and allows for
these strategies to develop over time as market conditions change.

In the situation where the customer has demonstrated to the administrator that he is in a position to
resume full control of the portfolio, certain receiver of rent properties may be handed back to the
customer.




(5) STR UCTURAL FEATURE S


                                                                                                                      16
     Glossary of Terms
a. “First Loss Fund arrears triggers”
The first loss fund credit enhancement levels are dependent on the asset performance during the life of
the transaction. To the extent that the balance of mortgages greater than two months arrears equals 3%
of the total mo rtgage balance on a principal determination date, the first loss fund increases to:

    PM7, fro m 2.20% to 2.90% of the GBP equivalent closing note balance.
    PM8, fro m 1.90% to 2.50% of the GBP equivalent closing note balance.
    PM9, fro m 1.76% to 2.26% of the GBP equivalent closing note balance.
    PM10, fro m 1.86% to 2.36% of the GBP equivalent closing note balance.
    PM11-PM 15, fro m 1.90% to 2.40% of the GBP equivalent closing note balance.

Should the arrears hit the 3% level in one quarter and then improve in the next quarter falling belo w the
3% trigger, the credit enhancement remains at the higher level, through the capture of excess spread or
drawing on the subordinated loan.

b. “Principal cash used to pay Class A interest / currency swap interest on a n interest payment date.”
To the extent that the revenue ledger balance is insufficient to meet the SPV’s senior liabilit ies on an
interest payment date (after fully utilising the first loss fund), principal cash can be used to satisfy the
senior liabilit ies. An entry is made to the principal deficiency ledger, equal to the principal cash used to
satisfy the senior liabilities.

c. “Liquidity ledger trigger event”
PM9 - PM15 benefits fro m a liquid ity ledger within the first loss fund. Upon a trigger b reach, where
the >3 months arrears loans hits 7.5% of the portfolio, a liquid ity ledger will be established in the first
loss fund. The liquid ity ledger will be equal to 1.6% of the then current outstanding balance of the
notes and it will be established by trapping available excess spread or, if this is not availab le, by
trapping principal through the available redemption funds. The first loss fund is available to cover
credit losses on the principal deficiency ledger and has to be maintained at least at a minimu m floor of
1% of the principal balance of the notes at the closing date.
The amount by which the balance of the first loss fund exceeds the liquidity a mount (1.6% of the
current note balance) is available to pay interest and senior cost obligations of the issuer and to make
up any principal losses on the principal deficiency ledger should there be insufficient spread on the
assets to meet these obligations. Once this amount has been fully drawn on and used, the liquidity
reserve can only be used to cover interest/swap currency interest on the notes and subject to the
following conditions:
   I. The liquid ity reserve can only be used to cover Class B interest if the sum of such payments to
      cover Class A and B interest and the outstanding principal deficiency ledger does not exceed the
      outstanding note balance on Class B and Class C notes.
  II. The liquid ity reserve can only be used to cover Class C interest if the sum of such payments to
      cover Class A, B and C interest and the outstanding principal deficiency ledger does not exceed
      the outstanding note balance on Class C notes.

d. “ Payment holidays”
Customers on the Mortgage Trust flexible loan product are allowed to overpay and then “drawdown”
on their overpayments at any time (this is committed funding that forms part of the customer’s
mortgage conditions), provided that they don’t exceed their loan limit and are not in breach of their
mortgage conditions. Failure by MTL to fund any drawdown requests could result in customers
“setting off” against their monthly payments.

Example :

    Borro wer loan limit : £ 50,000
    Overpayments : £10,000 (co mmitted funding that MTL must fund should the customer request to
    drawdown)
    Revised mortgage balance : £40,000

In this example, the customer can redraw on the £10,000 overpayment at any time but can’t exceed the
£10,000 overpay ment. Alternatively, the customer can take payment holidays and counteract the
interest due on the monthly payment against the overpayments. In order to reduce overpayments and
the resultant committed funding, there is usually a 1% penalty for customers that prepay more than
20% of the original loan amount.

MTL customers can elect to take payment holidays in situations where overpayments are counteracted
against the current monthly interest charge.
                                                                                                          17
     Glossary of Terms
Example :

    Borro wer loan limit : £ 50,000
    Overpayments : £ 10,000
    Revised mortgage balance : £40,000
    Current monthly pay ment (on an interest only basis) : £200

The customer decides to take a payment holiday on his monthly payment of £200 (calculated on an
interest only basis). In this situation, the interest is capitalised and the revised mortgage balance is now
at £40,200 and the overpayment reduces by the corresponding amount. In effect, the customer has
drawn down £200 without a cash release from MTL to the customer.

Revised mortgage balance

    Loan limit : £ 50,000
    Overpayments : £ 9,800
    Revised mortgage balance : £40,200

Funding of payment holidays and ledger entries on the investor report :

Using the above example, as the loan balance has increased by £200 and the issuer is £200 short on
revenue, a diversion fro m the principal ledger to the revenue ledger is required to make up for the
interest shortfall / cap italised interest in respect of the payment holiday.

e. “Repayment of the GBP, E uro and US Dollar Notes”
GBP, Euro and US Dollar notes are repaid on each interest payment date, pro rata to the GBP
equivalent percentage at the closing date.

For example in PM12, the Class A1, A2a, A2b and A2c note repayment at the August 2010 interest
payment date were calculated as follo ws:

                                    GBP Equi valent of the Notes        GBP Equi valent %
              Class A1 Notes                       £815,217,391               62.79575%
              Class A2a Notes                      £145,000,000               11.16927%
              Class A2b Notes                      £168,965,517               13.01532%
              Class A2c Notes                      £169,021,739               13.01965%
              Total Notes                        £1,298,204,647

Where:
   Total availab le redemption funds equals £7,737,284.88

    Available redemption funds for the A1 notes equals :
    £7,737,284.88 x 62.795% (GBP equivalent percentage of the Class A1 notes at closing) =
    £4,858,686.35.

    Available redemption funds for the A2a notes equals :
    £7,737,284.88 x 11.169% (GBP equivalent percentage of the Class A2a notes at closing) =
    £864,198.34.

    Available redemption funds for the A2b notes equals :
    £7,737,284.88 x 13.015% (GBP equivalent percentage of the Class A2a notes at closing) =
    £1,007,032.55.

    Available redemption funds for the A2c notes equals :
    £7,737,284.88 x 13.019% (GBP equivalent percentage of the Class A2c notes at closing) =
    £1,007,367.64.


PM12 investor report for the quarter ending July 2010.




                                                                                                         18
     Glossary of Terms
   Principal payments made from Principal Income:
   PML Mandatory Further Advances                                                        0
   MTL Mandatory Further Advances                                                      -10
   Discretionary Further Advances                                                      -95
   A1 Swap Currency repayment                                                       -4,859
   A2a Note repayment                                                                 -864
   A2b Swap Currency repayment                                                      -1,007
   A2c Swap Currency repayment                                                      -1,007
   B1a Note repayment                                                                    0
   B1b Swap Currency repayment                                                           0
   C1a Note repayment                                                                    0
   C1b Swap Currency repayment                                                           0
   Total payments to be made this quarter                                           -7,842          -7,383
   Total closing cash balance                                                            0               0



The Class A2a available redemption funds (£864,000) are paid to Citibank as the principal paying
agent in sterling on each interest payment date for onward payment to the note holders.

The Class A1 and A2c available redemption funds are paid to the currency swap provider in sterling on
each quarterly interest payment date. From here, the currency swap provider, using the fixed US Dollar
exchange rate at the closing date, will convert this sterling value into US Dollars.
For examp le, the US Dollar Class A1 note repayment at the August 2010 interest payment date was
calculated as follo ws:

     US Dollar Class A1 note repayment equals:
     £4,858,686.35 (total available redemption funds for the A1 notes) x $1.84 (fixed US Dollar
     exchange rate at closing) = $8,939,850.

Fro m here, the currency swap provider will make this payment ($8,939,850) to Citibank as the US
principal paying agent, who in turn, will pass this onto the Class A1 note holders.

For examp le, the US Dollar Class A2c note repayment at the August 2010 interest payment date was
calculated as follo ws:

     US Dollar Class A2c note repayment equals:
     £1,007,367.64 (total available redemption funds for the A2c notes) x $1.84 (fixed US Dollar
     exchange rate at closing) = $1,853,528.90.

Fro m here, the currency swap provider will make this payment ($ 1,853,528.90) to Cit ibank as the US
principal paying agent, who in turn, will pass this onto the Class A2c note holders.

The Class A2b available redemption funds are paid to the currency swap provider in sterling on each
quarterly interest payment. Fro m here , the currency swap provider, using the fixed Eu ro exchange rate
at the closing date, will convert this sterling value into Euros.
For examp le, the Eu ro Class A2b note repayment at the August 2010 interest payment date was
calculated as follo ws:

     Euro Class A2b note repayment equals:
     £1,007,032.55 (total available redemption funds for the A2b notes) x €1.45 (fixed Euro exchange
     rate at closing) = €1,460,151.

Fro m here, the currency swap provider will make this payment (€1,460,151) to Citibank as the
principal paying agent, who in turn, will pass this onto the Class A2b note holders.




                                                                                                       19
     Glossary of Terms
(6) QUARTERLY POOL TABLES

The pool tables contains information on the underlying assets split by the originators, Paragon
Mortgages (PML), Mortgage Trust (MTL) and the overall combined informat ion as at the relevant
quarter end. The overview section within the pool tables are as follo ws:

                                                                              PML ORIGINATIONS PRE      PML ORIGINATIONS POST         MTL
                                                           OVERALL                1ST JAN 2004               1ST JAN 2004         ORIGINATIONS

AGGREGATE CLOSING BALANCE                                  1,031,752,911.51            182,334,849.96            483,389,595.84   366,028,465.71
NUMBER OF PROPERTIES                                                  7,649                     1,494                     3,214            2,941
WEIGHTED AVERAGE LTV                                                 79.69%                    78.03%                    79.21%           81.15%
MINIMUM LTV                                                           0.27%                     0.44%                     0.27%            4.06%
MAXIMUM LTV                                                          95.13%                    89.54%                    90.00%           95.13%
WEIGHTED AVERAGE SEASONING (YEARS)                                     4.77                      7.25                      4.24             4.23
MINIMUM SEASONING                                                      4.05                      6.72                      4.06             4.05
MAXIMUM SEASONING                                                      8.50                      8.50                      4.85             4.61
WEIGHTED AVERAGE LOAN SIZE                                       134,887.29                122,044.75                150,401.24       124,457.15
MINIMUM LOAN SIZE                                                    526.16                    526.16                  1,083.34        20,297.99
MAXIMUM LOAN SIZE                                              2,613,024.97              1,486,386.38              2,613,024.97       481,582.65
WEIGHTED AVERAGE REMAINING TERM (YEARS)                               17.13                     15.13                     17.53            17.60
MINIMUM REMAINING TERM                                                  -                         -                        0.58             0.58
MAXIMUM REMAINING TERM                                                26.00                     23.33                     25.92            26.00
% OF PROFESSIONAL LANDLORDS                                          67.34%                    88.39%                    77.41%           43.54%
% OF PRIVATE INVESTOR LANDLORDS                                      32.66%                    11.61%                    22.59%           56.46%
% OF OWNER OCCUPIED                                                   0.00%                     0.00%                     0.00%            0.00%
% IN LONDON AND SOUTH EAST                                           42.35%                    32.71%                    39.21%           51.29%
WEIGHTED AVERAGE RENTAL COVER FOR PROFESSIONAL LANDLORDS               1.68                      2.11                      1.60             1.41
AGGREGATE CLOSING REDRAW AMOUNT AS AT 30/07/2010                 227,950.62                       -                         -         227,950.62
LARGEST DRAWN BALANCE                                            481,582.65                       -                         -         481,582.65
AVERAGE DRAWN BALANCE                                            124,457.15                       -                         -         124,457.15
LARGEST POTENTIAL REDRAW AMOUNT                                  130,000.00                       -                         -         130,000.00
AVERAGE POTENTIAL REDRAW AMOUNT                                    3,863.57                       -                         -           3,863.57




     Aggregate Closing Balance
     The principal balances of mortgages in the portfolio at the relevant quarter end.

     Number of Properties
     The number of properties in the portfolio at the relevant quarter end.

     Weighted Average LTV
     The weighted average LTV of the mortgages at the latest quarter end which is calculated by
     dividing the current valuation by the current principal balance of the asset at the quarter end and
     weighting this by reference to the customer’s principal balance. Valuations are calculated at the
     mortgage origination date, and are updated when a discretionary further advance is released to the
     customer.

     Weighted Average Seasoning (years)
     The weighted average period (in years) that assets have been running since year of origination, at
     the relevant quarter end.

     % of Professional Landlords
     The percentage of principal balances with professional landlords at the relevant quarter end. A
     professional landlord is defined as a landlord who has three or more buy to let properties and at
     least twelve months experience within the buy to let market.

     % of Private Investor Landlords
     The percentage of the private investor landlords at the relevant quarter end. A private investor is
     defined as a landlord who has less than three buy to let properties.

     % of Owner Occupied
     The percentage of principal balances that are owner occupied at the relevant quarter end.

     % in London and South East
     The percentage of principal balances that cover the London and South East regions at the relevant
     quarter end.

     Weighted Average Rental Cover for Professional Landlords
     As part of the initial credit assessment for professional landlords only, t his measures a landlord’s
     ability to cover the monthly interest payment against the monthly ren tal income at the mortgage
     origination date. This is calculated at the mortgage origination date by dividing the monthly rental
     income by the monthly interest due (based on either the Paragon reference rate or charging rate as
                                                                                                                                             20
     Glossary of Terms
      applicable). The reference rate is based upon long term rates and reviewed by the group’s credit
      committee on a quarterly basis.

      Aggregate Closing Redraw Amount
      The principal balances drawn by borro wers at the relevant quarter end. Th is is only available to the
      Mortgage Trust flexible loan borrowers, that allows customers to overpay and redraw this amount,
      up to an agreed limit.

      Average Potential Redraw Amount
      The average potential redraw amount at the relevant quarter end in respect of the Mortgage Trust
      flexib le mo rtgages.

The detailed info rmation of the underlying assets is as follows:

a.       “Loan to value ratio (LTV)”
The weighted average LTV of the assets at the relevant quarter end. This is calculated by dividing the
current valuation by the current principal balance of the asset at the quarter end and weighting this
against the customer’s principal balance. Valuations are calculated at the mortgage origination date,
and are updated when a discretionary further advance is released to the customer.

LOAN TO VALUE RATIOS (LTV)

                                                               CURRENT PRINCIPAL
LOAN TO VALUE RATIOS (%)                                              BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

> 0 < = 25                                                            1,234,513.67       0.12%                   47        0.61%
> 25 < = 50                                                          20,527,061.95       1.99%                  224        2.93%
> 50 < = 55                                                           9,650,756.04       0.94%                   87        1.14%
> 55 < = 60                                                          13,556,399.61       1.31%                  118        1.54%
> 60 < = 65                                                          25,742,129.48       2.49%                  199        2.60%
> 65 < = 70                                                          48,417,391.04       4.69%                  312        4.08%
> 70 < = 75                                                          89,556,955.58       8.68%                  576        7.53%
> 75 < = 80                                                         152,792,180.23      14.81%                  989       12.93%
> 80 < = 85                                                         259,042,183.92      25.11%                1,780       23.27%
> 85 < = 86                                                         264,784,149.31      25.66%                2,044       26.72%
> 86 < = 87                                                         132,526,659.63      12.84%                1,151       15.05%
> 87 < = 88                                                          10,089,688.95       0.98%                   92        1.20%
> 88 < = 89                                                           1,712,005.87       0.17%                   17        0.22%
> 89 < = 90                                                           2,049,489.00       0.20%                   12        0.16%
> 90 < = 95                                                                    -         0.00%                  -          0.00%
> 95 < = 97                                                              71,347.23       0.01%                    1        0.01%
> 97 < = 100                                                                   -         0.00%                  -          0.00%
> 100                                                                          -         0.00%                  -          0.00%

                                                                  1,031,752,911.51                            7,649

AVERAGE LTV WEIGHTED BY PRINCIPAL BALANCE                                                                    79.69%



b.       “Loan to value ratios based on the Nationwide index”
The weighted average LTV of the assets based on the Nationwide index valuation. These are updated
quarterly at the end of March, June, September and December.

LOAN TO VALUE RATIOS BASED ON NATIONWIDE INDEX AS AT JUNE 10

                                                               CURRENT PRINCIPAL
LOAN TO VALUE RATIOS (%)                                              BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

> 0 < = 25                                                            1,896,905.19       0.18%                   68        0.89%
> 25 < = 50                                                          34,855,347.09       3.38%                  369        4.82%
> 50 < = 55                                                          18,180,761.34       1.76%                  164        2.14%
> 55 < = 60                                                          32,428,878.71       3.14%                  253        3.31%
> 60 < = 65                                                          61,204,740.51       5.93%                  385        5.03%
> 65 < = 70                                                          78,645,987.23       7.62%                  498        6.51%
> 70 < = 75                                                         132,506,436.97      12.84%                  849       11.10%
> 75 < = 80                                                         122,677,959.72      11.89%                  829       10.84%
> 80 < = 85                                                         252,848,182.94      24.51%                1,838       24.03%
> 85 < = 86                                                          40,058,517.54       3.88%                  317        4.14%
> 86 < = 87                                                          43,222,965.80       4.19%                  386        5.05%
> 87 < = 88                                                          40,780,906.00       3.95%                  345        4.51%
> 88 < = 89                                                          40,947,818.66       3.97%                  339        4.43%
> 89 < = 90                                                          32,910,562.59       3.19%                  296        3.87%
> 90 < = 95                                                          63,912,342.04       6.19%                  498        6.51%
> 95 < = 97                                                           8,474,234.91       0.82%                   56        0.73%
> 97 < = 100                                                          2,031,144.06       0.20%                   15        0.20%
> 100                                                                24,169,220.21       2.34%                  144        1.88%

                                                                  1,031,752,911.51                            7,649

AVERAGE LTV WEIGHTED BY PRINCIPAL BALANCE                                                                    78.39%




                                                                                                                             21
       Glossary of Terms
c.       “Loan to value ratios based on the Halifax index”
The weighted average LTV of the assets based on the Halifax index valuation. These are updated
quarterly, at the end of March, June, September and December.

LOAN TO VALUE RATIOS BASED ON HALIFAX INDEX AS AT JUNE 10

                                                            CURRENT PRINCIPAL
LOAN TO VALUE RATIOS (%)                                           BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

> 0 < = 25                                                         1,928,301.33       0.19%                   69        0.90%
> 25 < = 50                                                       29,483,684.35       2.86%                  329        4.30%
> 50 < = 55                                                       13,442,470.72       1.30%                  142        1.86%
> 55 < = 60                                                       20,576,508.51       1.99%                  189        2.47%
> 60 < = 65                                                       47,329,207.55       4.59%                  298        3.90%
> 65 < = 70                                                       53,177,062.97       5.15%                  369        4.82%
> 70 < = 75                                                       83,003,306.89       8.04%                  561        7.33%
> 75 < = 80                                                      114,355,142.96      11.08%                  771       10.08%
> 80 < = 85                                                      241,787,140.30      23.43%                1,639       21.43%
> 85 < = 86                                                       44,170,026.79       4.28%                  286        3.74%
> 86 < = 87                                                       29,511,625.95       2.86%                  209        2.73%
> 87 < = 88                                                       18,200,945.78       1.76%                  129        1.69%
> 88 < = 89                                                       39,267,914.36       3.81%                  274        3.58%
> 89 < = 90                                                       31,871,772.56       3.09%                  279        3.65%
> 90 < = 95                                                      132,830,149.83      12.87%                1,128       14.75%
> 95 < = 97                                                       50,223,600.14       4.87%                  429        5.61%
> 97 < = 100                                                      32,847,119.44       3.18%                  240        3.14%
> 100                                                             47,746,931.08       4.63%                  308        4.03%

                                                               1,031,752,911.51                            7,649

AVERAGE LTV WEIGHTED BY PRINCIPAL BALANCE                                                                 82.15%




d.        “Product summary”
The current principal balances / number of mo rtgages split by product at the relevant quarter end –
variable rate, fixed rate, Libor rate, capped rate and base rate tracker rate loans .

PRODUCT SUMMARY

                                                            CURRENT PRINCIPAL
PRODUCT                                                            BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

Variable                                                          56,643,153.23       5.49%                  492        6.43%
Fixed                                                             62,178,258.14       6.03%                  475        6.21%
Libor Linked                                                     912,931,500.14      88.48%                6,682       87.36%
Capped                                                                      -         0.00%                  -          0.00%
Base Rate Tracker                                                           -         0.00%                  -          0.00%

                                                               1,031,752,911.51                            7,649




e.        “Product summary by repayment method”
The current principal balances / number of mortgages split by repayment type at the relevant quarter
end - interest only/endowment and repay ment.

PRODUCT SUMMARY BY REPAYMENT METHOD

                                                            CURRENT PRINCIPAL
REPAYMENT METHOD                                                   BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

Interest only / Endowment                                        982,878,615.86      95.26%                7,080       92.56%
Repayment                                                         48,874,295.65       4.74%                  569        7.44%

                                                               1,031,752,911.51                            7,649




                                                                                                                          22
       Glossary of Terms
f.       “Current Principal Balance outstanding”
The current principal balances / number of mortgages split by principal balance bands . The weighted
average loan size is calcu lated by dividing the current principal balances by the number of mortgages at
the relevant quarter end.

CURRENT PRINCIPAL BALANCE OUTSTANDING

                                              CURRENT PRINCIPAL
CURRENT PRINCIPAL BALANCE (£)                        BALANCE £       % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

0.00 to 100,000                                    227,487,749.68       22.05%                3,172       41.47%
100,000.01 to 200,000                              458,847,329.79       44.47%                3,426       44.79%
200,000.01 to 300,000                              167,902,226.83       16.27%                  705        9.22%
300,000.01 to 400,000                               57,582,081.88        5.58%                  168        2.20%
400,000.01 to 500,000                               28,750,820.92        2.79%                   65        0.85%
500,000.01 to 750,000                               39,453,746.61        3.82%                   67        0.88%
750,000.01 to 1,000,000                             22,906,474.24        2.22%                   26        0.34%
1,000,000.01 to 1,250,000                           10,938,686.23        1.06%                   10        0.13%
1,250,000.01 to 1,500,000                            4,329,216.38        0.42%                    3        0.04%
1,500,000.01 to 1,750,000                            3,225,560.00        0.31%                    2        0.03%
1,750,000.01 to 2,000,000                            5,715,493.98        0.55%                    3        0.04%
over 2,000,000                                       4,613,524.97        0.45%                    2        0.03%

                                                 1,031,752,911.51                             7,649

WEIGHTED AVERAGE LOAN SIZE                            134,887.29




g.       “Property Tenure”
The current principal balances / number of mortgages split by tenure at the relevant quarter end –
freehold, leasehold and feudal.

PROPERTY TENURE

                                              CURRENT PRINCIPAL
TENURE                                               BALANCE £       % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

Freehold                                           667,520,961.98       64.70%                4,622       60.43%
Leasehold                                          349,241,118.82       33.85%                2,845       37.19%
Feudal                                              14,990,830.71        1.45%                  182        2.38%

                                                 1,031,752,911.51                             7,649




h.      “Seasoning of Mortgages”
The current principal balances / number of mortgages split by year of origination, resulting in the
weighted average seasoning (months) at the relevant quarter end.

SEASONING OF MORTGAGES BY YEAR

                                              CURRENT PRINCIPAL
ORIGINATION YEAR                                     BALANCE £       % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

1996                                                          -          0.00%                  -          0.00%
1997                                                          -          0.00%                  -          0.00%
1998                                                          -          0.00%                  -          0.00%
1999                                                          -          0.00%                  -          0.00%
2000                                                          -          0.00%                  -          0.00%
2001                                                          -          0.00%                  -          0.00%
2002                                                36,247,761.99        3.51%                  313        4.09%
2003                                               146,087,087.97       14.16%                1,181       15.44%
2004                                                          -          0.00%                  -          0.00%
2005                                                   465,109.53        0.05%                    2        0.03%
2006                                               848,952,952.02       82.28%                6,153       80.44%

                                                 1,031,752,911.51                             7,649


WEIGHTED AVERAGE SEASONING (MONTHS)                                                           57.22




                                                                                                             23
       Glossary of Terms
i.      “Maturity of Mortgages”
The current principal balances / number of mortgages split by the remaining term (years), resulting in
the weighted average remaining term to maturity at the relevant quarter end.

MATURITY OF MORTGAGES

                                                      CURRENT PRINCIPAL
REMAINING TERM (YEARS)                                       BALANCE £                    % OF TOTAL NUMBER OF MORTGAGES        % OF TOTAL

>0<5                                                          14,416,420.35                   1.40%                   148            1.93%
>= 5 < 10                                                     75,766,022.69                   7.34%                   618            8.08%
>= 10 < 15                                                   138,157,654.15                  13.39%                 1,037           13.56%
>= 15 < 20                                                   327,195,785.73                  31.71%                 2,418           31.61%
>= 20 < 25                                                   456,849,922.41                  44.28%                 3,275           42.82%
>= 25 < 30                                                    19,367,106.18                   1.88%                   153            2.00%
>= 30                                                                   -                     0.00%                   -              0.00%

                                                           1,031,752,911.51                                         7,649

WEIGHTED AVERAGE REMAINING TERM TO MATURITY                                                                         17.13




j.        “Loan Purpose”
The current principal balances / number of mo rtgages split by loan purpose at the relevant quarter end –
house / flat purchase and remortgage.

LOAN PURPOSE

                                                      CURRENT PRINCIPAL
USE OF PROCEEDS                                              BALANCE £                    % OF TOTAL NUMBER OF MORTGAGES        % OF TOTAL

House / Flat purchase                                        495,954,803.14                  48.07%                 3,916           51.20%
Remortgage                                                   535,798,108.37                  51.93%                 3,733           48.80%

                                                           1,031,752,911.51                                         7,649




k.       “Geographical dispersion”
The current principal balances / number of mo rtgages split by geographical region at the relevant
quarter end, calculated by reference to the property’s post code.
GEOGRAPHICAL DISPERSION

                                                                                                                                  WEIGHTED
                                              CURRENT PRINCIPAL                                                             AVERAGE LOAN TO
REGION                                               BALANCE £                % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL             VALUE

North                                               38,469,495.02                 3.73%                  417        5.45%            79.82%
North West                                         120,992,829.36                11.73%                1,064       13.91%            81.04%
Yorkshire & Humberside                             114,990,208.77                11.15%                1,011       13.22%            79.55%
East Midlands                                       61,514,164.69                 5.96%                  496        6.48%            80.12%
West Midlands                                       47,971,580.97                 4.65%                  423        5.53%            79.02%
East Anglia                                         36,587,621.72                 3.55%                  319        4.17%            81.67%
South East (excl. GL)                              277,718,053.77                26.92%                1,822       23.82%            80.13%
South West                                         116,068,715.08                11.25%                  862       11.27%            80.09%
Greater London                                     159,229,410.18                15.43%                  659        8.62%            77.22%
Wales                                               42,345,094.58                 4.10%                  387        5.06%            80.08%
Scotland                                            14,990,830.71                 1.45%                  182        2.38%            79.19%
Northern Ireland                                       874,906.66                 0.08%                    7        0.09%            75.34%

                                                 1,031,752,911.51                                      7,649                         79.69%




l.       “Interest Charging Rate”
The current principal balances / number of mo rtgages split by interest charging rate on the mortgages at
the quarter end, resulting in the weighted average yield at the relevant quarter end.

INTEREST CHARGING RATE

                                                      CURRENT PRINCIPAL
INTEREST RATE BANDS                                          BALANCE £                    % OF TOTAL NUMBER OF MORTGAGES        % OF TOTAL

less than 2.00%                                               18,191,686.56                   1.76%                   167            2.18%
2.01% to 2.50%                                               810,056,028.02                  78.51%                 6,041           78.98%
2.51% to 3.00%                                               140,843,086.56                  13.65%                   954           12.47%
3.01% to 3.50%                                                   188,575.60                   0.02%                     5            0.07%
3.51% to 4.00%                                                 2,140,262.00                   0.21%                    23            0.30%
4.01% to 4.50%                                                19,416,806.75                   1.88%                   164            2.14%
4.51% to 5.00%                                                 3,430,084.13                   0.33%                    30            0.39%
5.01% to 5.50%                                                16,645,164.11                   1.61%                   106            1.39%
5.51% to 6.00%                                                13,199,223.48                   1.28%                   103            1.35%
6.01% to 6.50%                                                 3,580,233.67                   0.35%                    22            0.29%
6.51% to 7.00%                                                 3,831,753.67                   0.37%                    32            0.42%
7.01% to 7.50%                                                   214,896.00                   0.02%                     1            0.01%
7.51% to 8.00%                                                    15,110.96                   0.00%                     1            0.01%
more than 8.00%                                                         -                     0.00%                   -              0.00%

                                                           1,031,752,911.51                                         7,649

WEIGHTED AVERAGE INTEREST CHARGING RATE                                                                            2.568%



                                                                                                                                        24
         Glossary of Terms
m.       “Number of month in arrears – non receiver of rent / possession cases”
The current principal balances / number of mortgages (excluding receiver or rent and possession cases)
split by arrears bands, resulting in the weighted average number of months in arrears at the relevant
quarter end.

NUMBER OF MONTHS IN ARREARS- NON RECEIVER OF RENT / POSSESSION CASES

                                                                CURRENT PRINCIPAL
NUMBER OF MONTHS                                                       BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

up to 1                                                            1,002,040,755.85      99.54%                7,467       99.56%
>1<=2                                                                  3,886,140.74       0.39%                   28        0.37%
>2<=3                                                                    332,963.08       0.03%                    2        0.03%
>3<=4                                                                    135,335.16       0.01%                    1        0.01%
>4<=5                                                                           -         0.00%                  -          0.00%
>5<=6                                                                     70,440.60       0.01%                    1        0.01%
> 6 < = 12                                                               201,717.75       0.02%                    1        0.01%
more than 12                                                                    -         0.00%                  -          0.00%

                                                                   1,006,667,353.18                            7,500

WEIGHTED AVERAGE NO. OF MONTHS IN ARREARS (FOR ARREARS CASES)                                                  1.033




n.        “Number of months in arrears – receiver of rent / possession cases”
The current principal balances / number of mortgages (receiver of rent and possession cases only) split
by arrears bands, resulting in the weighted average number of months in arrears. A receiver of rent is
appointed on investment home loan cases usually when the customer is > 2 months in arrears. Receiver
of rent is the equivalent of a possession case on an owner occupied mortgage. The full rental stream
fro m the property is diverted to the receiver, who in turn, passes the rental stream onto the
administrator or if the property is vacant, the receiver can sell the property.

NUMBER OF MONTHS IN ARREARS- RECEIVER OF RENT / POSSESSION CASES

                                                                CURRENT PRINCIPAL
NUMBER OF MONTHS                                                       BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

up to 1                                                               15,371,017.51      61.27%                  91        61.07%
>1<=2                                                                    169,465.00       0.68%                   1         0.67%
>2<=3                                                                  1,365,314.60       5.44%                  10         6.71%
>3<=4                                                                    106,799.60       0.43%                   1         0.67%
>4<=5                                                                     93,874.00       0.37%                   1         0.67%
>5<=6                                                                    491,691.63       1.96%                   3         2.01%
> 6 < = 12                                                             2,474,605.73       9.86%                  17        11.41%
more than 12                                                           5,012,790.26      19.98%                  25        16.78%

                                                                      25,085,558.33                             149

WEIGHTED AVERAGE NO. OF MONTHS IN ARREARS (FOR ARREARS CASES)                                                 10.735




o.      “Occupancy”
The current principal balances / number of mortgages split by occupancy type at the relevant quarter
end – owner occupied, professional landlords and private investor landlords.
OCCUPANCY

                                                                CURRENT PRINCIPAL
OCCUPANCY                                                              BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

Owner Occupied                                                                  -         0.00%                  -          0.00%
Professional Landlords                                               694,748,332.55      67.34%                5,185       67.79%
Private Investor Landlords                                           337,004,578.96      32.66%                2,464       32.21%

                                                                   1,031,752,911.51                            7,649




p.       “Investment Home Loan : Occupancy”
The current principal balances / number of mortgages split by letting type at the relevant quarter end –
corporate and non corporate.

INVESTMENT HOME LOAN : OCCUPANCY

                                                                CURRENT PRINCIPAL
LETTING TYPE                                                           BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

Corporate                                                             60,167,062.93       5.83%                  446        5.83%
Non Corporate                                                        971,585,848.58      94.17%                7,203       94.17%

                                                                   1,031,752,911.51                            7,649




                                                                                                                              25
       Glossary of Terms
q.       “Interest Coverage Ratio”
As part of the initial credit assessment for professional landlords only, this measures a landlord’s ability
to cover the monthly interest payment against the monthly rental income at the mortgage origination
date. This is calculated at the mortgage origination date by dividing t he monthly rental income by the
monthly interest due (based on either the Paragon reference rate or charging rate as applicable). The
reference rate is based upon long term rates and reviewed by the group’s credit committee on a
quarterly basis.

INTEREST COVERAGE RATIO

                                                  CURRENT PRINCIPAL
ICR BAND                                                 BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

<1.2                                                    52,499,511.94       7.56%                  384        7.41%
>=1.2   <1.3                                           167,112,233.17      24.05%                1,194       23.03%
>=1.3   <1.5                                           186,628,857.87      26.86%                1,421       27.41%
>=1.5   <2.0                                           179,278,742.05      25.80%                1,387       26.75%
>=2.0   <2.5                                            61,059,502.36       8.79%                  383        7.39%
>=2.5   <3.0                                            22,818,226.09       3.28%                  180        3.47%
>=3.0   <3.5                                             8,176,832.00       1.18%                   66        1.27%
>=3.5   <4.0                                             4,603,304.02       0.66%                   37        0.71%
>=4.0   <4.5                                             3,267,765.51       0.47%                   23        0.44%
>=4.5   <5.0                                             1,446,913.92       0.21%                   17        0.33%
>=5.0                                                    7,856,443.62       1.13%                   93        1.79%

                                                       694,748,332.55                            5,185



WEIGHTED AVERAGE ICR FOR PROFESSIONAL LANDLORDS                                                   1.68




r.      “Number of Properties”
The number of properties a landlord has within that SPV, split by current principal balances / number
of mortgages at the relevant quarter end.

NUMBER OF PROPERTIES IN PORTFOLIO


                                                  CURRENT PRINCIPAL
NUMBER OF PROPERTIES                                     BALANCE £      % OF TOTAL NUMBER OF MORTGAGES   % OF TOTAL

<3                                                     692,081,242.14      67.08%                5,109       66.79%
>=3 <=10                                               257,021,019.71      24.91%                1,982       25.91%
>10 <=20                                                46,983,897.98       4.55%                  354        4.63%
>20 <=30                                                 9,599,155.48       0.93%                   93        1.22%
>30 <=40                                                17,130,652.79       1.66%                   67        0.88%
>40 <=50                                                 8,936,943.41       0.87%                   44        0.58%
>50                                                               -         0.00%                  -          0.00%

                                                     1,031,752,911.51                            7,649




The investor reports, pool tables and summary section can all be found on the Paragon website
http://www.paragon-group.co.uk/




                                                                                                                26
        Glossary of Terms
                Current Consumer Finance Backed Transactions


Issuer                                                         PSF1                       PPAF3
Closing Date                                             15 December 2004               19 May 2005
Lead Managers                                              Barclays Capital        Barclays Capital/HSBC
Rating Agencies                                               S&P/Fitch                S&P/Moody's
GBP Equivalent Note Value                                   £300,000,000               £450,000,000
% of Prefunding                                                19.72%                       N/A
% of AAA/Aaa Notes                                             77.00%                     72.00%
% of AA/Aa2 Notes                                                N/A                       9.00%
% of A/A2 Notes                                                14.00%                      9.00%
% of BBB/Baa2 Notes                                             9.00%                     10.00%
% of First Loss Fund                                            4.50%                      9.00%
Minimum Mortgage Rate                                     GBP Libor + 4.5%            GBP Libor + 4%
Note Margins:
AAA/Aaa Notes (Sterling)                                       0.20%                       0.22%
AAA/Aaa Notes (Euro)                                            N/A                        0.22%
AA/Aa2 Notes (Sterling)                                         N/A                        0.33%
AA/Aa2 Notes (Euro)                                             N/A                        0.33%
A/A2 Notes (Sterling)                                          0.75%                       0.60%
A/A2 Notes (Euro)                                               N/A                        0.57%
BBB/Baa2 Notes (Sterling)                                      1.00%                       0.95%
BBB/Baa2 Notes (Euro)                                           N/A                        0.90%
Senior Administration Fee                                      0.15%                       0.40%
Junior Administration Fee                                      0.15%                       0.45%
Substitute Administrator's Commitment Fee :
  Secured loans                                                 0.004%                      0.004%
  Car Finance contracts                                            N/A                     0.0135%
  Unsecured loans                                                  N/A                     0.0175%
  Retail Finance                                                   N/A                     0.0110%
Substitution Period                                       15/12/04 - 15/11/08        20/05/05 - 15/04/09
% of Cash limit for Substitutions                                  N/A                        27%
Optional Redemption Date                                  15 November 2008              15 April 2009
Step Up Date                                              15 November 2009              15 April 2010
Determination Events to pay down the Subordinate        Later of i) 5 years from  5 years from closing and
Notes                                                 closing ii) % Class B and when the % Class B, C &
                                                     Class C Notes to total Notes D Notes to total Notes
                                                             equals 46.1%                equals 56%
Clean Up Call (20% of the Closing GBP Note Value)             £60,000,000               £90,000,000

Note Maturity Dates                                        November 2035                 April 2036
Provisional Pool Balance :
 Secured loans                                              £241,179,698               £209,804,917
 Car Finance contracts                                           N/A                   £128,823,095
 Unsecured loans                                                 N/A                    £69,520,565
 Retail Finance                                                  N/A                    £21,490,125
Originator                                                       PPF                PCF/PPF/UCL/CFUK
% of Secured at Closing                                       100.00%                     48.90%
% of Cars at Closing                                             N/A                      30.74%
% of Unsecured at Closing                                        N/A                      14.92%
% of Retail at Closing                                           N/A                       5.44%
WA LTV at Closing                                              87.53%                     88.49%
% of Secured Limit for Substitutions                            100%                        80%
% of Cars/Retail/Unsecured Limit for Substitutions               N/A                      60.00%
% of Unsecured Limit for Substitutions                           N/A                      15.00%
% of Unsecured/Retail Limit for Substitutions                    N/A                      25.00%




                                                                                                           27
    Glossary of Terms
             Note: This document is an aid to understanding the investor reports and not a comprehensive list of all legally defined terms held
             within the agreements of each securitisation. This document will be updated in line with investor feedback.




                            GLOSSARY OF TER MS FOR THE INVES TOR REPORTS ISSUED B Y
                                PARAGON FINANCE PLC ON B EHALF OF THE ISS UERS


             Current Consumer Finance B acked Transactions


Issuers                                                               Closing Date             Originators               Quarter Ends for the Issuers


Paragon Secured Finance (No.1) PLC                   “PS F1”          15 December 2004         PPF                       January/April/July/October


Paragon Personal & Auto Finance (No.3) PLC           “PPAF3”          19 M ay 2005             PPF, PCF,                 M arch/June/September/December
                                                                                               CFUK, UCL




             Abbreviation for the Originators

             PCF        =          Paragon Car Finance Limited
             PPF        =          Paragon Personal Finance Limited
             UCL        =          Universal Credit Limited
             CFUK       =          Colonial Finance (UK) Limited




                                                                                                                                            28
                   Glossary of Terms
CURRENT CONSUMER FINANCE TRANSACTIONS – PSF1

                 (1) SECURITY LEVEL DATA SECTION – PA GE 1

Paragon Secured Finance (No.1) PLC
This performance report is issued by Paragon Finance PLC for and on behalf of Paragon Secured Finance (No.1) PLC

N.B. This data fact sheet and its notes can only be a summary of certain features of the bonds and their structure. No representation can be made that the information herein is accurate or complete and no liability is
accepted therefor. Reference should be made to the issuer documentation for a full description of the bonds and their structure. This data fact sheet and its notes are for information purposes only and are not intended as
an offer or invitation with respect to the purchase or sale of any security. Reliance should not be placedon the information herein when making any decision whether to buy, hold or sell bonds (or other securities) or for any
other purpose.


                                                                                                            http://www.paragon-group.co.uk
FOR FURTHER ASSISTANCE ON THE INVESTOR REPORTS, PLEASE REFER TO THE "INVESTOR TERMS" POSTED ON THE PARAGON WEBSITE

Summary Transaction Features


Name of Issuer                                                                                                                                                                                                                                                                     PSF1 PLC
Originator % at Closing                                                                                                                                                                                                                             PPF               100%
Originator % at the Quarter End                                                                                                                                                                                                                     PPF               100%
Date of Issue                                                                                                                                                                                                                                                                      15-Dec-04
Date of Production                                                                                                                                                                                                                                                                 17-Aug-10

Security Level Data                                                                                                                                                                                                                          Senior/Subordinate

                                                                                                             Class A Notes                             Class B Notes                         Class C Notes
Fitch Rating at Closing                                                                                          AAA                                         A                                   BBB
Standard & Poor's Rating at Closing                                                                              AAA                                         A                                   BBB
Current Fitch Rating                                                                                             AAA                                         A                                   BBB
Current Standard & Poors Rating                                                                                  AAA                                         A                                   BBB-
ISIN                                                                                                         XS0208202415                              XS0208202688                          XS0208202845

Original Issue Amount (£'000)                                                                                    £231,000                                   £42,000                               £27,000                                                                           £300,000
Previous Outstanding Note Principal (1)                                                                          £100,609                                   £42,000                               £27,000                                                                           £169,609
Outstanding Note Principal (1)                                                                                    £93,109                                   £42,000                               £27,000                                                                           £162,109
Current Pool Factor                                                                                              0.403070                                  1.000000                              1.000000
Previous Pool Factor                                                                                             0.435538                                  1.000000                              1.000000
Note Interest Margins:                                                                                             40 bp                                     150 bp                                200 bp
Current Note Interest Rates:                                                                                    1.09625%                                  2.19625%                              2.69625%                                                                             1.62%
Previous Note Interest Rates:                                                                                   1.03938%                                  2.13938%                              2.63938%
Optional Redemption (Call) Dates                                                                                15-Nov-08                                 15-Nov-08                             15-Nov-08
Step-up Dates                                                                                                   15-Nov-09                                 15-Nov-09                             15-Nov-09
Step-up Margins                                                                                                    40 bp                                     150 bp                                200 bp

Class B & C Notes as a percentage Class A Notes at issue                                                                                                                                                                                                                            29.87%
Outstanding Class B &C Notes as a percentage of Outstanding Class A Notes                                                                                                                                                                                                           74.11%
Determination Event for Paying Class B Notes                                                                                                                                                                                                    Class A Notes           =          £81,000
                                                                                                                                                                                                                                          or the IPD falling in February 2010, whichever is the later
Interest Payment Cycle                                                                                                                                                                                                                                                             Quarterly
Interest Payment Date                                                                                                                                                                                                                                                             16-Aug-10
Previous Interest Period (No. of Days)                                                                                                                                                                                                 91         15-Feb-10                       16-May-10
Current Interest Period (No. of Days)                                                                                                                                                                                                  91         17-May-10                       15-Aug-10
Interest Calculated on                                                                                                                                                                                                                                                          ACTUAL/365
Record Date                                                                                                                                                                                                                                                                       02-Aug-10



PSF1 INVESTOR REPORT QUARTER ENDING JULY 2010




a. “Pool Factor”
Equals on the first day of the interest period, the principal amount outstanding on all classes of notes
(after deducting any principal repayment due on that day) dividing the principal amount outstanding by
the following:

                                                                                                                                  Class A Notes                                                   Class B Notes                    Class C Notes
                                                      Note Denomination                                                           £50,000                                                         £50,000                          £50,000

b. “Current Note Interest Rates”
This is the weighted average note interest rate for the reported period, which is calculated on a
weighted average basis by reference to the note value on the preceding interest payment date.

c. “Determination Event”
Class B and C note holders provide credit coverage for the Class A note holders at the closing date.
When the Class A note holders are repaid, the coverage increases. On a date when the coverage number
doubles the ratio at the closing date, Class B and C note holders are paid pro rata, ensuring that the ratio
between Class B and C notes at the closing date is still maintained.

The Class B and C note holders are repaid on the later of (a) five years fro m the closing date and (b)
when Class B/C note coverage number doubles the ratio at the closing date, subject to meeting a
cleared Principal Deficiency Ledger balance and the balance of cases > 3 months arrears being less
than 10% of the portfolio balance.

The current position is as follows:

                 PSF1 are paying down the Class A Notes only. The Class A, B and C Notes will pay down on a
                 pro rata basis on the later of (a) when the original deal size halves in value, (b) five years from the
                 closing date, subject to meeting a cleared Principal Deficiency Ledger balance and the balance of
                 cases > 3 months arrears being less than 10% of the portfolio balance at each quarter end. The five
                 year lock out period expired in November 2009.

d. “ Interest Payment Date”
The distribution of interest and principal to the principal paying agent is 15 days following the quarter
end. (principal determination date).




                                                                                                                                                                                                                                                                                                        29
                 Glossary of Terms
                    e. “ Record Date”
                    The date on which registered holders of securities are determined for making distributions on the next
                    interest payment date.

                    f. “ Principal Determination Date”
                    The last working day of the quarter end when the administrator calculates the principal note repayment
                    and advises the principal paying agent 5 business days later.



                    (2) PORTFOLIO ASSET MOVEMENTS SECTIO N – PAGE 2

        Asset Movements

        Mortgages                                                                               As at Closing                  Last Quarter     This Quarter      Additions this quarter   Repurchases this        Current Principal
                                                                                                                                 Balance       Redemptions and                                quarter                Outstanding
                                                                                                                                                 Repayments
        Current Principal Balance (£'000)                                                               240,291                      169,609              7,556                       56                       0            162,109
        Accrued Arrears and Interest Sold to Issuer (£'000)                                                 542                            0                  0                        0                       0                  0
                                                                                                                                                              0                        0                       0                  0

        Total (£'000)                                                                                   240,833                      169,609              7,556                       56                       0            162,109

        Consumer Loans

        Current Principal Balance (£'000)
        Accrued Arrears and Interest Sold to Issuer (£'000)

        Total (£'000)

        Credit Enhancement                                                                                    0                            0                                                                                      0
        Pre Funding Reserve                                                                              59,167                            0                                                                                      0
        Principal Cash                                                                                        0                            0                                                                                      0
        Unreplenished Losses on Mortgages                                                                     0                            0                                                                                      0
        Outstanding Note Principal                                                                      300,000                      169,609                                                                                162,109


        Principal/Revenue Analysis                                                                       PDD =    30/07/2010                                                               Principal (£'000)       Revenue (£'000)
        Opening cash balance                                                                                                                                                                                  0                   0
        Total principal cash received this period from assets                                                                                                                                             5,946
        Quarterly Interest Income                                                                                                                                                                                              3,931
        Redemption Income                                                                                                                                                                                                        303
        Investment Income                                                                                                                                                                                                         24
        Drawing on Sub Loan for Interest Shortfalls
        Initial income for distribution this period                                                                                                                                                       5,946                4,258
        Revenue adjustment for payment of Accrued Arrears and Interest Sold at closing                                                                                                                        0                    0
        Final income for distribution this period                                                                                                                                                         5,946                4,258
        Revenue payments made or accrued from Revenue Income:
   1    Accrued Arrears and Interest not Sold to Issuer                                                                                                                                                                            0
   2    Trustee Fee                                                                                                                                                                                                               -2
   3    Senior Administrator Fee/ Out of Pocket Expenses/ Substitute Administrators Commitment Fee                                                                                                                              -153
 4(i)   Payments to Swap Counterparty                                                                                                                                                                                              0
4(ii)   A Note Interest                                                                                                                                                                                                         -275
   5    B Note Interest                                                                                                                                                                                                         -230
   6    C Note Interest                                                                                                                                                                                                         -181
   7    Third Party payments for Corporation Tax and VAT                                                                                                                                                                          -7
   8    PDL Replenishment                                                                                                                                                                                 1,610               -1,610
   9    First Loss Fund Replenishment                                                                                                                                                                                              0
  10    Termination Fees to Swap Provider                                                                                                                                                                                          0
  11    Cap/Swap Retention fund                                                                                                                                                                                                    0
  12    Administrator Fee (Junior)                                                                                                                                                                                               -64
  13    Surplus income to the Issuer                                                                                                                                                                                          -1,736
        Principal payments made from Principal Income:
        Mandatory Further Advances                                                                                                                                                                            0
        Discretionary Further Advances                                                                                                                                                                      -56
        Purchase of Furher Assets during the Period                                                                                                                                                           0
        A Note repayments                                                                                                                                                                                -7,500
        B Note repayments                                                                                                                                                                                     0
        C Note repayments                                                                                                                                                                                     0
        Total payments to be made this quarter                                                                                                                                                           -7,556               -4,258
        Total closing cash balance                                                                                                                                                                            0                    0



        PSF1 INVESTOR REPORT QUARTER ENDING JULY 2010




                    a. “ Asset Movement”
                    This section details the scheduled principal fro m monthly payments and redemption and any write offs
                    of mo rtgage balances. The “additions” section relates to new assets purchased by the issuer during the
                    quarter and in respect of mandatory and discretionary further advances purchased during the quarter.
                    This section also reconciles the outstanding assets back to the outstanding notes. 100% notes were
                    raised against PSF1’s assets.

                    b. “ Principal Cash” -The issuer uses the following to redeem the notes or to purchase new assets :
                             Scheduled monthly principal repayments received fro m borro wers representing repayment of
                             the loans (as opposed to interest costs and fees associated with the loans).
                             Proceeds of realisation of security on default - fro m the sale of the property, fro m related
                             security : life policies, mortgage indemnity claims.
                             Repurchase of mortgage loans by PPF.
                             Replenish ments to the principal deficiency ledger.
                             Pre closing arrears collected in the period.

                    less

                                              any discretionary further advances made in the collection period funded out of principal cash.
                                              any mandatory further advances made in the collect ion period funded out of principal cash.

                    equals the repayment to note holders, or the amount available to purchase new assets in the next
                    Collection Period. As PSF1 is a substituting transacti on, l oans can be purchased by PS F1 until
                    November 2008, subject to the criteria determined by the rating agencies.

                    c. “ Revenue Income” -The issuer meets its funding costs and operating expenses from the following
                            Interest from the borrowers’ monthly pay ments.
                            Early pre -payment fees.
                            Accrued interest not sold to the issuer.
                            Investment income.
                                                                                                                                                                                                                                       30
                                  Glossary of Terms
         Swap receipts.
         Proceeds from the realisation of security in default relat ing to missed interest and fees.
         Salvage receipts.
         Drawings made on the subordinated loan to establish the shortfall fund.

equals the revenue ledger balance on the interest payment date.

For transparency on the investor reports, the revenue ledger balance has been broken down into the
following categories :

         Quarterly Interest Income : this relates to the quarterly interest generated fro m the borrowers ’
         monthly payments.

         Redemption Income : this relates to early prepayment fees at the redemption of the mo rtgage
         plus if applicable, any arrears of interest and fees.

         Investment Income : this relates to the proceeds from the placement of cash during the
         interest period with the appropriate rating, deposited to the issuer’s transaction account and
         credited to the revenue ledger.

         First Loss Fund Drawings : to the extent that the issuer has insufficient revenue to meet all of
         its senior liab ilities on each interest payment date, a drawing is made on the FLF and credited
         to the revenue ledger to run through the priority of payments.

         Drawings on the Subordinated Loan for interest shortfalls : this relates to the funds drawn
         on the subordinated loan as a result of the failu re of the minimu m mortgage rate test. The
         weighted average interest rate on each portfolio (along with investment income, redemption
         fees) must exceed GBP Libor + 4.5%. To the extent that each issuer does not achieve this
         threshold, a cash drawing is made on the subordinated loan to make up for the resultant
         shortfall. In the underlying documentation, the drawing made on the subordinated loan is
         credited to the shortfall ledger, then on each interest payment date, is credited to the revenue
         ledger, however for the purposes of the investor reports , the drawing on the subordinated loan
         is shown as a credit to the revenue ledger on each interest payment date to then run through
         the priority of pay ments.

d. “ Accrued Arrears Not Sold to the Issuer”
Arrears and accrued interest on mortgages less than or equal to one month at the closing date and on
each substitution date were retained by PPF and not the issuer. Cash received on those mortgages pay
off the accrued interest to PPF at any time during an interest period. This is detailed in part 1 of the
section titled “revenue payments made or accrued fro m revenue income” on page 2 o f the investor
report. This cash is not available to meet the issuer’s funding costs and operating expenses.

e. “ Pre Closing Arrears”
Arrears and accrued interest on assets greater than one months arrears were purchase d by these PSF1
on the closing dates or on any substitution date. Any cash received on those assets in a period are firstly
applied to the pre closing arrears. The effect of the issuer purchasing the pre closing arrears is diverting
the revenue derived fro m pre closing arrears accounts fro m revenue to principal, fo rming part of the
available redemption funds to redeem notes on an interest payment date, or to purchase new assets.

f. “ Purpose of t he PFPLC Subordinated Loan”
Establishing the first loss fund, funding discretionary and mandatory further advances in situations
where the issuer has insufficient principal cash during an interest period and establishing the shortfall
fund where the minimu m mo rtgage rate hasn't been achieved. In addition, to cance l out a debit balance
on the principal deficiency ledger and to bring the first loss fund to the required level and the funding
of swap termination fees to the extent revenue cash is insufficient during an interest period.

g. “Revenue payments made or accrued from revenue income”

These consist of the following funding and operating costs and expenses on each interest payment date,
made in GBP sterling.

    Trustee fee
    These relate to the accrual for the relevant period in respect of the trustee fee.



                                                                                                         31
     Glossary of Terms
Senior Administration Fee to PFPLC / Out of pocket expenses / Substitute Administrator
Commitment Fee
For PSF1, the “senior” admin istration fee is calculated at 0.15% per annum, based on the asset
balance on the preceding principal determination date.
The substitute admin istrator’s commit ment fees are calculated at 0.004% per annum, based on the
asset balance on the preceding principal determination date.

Payments to Swap Counterparties
These relate to swap payments paid to the swap counterparties where the quarterly GBP Libor is
less than the swap rate in the underlying swap confirmations in respect of the fixed rate loans in
the portfolio. PSF1 has not currently entered into a swap, however, when the value of the fixed rate
mortgages in PSF1 reaches 4% of the portfolio, PSF1 will enter into hedging arrangements with
Barclays Bank PLC as the swap counterparty.

Note Interest
These relate to the quarterly note interest payable to each class of note holders on each interest
payment date, where all of the payments are referenced to (a) three month GBP Libor plus the
agreed note margin and (b) the GBP note value at the previous quarter end. All payments made to
the GBP note holders are made in GBP sterling on each interest payment date. For example, the
Class A note interest is calculated by multiply ing the Class A note balance at the previous interest
payment date by the current interest rate (three month Libor + margin ), div iding this by 365, then
mu ltip lying by the number of days in the current interest p eriod.

For PSF1, the Class A note interest on the August 2010 interest payment date equalled:

£100,609,324.20 (Class A GBP note balance) x 1.09625% (GBP Libor + margin) / 365 x 91
(number of days in the interest period) = £274,977.00 payment to PSF1’s principal paying agent
(Citibank) for onward pay ment to the Class A note holders .

Third Party payments for Corporation Tax and VAT
An accrual is made for VAT and corporation tax pay ments in the quarter. In addit ion, an accrual in
respect of third party items such as audit and directors fees are made.

Principal Deficiency Ledger Replenishment
To the extent that a principal balance remains outstanding on a PSF1 asset on the earlier of (i)
loans falling into the >12 months arrears bucket and (ii) co mplet ion of the enforcement procedures,
such balances are booked to the issuer's principal deficiency ledger. Provided there is excess
revenue available on an interest payment date after making payments in the order of priority, the
administrator will cancel out such balance(s) to the principal deficiency ledger by diverting excess
revenue to principal or by drawing on the subordinated loan, to form part of the available
redemption funds to redeem the notes on the next succeeding interest payment date, or to purchase
new assets. In situations where a drawing has been made to replenish the principal deficiency
ledger, this is credited directly to the principal deficiency ledger and the principal ledger and does
not flow through the priority of pay ments.

First Loss Fund Replenishment
To the extent that the issuer has insufficient revenue to meet all of its senior liab ilities on each
interest payment date, a drawing is made on the first loss fund and credited to the revenue ledger to
run through the priority of payments. As the first loss fund has to be at the required level in order
for the issuer to grant further advances in the next quarter, the first loss fund is replenished back to
its required level by drawing on the PFPCL subordinated loan, or capturing through excess spread
in the priority of pay ments . In situations where a drawing has been made in the first loss fund to
meet the issuer’s senior liabilit ies, and is replenished to its required level by drawing on the
subordinated loan, this is credited directly to the first loss fund ledger and does not flo w through
the priority of pay ments.

Junior Administration Fee to PFPLC
For PSF1 the “junior” admin istration fee is calculated at 0.15% per annum based on the asset
balance on the preceding principal determination date.




                                                                                                     32
Glossary of Terms
                   Surplus Income to the Issuer
                   To the extent that an excess balance remains on the revenue ledger after making all pay ments in
                   the order of priority on an interest payment date, the issuer is entitled to receive this balance to pay
                   or provide for payment of any dividends or other distributions to be made by the issuer, such as
                   interest on the fee letter, payment of PFPLC subordinated loan interest, repayment of the
                   subordinated loan and management charges to PFPLC. For the purposes of the invest or reports,
                   this is shown as a combined number.


                 Principal/Revenue Analysis                                                                   PDD =   30/07/2010            Principal (£'000)             Revenue (£'000)
                 Opening cash balance                                                                                                                          0                         0
                 Total principal cash received this period from assets                                                                                     5,946
                 Quarterly Interest Income                                                                                                                                             3,931
                 Redemption Income                                                                                                                                                       303
                 Investment Income                                                                                                                                                        24
                 Drawing on Sub Loan for Interest Shortfalls
                 Initial income for distribution this period                                                                                               5,946                       4,258
                 Revenue adjustment for payment of Accrued Arrears and Interest Sold at closing                                                                0                           0
                 Final income for distribution this period                                                                                                 5,946                       4,258
                 Revenue payments made or accrued from Revenue Income:
            1    Accrued Arrears and Interest not Sold to Issuer                                                                                                                            0
            2    Trustee Fee                                                                                                                                                               -2
            3    Senior Administrator Fee/ Out of Pocket Expenses/ Substitute Administrators Commitment Fee                                                                              -153
          4(i)   Payments to Swap Counterparty                                                                                                                                              0
         4(ii)   A Note Interest                                                                                                                                                         -275
            5    B Note Interest                                                                                                                                                         -230
            6    C Note Interest                                                                                                                                                         -181
            7    Third Party payments for Corporation Tax and VAT                                                                                                                          -7
            8    PDL Replenishment                                                                                                                         1,610                       -1,610
            9    First Loss Fund Replenishment                                                                                                                                              0
           10    Termination Fees to Swap Provider                                                                                                                                          0
           11    Cap/Swap Retention fund                                                                                                                                                    0
           12    Administrator Fee (Junior)                                                                                                                                               -64
           13    Surplus income to the Issuer                                                                                                                                          -1,736




      (3) AVAILABLE CREDIT E NHA NCEMENT SECTION – PAGE 3

Available Credit Enhancement

First Loss Fund Analysis
First Loss Fund at Closing                                                                                                                                                13,500
Last Quarter closing First Loss Fund balance                                                                                                                              13,500
Replenishments                                                                                                                                                                 0
Drawing this quarter                                                                                                                                                           0
Drawing used to pay                                                                                                                                                            0
A Note Interest                                                                                                                                                                0
B Note Interest                                                                                                                                                                0
C Note Interest                                                                                                                                                                0
PDL Replenishment                                                                                                                                                              0
Closing First Loss Fund Balance                                                                                                                                           13,500

Spread Trap
Requirement                                                                                                                                                        n/a
Build up - prior periods                                                                                                                                           n/a
Build up - this period                                                                                                                                             n/a
Requirement Outstanding                                                                                                                                            n/a

Principal Deficiency Ledger (PDL)
Opening PDL Balance                                                                                                                                                            0
Movement into the > 12 Month Arrears Band                                                                                                                                    526
Write off of loans                                                                                                                                                         1,084
Total PDL balance                                                                                                                                                          1,610
PDL replenishment from excess Revenue income                                                                                                                              -1,610
Closing PDL Balance                                                                                                                                                            0


Over Collateralisation

Current Principal Balance, Outstanding Accrued Arrears and Principal Cash (£'000)                                                                                        162,109
Outstanding Note Principal (£'000)                                                                                                                                       162,109


Mandatory and Discretionary Further Advances (FA's)                                                                                DFA's               MFA's               Total
Total FA's permitted                                                                                                               15,000               5,000             15,000
FA's made to last quarter                                                                                                           7,487                   0              7,487
FA's made this quarter                                                                                                                 56                   0                 56
Total FA's made to date                                                                                                             7,543                   0              7,543
Remaining permitted FA's                                                                                                            7,457                   0


Cash Flow Interest Coverage
Cover Ratio for Class A Notes (at last Interest Payment Date)                                                                                                              14.92   x
Cover Ratio for Class A Notes (cumulative)                                                                                                                                  2.87   x
Cover Ratio for Class B Notes (at last Interest Payment Date)                                                                                                              16.64   x
Cover Ratio for Class B Notes (cumulative)                                                                                                                                  8.52   x
Cover Ratio for Class C Notes (at last Interest Payment Date)                                                                                                              19.88   x
Cover Ratio for Class C Notes (cumulative)                                                                                                                                 11.07   x




PSF1 INVESTOR REPORT QUARTER ENDING JULY 2010




      a. “ First Loss Fund”
      A % of the closing date’s GBP equivalent note balance (4.5%) agreed with the rating agency / agencies
      on the closing date is deposited as cash to the issuer's transaction bank account from the PFPLC
      subordinated loan.

      To the extent that the issuer's revenue resources are insufficient on an interest payment date to pay its
      senior liabilities, a drawing is made on the first loss fund to enable the issuer to make such payments.
      Drawings on the first loss fund are allowed to bring the PDL to nil.

      To the extent that the issuer has sufficient revenue available in the next interest period, the issuer will
      use the surplus revenue to bring the first loss fund back to its required amount, or draw on the
      subordinated loan to bring it back to the required level.




                                                                                                                                                                                          33
                    Glossary of Terms
b. “ Spread Trap”
The spread trap is calculated as a % of the current balance agreed with the rating agency / agencie s on
the closing date.

To the extent that there is excess revenue after making payments in the order of priority on an interest
payment date, the spread trap is built up from excess revenue and diverted to principal to form part of
the available redemption funds in redeeming the notes in the next succeeding period in respect of a
non-substituting transaction. 100% notes were issued against the assets for PSF1.

The spread trap is not applicable to PSF1.

c. “ Principal Deficiency Ledger”
To the extent that a principal balance remains outstanding on a PSF1 asset on the earlier of (i) loans
falling into the >12 months arrears bucket and (ii) co mp letion of the enforcement procedures, such
balances are booked to the issuer's principal deficiency ledger. Provided there is excess revenue
available on an interest payment date after making payments in the order of priority, the administrator
will cancel out such balance(s) to the principal deficiency ledger by (i) divert ing excess revenue to
principal or (ii) drawing on the subordinated loan, to form part of the available redemption funds to
redeem the notes on the next s ucceeding interest payment date, or to purchase new assets. In situations
where a drawing has been made to replenish the principal deficiency ledger, this is credited directly to
the principal deficiency ledger and the principal ledger and does not flo w through the priority of
payments.

d. “ Overcollateralisation”
The result of deducting the value of the assets less the value of the notes e quals the over
collateralisation. For PSF1 100% notes were issued against the assets.

e. “ Mandatory Further Advances”
Financed out of principal cash received during an interest period, a further advance made to borrowers
to fund deferred interest or the release of an advance retained as part of the original mortgage after
complet ing certain works to the property. Mandatory further advances are deducted from the available
redemption funds to arrive at the note repayment to the note holders.

f. “ Discretionary Furt her Advance”
Non mandatory further advances, financed out of principal cash provided that the principal deficiency
ledger is nil at the previous interest payment date and certain arrears tests are met. Discretionary further
advances form part of the available redemption funds calculation in determin ing the note repayment to
the note holders.

g. “ Cash flow coverage numbers”
Cash flo w coverage ratios are calculated as the ratio of revenue cash received during the quarter to note
interest payments, in each case net of payments due in priority to the respective class of note. If
revenue cash is insufficient to pay any interest on a class of note then a zero will appear in the report.




                                                                                                          34
     Glossary of Terms
           (4) COLLATERAL LEVEL DATA SECTION – PA GE 4

Collateral Level Data                                                                                                                                            30-Jul-10

Original Weighted Average Yield                                                                                                                                    9.46%
Original Weighted Average Note Coupon                                                                                                                              5.23%
Original Spread                                                                                                                                                    4.23%
Current Weighted Average Yield                                                                                                                                     9.53%
Current Weighted Average Note Coupon                                                                                                                               1.62%
Current Spread                                                                                                                                                     7.91%
Total Income as a % of the Mortgages                                                                                                                               2.51%
Stated Maturity - Class A Notes                                                                                                                                  15/11/2035
Stated Maturity - Class B Notes                                                                                                                                  15/11/2035
Stated Maturity - Class C Notes                                                                                                                                  15/11/2035
Original Weighted Average Maturity                                                                                                                                  15.78        years
Current Weighted Average Maturity                                                                                                                                   13.97        years
Quarterly Prepayment Rate                                                                                                                                          3.51%
Life Time Prepayment Rate                                                                                                                                         29.90%

Delinquency Status                                                                                                                                   No.        £'000 Value
Enforcements in Progress                                                                                                                             894           24,992
Properties repossessed by Paragon                                                                                                                     8             255
Aggregate Principal Balance of Repurchased Loans                                                                                                                      0
Aggregate Balance of Discretionary Further Advances in the period                                                                                                    56
Principal Losses
Agg Loan Principal Losses (during related Collection Period)                                                                                                        1,610
Cumulative Principal Losses (since closing date)                                                                                                                   22,631
Cumulative Recoveries                                                                                                                                               5,995
Possession Properties Sold
Properties Sold by Mortgagee                                                                                                                                         9
Average Number of months in Arrears @ Redemption date                                                                                                              12.37
Average months between Possession & Redemption                                                                                                                     4.38

                                                                                                                                   http://www.paragon-group.co.uk
FOR ADDITIONAL INFORMATION ON THE UNDERLYING ASSETS, PLEASE REFER TO THE "POOL TABLES" AND "SUMMARY" SECTIONS POSTED ON THE PARAGON WEBSITE

Delinquency Summary                                                                                                               No.                 %        £'000 Principal       %
Performing                                                                                                                                5,768       86.58%               137,117 84.58%
>1<=2 Months                                                                                                                                283        4.25%                 7,633   4.71%
>2<=3 Months                                                                                                                                163        2.45%                 4,740   2.92%
>3<=4 Months                                                                                                                                 90        1.35%                 2,388   1.47%
>4<=5 Months                                                                                                                                 82        1.23%                 2,226   1.37%
>5<=6 Months                                                                                                                                 63        0.95%                 1,839   1.13%
>6<=9 Months                                                                                                                                132        1.98%                 4,075   2.51%
>9<=12 Months                                                                                                                                81        1.22%                 2,091   1.29%
>12 Months                                                                                                                                    0        0.00%                     0   0.00%
Total Outstanding Current Principal Balance                                                                                               6,662      100.00%               162,109 100.00%

Interest Received Versus Interest Due                                                                                                                105.37%

Contact Name/Address                                                                            Tel.           E-mail

John Harvey, St. Catherines Court, Herbert Road, Solihull, West Midlands, B91 3QE       +44 (0) 121 712 3894   john.harvey@paragon-group.co.uk
Andrew Kitching, St. Catherines Court, Herbert Road, Solihull, West Midlands, B91 3QE   +44 (0) 121 712 3896   andrew.kitching@paragon-group.co.uk
Jimmy Giles, St. Catherines Court, Herbert Road, Solihull, West Midlands, B91 3QE       +44 (0) 121 712 2315   jimmy.giles@paragon-group.co.uk

PSF1 INVESTOR REPORT QUARTER ENDING JULY 2010




           a. “ Original Weighted Average Yield”
           The weighted average interest rate charged on the mortgages at the closing date of the transaction,
           weighted by reference to the customer’s principal balance.

           b. “ Original Weighted Note Coupon”
           The weighted average note interest rate charged to the issuer at the closing date of the transaction,
           calculated on a weighted average basis by reference to the GBP equivalent note value on the closing
           date.

           c. “ Original Spread”
            The result of deducting the weighted average interest rate from the weighted average funding margin.

           d. “ Current Weighted Average Yield”
           The weighted average interest rate charged on the mortgages at the relevant quarter end, weighted by
           reference to the customer’s principal balance.

           e. “ C urrent Weighted Note Coupon”
           The weighted average interest rate charged to the issuer at the start of the quarter, calculated on a
           weighted average basis by reference to the GBP equivalent note value on the preceding interest
           payment date.

           f. “ Current Spread”
           The result of deducting the current weighted average interest rate from the current weighted funding
           margin.

           g. “ Total income as a % of the assets”
           This measures the total revenue generated in the period as a percentage of the asset balance at the
           previous quarter end.

           h. “ Stated Maturity”
           The interest payment date following the assets latest maturity.

           i. “ Originated Weighted Average Maturity”
           The weighted average remaining term of the assets at the closing date, calculated by reference to the
           remain ing term, and weighted against the customer’s principal balance.

           j. “ Current Weighted Average Maturity”
           The weighted average remain ing term of the assets at the relevant quarter end, calculated by reference
           to the remaining term, and weighted against the customer’s principal balance.



                                                                                                                                                                                             35
                         Glossary of Terms
k(i). “ Quarterly Prepayment Rate”
The quarterly prepayment rate calculated by analysing the redemptions and scheduled repayments and
then dividing the result by the closing principal balance of the assets at the previous quarter end.

(ii). “ Lifetime Prepayment Rate”
The lifet ime weighted average prepayment since the closing date using the following formula and
example:
1 - ( (1- a1) x (1 - a2) x (1 - a3) .......(1- an)) ^ (4 / n)

Where:
a1 = redemption rate for quarter 1
a2 = redemption rate for quarter 2
a3 = redemption rate for quarter 3
an = redemption rate for quarter current

n = no of quarters expired including current quarter

^ = to the power

For examp le, in the first three quarterly redemption rates were seen in a deal: 3.67%, 5.77% and 4.51%

The life t ime redemption rate is calcu lated as:

1 - ((1 - 3.67%) x (1 - 5.77%) x (1 - 4.51%)) ^ 4/ 3

1 - ((0.9633) x (0.9423) x (0.9549)) ^ 4/3

1 - 0.8668 ^ 1.333

1.1736

17.36%

“ Delinquency Status”
l(i). " E nforcements i n progress" : assets where the administrator has commenced or has issued
proceedings against the borrowers in breach of their mortgage conditions at the relevant quarter end.

(ii). " E nforcements Completed" : assets which have been repossessed by Paragon Finance PLC as
the admin istrator await ing the sale of the assets at the relevant quarter end.

     Delinquency Status                                                       No.         £'000 Value
     Enforcements in Progress                                                 894            24,992
     Properties repossessed by Paragon                                         8              255

m. " Aggregate Principal Balance of Repurchased Loans" loans repurchased by PPF fro m the issuer
caused by a breach of the security warranties at the relevant quarter end.

n. “ Aggregate Balance of Substituted Loans”
Assets purchased by the Issuer fro m the use of the pre funding reserve on the closing date and assets
purchased by the issuer to November 2008.

o. “ Recoveries”
After the sale of repossessed properties, borrowers are jointly and severally liab le for any outstanding
loan balance and to the extent that a balance remains outstanding after completion of the enforcement
procedures, PFPLC as the adminis trator will pursue borrowers for such balances. To the extent that
further cash is received from borrowers after PFPLC have written off such loans, the cash is credited to
the revenue ledger to run through the priority of pay ments.

p. “Principal Losses”
This relates to any losses made on the disposal of a property following the first mortgagees or the
administrator’s enforcement procedures at the relevant quarter end. In addition, the cu mulative losses
are also reported.



                                                                                                        36
     Glossary of Terms
q. “Possession Properties Sold”

     Possession Properties Sold
     Properties Sold by Mortgagee                                                                    9
     Average Number of months in Arrears @ Redemption date                                         12.37
     Average months between Possession & Redemption                                                 4.38


           Possession properties sold by the admin istrator.
           The average number of months in arrears at the sale date relates to the number of missed
           payments at the property sale date.
           The number of days between the possession to sale measures the time period involved in
           disposing of the property.

r. "Delinquency summary"

"arrears" = missed payments

Performing - assets that are less that or equal to one month in arrears (i.e. missed payments).
>1<= 2 months – mortgages that are greater than one in arrears, less than or equal to two                  months
arrears.
>2 <= 3 months – assets that are greater than two months arrears, less than or equal to three              months
arrears.
>3 <= 4 months – assets that are greater than three months arrears, less than or equal to four             months
arrears.
>4 <=5 months – assets that are greater than four months arrears, less than or equal to five               months
arrears.
>5 <=6 months – assets that are greater than five months arrears, less than or equal to six                months
arrears.
>6 <=12 months – assets that are greater than six months arrears, less than or equal to twelve             months
arrears.
>12 months - assets that are greater than twelve months in arrears.

The arrears bandings are calculated on payments expected, minus payments received, divided by the
monthly payments to put the loan into the relevant arrears band. The arrears band is then linked to the
customer’s outstanding principal balance.

Example :

           Payments expected : £600
           Payments received : NIL
           Monthly payment : £100
           Arrears Band : 6 months

Fro m here, the arrears band is then linked into the customer’s outstanding principal balance.

    Delinquency Summary                                          No.            %        £'000 Principal       %
    Performing                                                         5,768    86.58%               137,117 84.58%
    >1<=2 Months                                                         283     4.25%                 7,633 4.71%
    >2<=3 Months                                                         163     2.45%                 4,740 2.92%
    >3<=4 Months                                                          90     1.35%                 2,388 1.47%
    >4<=5 Months                                                          82     1.23%                 2,226 1.37%
    >5<=6 Months                                                          63     0.95%                 1,839 1.13%
    >6<=9 Months                                                         132     1.98%                 4,075 2.51%
    >9<=12 Months                                                         81     1.22%                 2,091 1.29%
    >12 Months                                                             0     0.00%                     0 0.00%
    Total Outstanding Current Principal Balance                        6,662   100.00%               162,109 100.00%




                                                                                                                  37
     Glossary of Terms
(5) STR UCTURAL FEATURE S

a. “First Loss Fund arrears triggers”
The first loss fund credit enhancement levels are dependent on the asset performance during th e life of
the transaction. To the extent that the balance of mortgages greater than three months arrears equals
10% of the total current balance on a principal determination date, the first loss fund increases to:

    PSF1, fro m 4.50% to 5.30% of the GBP equivalent closing note balance.

Should the arrears hit the 10% level in one quarter and then imp rove in the next quarter falling below
the 10% trigger, the credit enhancement remains at the higher level, through the capture of excess
spread or drawing on the subordinated loan.

b. “Substitution of further assets”
PSF1 features a four-year substitution period from 15th December 2004 to 15th November 2008 to
purchase further mortgages from PPF.

On each principal determination date, the administrator will analyse the principal ledger balance
(inclusive of any credits made to the PDL) to determine the actual value o f mo rtgages that PSF1 can
purchase fro m PPF during the next succeeding collection period (up until the next principal
determination date).

PSF1 has the following substitution criteria:

         No balance on the principal deficiency ledger.
         Fully funded first loss fund.
         £15,000,000 limit on arrears mortgages (greater than 1 month’s arrears).
         £5,000,000 limit on retention releases.
         £15,000,000 limit on further advance and retention releases.
         Meeting substantially the same lending criteria as that of the closing date.
         Substitution would not result in an adverse change to the current ratings of the notes.
         Governed by English, Scottish and Northern Irish law.
         Minimu m marg in requirement of 4.5% to be met.
         No more than 10% of assets to be greater than 3 months in arrears. (or any such percentage
         that may be agreed with the rating agencies fro m t ime to time)
          Rat io of interest due from borrowers to interest received from borrowers is 95% or mo re. (or
         any such percentage that may be agreed with the rating agencies fro m time to time)
         Passing the weighted average foreclosure frequency and loss severity tests within a limit of
         0.25% of the closing date’s WAFFS and WALS (or any such percentage that may be agreed
         with the rating agencies fro m time to time).
         Loans sold into PSF1 must have an original final maturity date of 25 years. Mortgages sold
         into PSF1 must not exceed 30th November 2033.




                                                                                                     38
    Glossary of Terms
(6) QUARTERLY POOL TABLES

The pool tables contains information on the underlying assets as at each quarter end. The overview
section within the pool tables are as follo ws:


Second Charged Residential Mortgages Originated by : PARAGON PERSONAL FINANCE LIMITED
Key Features

                                                Weighted Average             Minimum     Maximum
Loan to Value Ratio                                                   83.37%       2.14%      136.77%
Nationwide Index Loan to Value                                        84.44%       2.17%      179.85%
Halifax Index Loan to Value                                           89.07%       2.21%      182.79%
1st Mortgagee Loan to Value                                           60.12%       0.00%      110.69%
Current Principal Balance                       £                  24,333.42 £      9.39 £ 139,922.80
Seasoning (months)                                                     47.69        0.10       129.61
Annual yield                                                           9.53%       2.21%       16.93%
Remaining term (years)                                                 13.97        0.08        23.67



    Loan to Value Ratio
    The weighted average LTV of the assets at the relevant quarter end. This is calculated by dividing
    the current valuation by the principal balance (including the 1st mortgagee’s principal balance) of
    the asset at the quarter end and weighting this against the customer’s principal balance (including
    the 1st mortgagee’s principal balance). Valuations are calculated at the mortgage origination date,
    and are updated when a discretionary further advance is released to the customer.

    Nationwide Index Loan to Value
    The weighted average LTV o f the assets based on the Nationwide index valuation at the previous
    quarter end. These are updated quarterly, at the end of March, June, September and December .

    Halifax Index Loan to Value
    The weighted average LTV of the assets based on the Halifax index valuation at the previous
    quarter end. These are updated quarterly, at the end of March, June, September and December.

    1 st Mortgagee Loan to Value
    The weighted average LTV of the first mo rtgagee at the relevant quarter end, which is weighted by
    reference to the customer’s first charged outstanding balance. This is calculated by dividing the
    current valuation by the principal balance of the first mo rtgagee at the relevant quarter end.

    Current Pri ncipal Balance
    The weighted average principal balance is calculated by divid ing the total principal balances by the
    number of loans at the relevant quarter end.

    Seasoning (months)
    The weighted average period (in months) that assets have been running since year of orig ination, at
    the relevant quarter end.

    Annual yield
    The weighted average interest rate charged on the assets at the relevant quarter end.

    Remaining term (years)
    The weighted average remain ing term (in years) on the assets at the relevant quarter end.




                                                                                                      39
    Glossary of Terms
The detailed info rmation of the underlying assets is as follows:

a.       “Distribution by loan to value ratios”
The distribution of current principal balances by loan to value ratios. This is calculated by dividing the
current valuation by the principal balance of the asset at the relevant quarter end and weighting this
against the customer’s principal balance. Valuations are calculated at the mortgage origination date,
and are updated when a discretionary further advance is released to the customer.

DISTRIBUTION BY LOAN TO VALUE RATIOS

                                            Current Principal Balance     %        Number           %

> 0 < = 25                                                 1,444,032.81    0.89%             150     2.25%
> 25 < = 50                                               11,356,187.19    7.01%             701    10.52%
> 50 < = 55                                                4,492,567.86    2.77%             248     3.72%
> 55 < = 60                                                6,346,054.35    3.91%             299     4.49%
> 60 < = 65                                                7,204,529.08    4.44%             323     4.85%
> 65 < = 70                                                8,097,387.11    5.00%             383     5.75%
> 70 < = 75                                               12,840,704.66    7.92%             527     7.91%
> 75 < = 80                                               15,462,036.64    9.54%             612     9.19%
> 80 < = 85                                               13,678,263.29    8.44%             555     8.33%
> 85 < = 90                                               14,058,880.49    8.67%             608     9.13%
> 90 < = 95                                               17,116,630.83   10.56%             695    10.43%
> 95 < = 100                                              17,163,823.53   10.59%             615     9.23%
> 100                                                     32,848,139.51   20.26%             946    14.20%

                                                        162,109,237.35                      6,662




b.       “Distribution by loan to value ratios – Nationwide Index”
The distribution of current principal balances by loan to value ratios based on the Nationwide index
valuation. These are updated quarterly, at the end of March, June, September and December.

DISTRIBUTION BY LOAN TO VALUE RATIOS- NATIONWIDE INDEX AS AT JUNE 2010

                                            Current Principal Balance     %        Number           %

> 0 < = 25                                                 1,593,402.12    0.98%              179    2.69%
> 25 < = 50                                               12,347,147.02    7.62%              786   11.80%
> 50 < = 55                                                4,956,541.07    3.06%              251    3.77%
> 55 < = 60                                                6,108,509.95    3.77%              297    4.46%
> 60 < = 65                                                6,977,831.05    4.30%              311    4.67%
> 65 < = 70                                                8,639,199.69    5.33%              361    5.42%
> 70 < = 75                                                9,984,263.45    6.16%              417    6.26%
> 75 < = 80                                               13,943,880.90    8.60%              565    8.48%
> 80 < = 85                                               14,635,689.72    9.03%              572    8.59%
> 85 < = 90                                               13,829,310.02    8.53%              530    7.96%
> 90 < = 95                                               13,534,610.78    8.35%              544    8.17%
> 95 < = 100                                              14,755,253.52    9.10%              551    8.27%
> 100                                                     40,803,598.06   25.17%            1,298   19.48%

                                                        162,109,237.35                      6,662



c.       “Distribution by loan to value ratios – Halifax Index”
The distribution of current principal balances by loan to value ratios based on the Halifax index
valuation. These are updated quarterly, at the end of March, June, September and December.

DISTRIBUTION BY LOAN TO VALUE RATIOS- HALIFAX INDEX AS AT JUNE 2010

                                            Current Principal Balance     %        Number           %

> 0 < = 25                                                 1,419,222.62    0.88%              160    2.40%
> 25 < = 50                                               10,515,881.97    6.49%              698   10.48%
> 50 < = 55                                                4,872,895.27    3.01%              252    3.78%
> 55 < = 60                                                5,098,979.78    3.15%              247    3.71%
> 60 < = 65                                                5,790,508.54    3.57%              279    4.19%
> 65 < = 70                                                6,867,235.51    4.24%              298    4.47%
> 70 < = 75                                                8,426,750.99    5.20%              349    5.24%
> 75 < = 80                                                9,469,608.86    5.84%              397    5.96%
> 80 < = 85                                               14,000,304.00    8.64%              554    8.32%
> 85 < = 90                                               14,166,855.28    8.74%              555    8.33%
> 90 < = 95                                               13,152,089.92    8.11%              513    7.70%
> 95 < = 100                                              13,418,625.85    8.28%              505    7.58%
> 100                                                     54,910,278.76   33.87%            1,855   27.84%

                                                        162,109,237.35                      6,662




                                                                                                        40
     Glossary of Terms
d)       “Distribution by current principal balance outstanding”
The distribution of assets by current principal balances at the relevant quarter end.

DISTRIBUTION BY CURRENT PRINCIPAL BALANCE OUTSTANDING

                                            Current Principal Balance     %         Number           %

0 to 15,000                                               18,821,148.86    11.61%            2,205   33.10%
15,000.01 to 30,000                                       53,479,419.44    32.99%            2,396   35.97%
30,000.01 to 45,000                                       47,968,340.38    29.59%            1,314   19.72%
45,000.01 to 60,000                                       29,026,031.82    17.91%              571    8.57%
60,000.01 to 70,000                                        6,784,400.83     4.19%              106    1.59%
70,000.01 to 80,000                                        2,909,427.60     1.79%               39    0.59%
80,000.01 to 90,000                                        1,113,897.29     0.69%               13    0.20%
90,000.01 to 100,000                                         461,685.26     0.28%                5    0.08%
more than 100,000                                          1,544,885.87     0.95%               13    0.20%

                                                        162,109,237.35                       6,662



e)       “Distribution by annual yield to Issuer”
The distribution of assets by interest rate charged to borrowers at the relevant quarter end.

DISTRIBUTION BY ANNUAL YIELD TO ISSUER

                                            Current Principal Balance     %         Number           %

Under 7.00%                                                8,299,541.47     5.12%              253    3.80%
7.00% to 7.99%                                            18,778,189.39    11.58%              555    8.33%
8.00% to 8.99%                                            31,654,897.84    19.53%              962   14.44%
9.00% to 9.99%                                            49,452,915.70    30.51%            2,180   32.72%
10.00% to 10.99%                                          26,847,853.91    16.56%            1,258   18.88%
11.00% to 11.99%                                          18,620,781.70    11.49%              835   12.53%
12.00% to 12.99%                                           5,520,393.48     3.41%              410    6.15%
13.00% to 13.99%                                           1,414,374.86     0.87%               93    1.40%
14.00% to 14.99%                                           1,430,781.41     0.88%              109    1.64%
15.00% and over                                               89,507.59     0.06%                7    0.11%

                                                        162,109,237.35                       6,662



f)       “Distribution by remaining term”
The distribution of assets by remaining term (in years) at the relevant quarter end.

DISTRIBUTION BY REMAINING TERM

                                            Current Principal Balance     %         Number           %

>0<5                                                      11,418,356.94     7.04%            1,214   18.22%
>= 5 < 10                                                 36,818,702.18    22.71%            1,796   26.96%
>= 10 < 15                                                39,845,545.70    24.58%            1,384   20.77%
>= 15 < 20                                                38,984,088.72    24.05%            1,202   18.04%
>= 20 < 25                                                35,042,543.81    21.62%            1,066   16.00%
>= 25 < 30                                                          -       0.00%              -      0.00%

                                                        162,109,237.35                       6,662




                                                                                                         41
     Glossary of Terms
g)       “Distribution by Geographical regions”
The distribution of assets split by region at the relevant quarter end, calculated by reference to the
property’s post code.

DISTRIBUTION BY GEOGRAPHICAL REGIONS

                                            Current Principal Balance      %        Number            %

North                                                     10,409,308.80     6.42%              433     6.50%
North West                                                18,135,936.10    11.19%              782    11.74%
Yorkshire                                                 13,952,791.57     8.61%              603     9.05%
East Midlands                                             11,278,976.51     6.96%              474     7.11%
West Midlands                                             12,788,880.00     7.89%              549     8.24%
East Anglia                                                6,195,934.99     3.82%              267     4.01%
South East (exc Greater London)                           40,587,714.19    25.04%            1,537    23.07%
South West                                                10,926,702.17     6.74%              411     6.17%
Greater London                                             6,092,600.48     3.76%              227     3.41%
Wales                                                      8,590,536.48     5.30%              373     5.60%
Scotland                                                  14,297,222.72     8.82%              662     9.94%
Nth. Ireland                                               8,852,633.34     5.46%              344     5.16%
Unknown                                                             -       0.00%              -       0.00%

                                                        162,109,237.35                       6,662



h)       “Distribution by Seasoning”
The distribution of assets by year of origination at the relevant quarter end.

DISTRIBUTION BY SEASONING

Year of Origination                         Current Principal Balance      %        Number            %

     1999                                                     74,308.15     0.05%                4     0.06%
     2000                                                    391,580.34     0.24%               60     0.90%
     2001                                                    382,193.35     0.24%               31     0.47%
     2002                                                  1,677,969.84     1.04%               95     1.43%
     2003                                                  4,798,538.01     2.96%              203     3.05%
     2004                                                 17,604,725.77    10.86%              704    10.57%
     2005                                                 24,717,466.17    15.25%              928    13.93%
     2006                                                 36,337,053.88    22.42%            1,338    20.08%
     2007                                                 46,131,383.73    28.46%            1,830    27.47%
     2008                                                 29,994,018.11    18.50%            1,469    22.05%

                                                        162,109,237.35                       6,662



i)       “Number of month in arrears – original pool”
The current principal balances / number of mortgages of PSF1’s orig inal assets from December 2004,
split by arrears bands, resulting in the weighted average number of months in arrears at the relevant
quarter end.

NUMBER OF MONTHS IN ARREARS - ORIGINAL POOL

                                            Current Principal Balance      %        Number            %

<=1 month                                                 23,787,552.94    83.20%            1,300    86.90%
>1 <=2 months                                              1,486,070.92     5.20%                63    4.21%
>2 <=3 months                                                641,163.93     2.24%                30    2.01%
>3 <=4 months                                                362,273.67     1.27%                12    0.80%
>4 <=5 months                                                625,862.60     2.19%                26    1.74%
>5 <=6 months                                                299,174.82     1.05%                13    0.87%
>6 <=9 months                                                806,050.29     2.82%                31    2.07%
>9 <=12 months                                               582,801.99     2.04%                21    1.40%
>12 months                                                          -       0.00%              -       0.00%

                                                          28,590,951.16                      1,496

AVERAGE NUMBER OF MONTHS IN ARREARS FOR ARREARS LOANS                                         4.56




                                                                                                          42
     Glossary of Terms
j)       “Number of months in arrears – substituted loans”
The current principal balances / number of mortgages of substituted assets split by arrears bands,
resulting in the weighted average number of months in arrears at the relevant quarter end.

NUMBER OF MONTHS IN ARREARS - SUBSTITUTED LOANS

                                            Current Principal Balance      %        Number            %

<=1 month                                               113,329,078.91     84.88%            4,468    86.49%
>1 <=2 months                                             6,146,867.08      4.60%              220     4.26%
>2 <=3 months                                             4,099,259.85      3.07%              133     2.57%
>3 <=4 months                                             2,025,487.03      1.52%                78    1.51%
>4 <=5 months                                             1,600,631.06      1.20%                56    1.08%
>5 <=6 months                                             1,540,292.49      1.15%                50    0.97%
>6 <=9 months                                             3,268,885.42      2.45%              101     1.96%
>9 <=12 months                                            1,507,784.35      1.13%                60    1.16%
>12 months                                                         -        0.00%              -       0.00%

                                                        133,518,286.19                       5,166

AVERAGE NUMBER OF MONTHS IN ARREARS FOR ARREARS LOANS                                         4.14


k)       “Product”
The distribution of assets by product type – variable rate and fixed rate at the relevant quarter end.

PRODUCT

                                            Current Principal Balance      %        Number            %

Variable rate                                           161,699,179.75     99.75%            6,643    99.71%
Fixed rate                                                  410,057.60      0.25%               19     0.29%

                                                        162,109,237.35                       6,662


l)       “Payment Protection Insurance”
The distribution of assets by payment protection / no payment protection at the relevant quarter end.

PAYMENT PROTECTION INSURANCE

                                            Current Principal Balance      %        Number            %

With Payment Protection                                   82,798,539.12    51.08%            3,148    47.25%
Without Payment Protection                                79,310,698.23    48.92%            3,514    52.75%

                                                        162,109,237.35                       6,662




The investor reports, pool tables and summary section can all be found on the Parag on website
http://www.paragon-group.co.uk/




                                                                                                          43
     Glossary of Terms
                           CONSUMER FINANCE TRANSACTIONS – PPAF3


                                              (1) SECURITY LEVEL DATA SECTION – PA GE 1


Paragon Personal and Auto Finance (No.3) PLC

This performance report is issued by Paragon Finance PLC for and on behalf of Paragon Personal and Auto Finance (No.3) PLC

N.B. This data fact sheet and its notes can only be a summary of certain features of the bonds and their structure. No representation can be made that the information herein is accurate or complete and no liability is accepted therefor. Reference should be made to the issue
documentation for a full description of the bonds and their structure. This data fact sheet and its notes are for information purposes only and are not intended as an offer or invitation with respect to the purchase or sale of any security. Reliance should not be placed
on the information herein when making any decision whether to buy, hold or sell bonds (or other securities) or for any other purpose.


                                                                                                           http://www.paragon-group.co.uk
FOR FURTHER ASSISTANCE ON THE INVESTOR REPORTS, PLEASE REFER TO THE "INVESTOR TERMS" POSTED ON THE PARAGON WEBSITE

Summary Transaction Features


Name of Issuer                                                                                                                                                                                                                                                                                                                                                                                                          PPAF (No.3) PLC
Asset % at Closing                                                                                                                                                                                                                                                                                        Personal Loans   14.92%     Retail Credit   5.44%   Secured Loans     48.90%     Car Finance       30.74%
Asset % at the Quarter End                                                                                                                                                                                                                                                                                Personal Loans    2.50%     Retail Credit   1.09%   Secured Loans     87.10%     Car Finance        9.31%
Date of Issue                                                                                                                                                                                                                                                                                                                                                                                                               19-May-05
Date of Production                                                                                                                                                                                                                                                                                                                                                                                                           22-Jul-10

Security Level Data

                                                                                                     Class A1 Notes                            Class A2 Notes                            Class B1 Notes                               Class B2 Notes                                 Class C1 Notes       Class C2 Notes             Class D1 Notes            Class D2 Notes
Moody's Rating at Closing                                                                                  Aaa                                       Aaa                                       Aa2                                          Aa2                                            A2                   A2                        Baa2                      Baa2
Standard & Poors Rating at Closing                                                                        AAA                                       AAA                                        AA                                           AA                                             A                    A                         BBB                       BBB
Current Moody's Rating                                                                                     Aaa                                       Aaa                                       Aa2                                          Aa2                                            A2                   A2                        Baa2                      Baa2
Current Standard & Poors Rating                                                                           AAA                                       AAA                                        AA                                           AA                                             A                    A                         BBB                       BBB
ISIN                                                                                                 XS0219226841                              XS0219227492                              XS0219227658                                 XS0219229860                                   XS0219230017        XS0219230447               XS0219230793              XS0219231841
Original Issue Amount ('000)                                                                            £146,000                                 € 259,500                                  £16,000                                      € 35,500                                       £18,000              € 33,000                   £24,500                   € 30,000
Previous Outstanding Note Principal                                                                      £68,911                                 € 122,483                                  £16,000                                      € 35,500                                       £18,000              € 33,000                   £24,500                   € 30,000
Current Outstanding Note Principal                                                                       £60,496                                 € 107,526                                  £16,000                                      € 35,500                                       £18,000              € 33,000                   £24,500                   € 30,000
Original GBP Equivalent Note Principal                                                                  £146,000                                  £178,000                                  £16,000                                      £24,500                                        £18,000              £22,500                    £24,500                   £20,500                                                    £450,000
Previous GBP Equivalent Note Principal                                                                   £68,911                                   £84,015                                  £16,000                                      £24,500                                        £18,000              £22,500                    £24,500                   £20,500                                                    £278,926
Current GBP Equivalent Note Principal                                                                    £60,496                                   £73,756                                  £16,000                                      £24,500                                        £18,000              £22,500                    £24,500                   £20,500                                                    £260,252
Current Pool Factor                                                                                    0.4143582                                 0.4143582                                 1.0000000                                    1.0000000                                      1.0000000            1.0000000                  1.0000000                 1.0000000
Previous Pool Factor                                                                                   0.4719946                                 0.4719946                                 1.0000000                                    1.0000000                                      1.0000000            1.0000000                  1.0000000                 1.0000000
Note Interest Margins                                                                                     44 bp                                     44 bp                                     66 bp                                        66 bp                                         120 bp               114 bp                     190 bp                    180 bp
Current Note Interest Rates                                                                            1.09094%                                  1.08400%                                  1.31094%                                     1.30400%                                       1.85094%             1.78400%                   2.55094%                  2.44400%
Previous Note Interest Rates                                                                           0.83000%                                  0.90400%                                  0.94000%                                     1.01400%                                       1.21000%             1.25400%                   1.56000%                  1.58400%
GBP Note Margin                                                                                           44 bp                                    49.6 bp                                    66 bp                                       73.4 bp                                        120 bp              125.6 bp                    190 bp                   198.2 bp
Current GBP Interest Rates                                                                             1.09094%                                  1.14854%                                  1.31094%                                     1.38424%                                       1.85094%             1.90698%                   2.55094%                  2.63358%                                                     2.19%
Previous GBP Interest Rates                                                                            0.83000%                                  0.85880%                                  0.94000%                                     0.97665%                                       1.21000%             1.23802%                   1.56000%                  1.60132%
Optional Redemption (Call) Dates                                                                       15-Apr-09                                 15-Apr-09                                 15-Apr-09                                    15-Apr-09                                      15-Apr-09            15-Apr-09                  15-Apr-09                 15-Apr-09
Step-up Dates                                                                                          15-Apr-10                                 15-Apr-10                                 15-Apr-10                                    15-Apr-10                                      15-Apr-10            15-Apr-10                  15-Apr-10                 15-Apr-10
Note Step-up Margins                                                                                      44 bp                                     44 bp                                     66 bp                                        66 bp                                         120 bp               114 bp                     190 bp                    180 bp
GBP Step-Up Margins                                                                                       44 bp                                    49.6 bp                                    66 bp                                       73.4 bp                                        120 bp              125.6 bp                    190 bp                   198.2 bp

Class B, C & D Notes as a percentage Class A Notes at issue                                                                                                                                                                                                                                                                                                                                                                  38.89%
Outstanding Class B, C & D Notes as a percentage of Outstanding Class A Notes                                                                                                                                                                                                                                                                                                                                                93.85%
Determination Event for Paying Class B, C & D Notes                                                                                                                                                                                                                                                                                                                                       Class A Notes         =            £99,000
                                                                                                                                                                                                                                                                                                                                                                                        or the IPD falling in April 2010, whichever is the later
Interest Payment Cycle                                                                                                                                                                                                                                                                                                                                                                                                      Quarterly
Interest Payment Date                                                                                                                                                                                                                                                                                                                                                                                                       15-Jul-10
Previous Quarterly Interest Period (No. of Days)                                                                                                                                                                                                                                                                                                                                     90      15-Jan-10                      14-Apr-10
Current Quarterly Interest Period (No. of Days)                                                                                                                                                                                                                                                                                                                                      91     15-Apr-10                       14-Jul-10
Interest Calculated on                                                                                                                                                                                                                                                                                                                                                                                                    ACTUAL/365
Record Date and PDD                                                                                                                                                                                                                                                                                                                                                                                                         01-Jul-10


PPAF3 INVESTOR REPORT QUARTER ENDING JUNE 2010




                           a. “ Asset % at the Quarter End”
                           This equals the % of each of the relevant assets performing loan balance against the total performing
                           loan balance and the cash available to purchase new assets in the next period. PPAF3’s performing
                           loans are defined as loans that are less than or equal to 12 months arrears.

                           Example

                                                                                                   Value of the Car Finance Performing Assets                                                                                                                                                                      £24,232,000
                                                                                                   Total Performing Loans                                                                                                                                                                                          £260,252,000
                                                                                                   Allocated Purchase Funds                                                                                                                                                                                        £NIL
                                                                                                   % of Car Finance Assets                                                                                                                                                                                         9.31%

                           b. “ Pool Factor”
                           Equals on the first day of the interest period, the principal amount ou tstanding on all classes of notes
                           (after deducting any principal repayment due on that day) divided by -:

                                                                                                          Class A1                                         Class A2                                         Class B1                                         Class B2                                 Class C1               Class C2                          Class D1                             Class D2
        Note Denomination                                                                                 £50,000                                          €50,000                                          £50,000                                          €50,000                                  £50,000                €50,000                           £50,000                              €50,000

                           c. “ C urrent GBP Interest Rates”
                           These relate to the GBP interest rates for the reported period i.e. the SPV’s GBP funding margin, wh ich
                           is calculated on a weighted average basis by reference to the GBP equivalent note value on the
                           preceding interest payment date.

                           d. “ Determination Event”
                           Class B, C and D note holders provide credit coverage for the Class A note holders at the closing date.
                           When the Class A note holders are repaid, the coverage increases. On a date when the coverage number
                           doubles the ratio at the closing date Class B, C and D note holders are paid pro rata, ensuring that ratio
                           between class B, C and D notes at the closing date is still maintained.

                           The Class B, C and D note holders are repaid on the later of (i) five years from the closing date and (ii)
                           when Class B, C and D note coverage number doubles the ratio at the closing date and subject to
                           meet ing the first loss fund and the required principal funds tests.




                                                                                                                                                                                                                                                                                                                                                                                                                      44
                                                Glossary of Terms
                           The current position is as follows:

                                            PPAF3 are paying down the Class A Notes only. The Class A, B, C and D Notes will pay down on
                                            a pro rata basis on the later of (a) 15th April 2010 and (b) when the original GBP equivalent of the
                                            deal halves in value, subject to meeting the first loss fund and the required principal funds tests at
                                            each quarter end.

                           e. “ Interest Payment Date”
                           The distribution of interest and principal to the principal paying agent is 15 days following the quarter
                           end (principal determination date).

                           f. “ Record Date”
                           The date on which registered holders of securities are determined for making distributions on the next
                           interest payment date.

                           g. “ Principal Determination Date”
                           The last working day of the quarter end when the adminis trator calculates the principal note repayment
                           and advises the principal paying agent 7 business days later.

                           (2) PORTFOLIO ASSET MOVEMENTS SECTION – PAGE 2

     Portfolio Asset Movements

                                                                                                   At Closing        Last Quarter      This Quarter      Additions this       Repurchases this   Current Principal
                                                                                                                       Balance        Redemptions and      quarter               quarter             Balance
                                                                                                                                        Repayments
     Personal Loans (£'000)                                                                                 67,137           13,380                804                    0                 0                12,576
     Accrued Arrears and Interest Sold to Issuer (£'000)                                                                                                                  0                 0                     0

     Retail Credit Loans (£'000)                                                                            24,470            4,670               496                     0                 0                 4,174
     Accrued Arrears and Interest Sold to Issuer (£'000)                                                                                                                  0                 0

     Secured Loans (£'000)                                                                                 220,072          240,065             10,461                    0                 0               229,604
     Accrued Arrears and Interest Sold to Issuer (£'000)                                                                                                                  0                 0                     0

     Car Finance Loans (£'000)                                                                             138,321           31,289              6,260                    0                 0                25,029
     Accrued Arrears and Interest Sold to Issuer (£'000)                                                                                                                  0                 0

     Total (£'000)                                                                                         450,000          289,404             18,021                    0                 0               271,383

     Credit Enhancement/ Movement into >12 months Arrears                                                        0          -10,478               653                                                       -11,131
     Allocated Purchase Funds                                                                                    0                0                 0                     0                                       0
     Over collateralisation due to replenishment of PDL                                                          0                0                                       0                                       0
     Outstanding Note Principal                                                                            450,000          278,926                 0                                                       260,252

     Issuer Fund Analysis                                                                                                                                                                        Issuer Funds(£'000)
     Cash balance in the Transaction Account at the Determination Date                                                                                                                                       63,506
     Accruals made to the Interest Payment Date plus cash held in the Collection Acounts                                                                                                                         478
     Drawing on the PLF1 Subordinated Loan to meet the Required Princiapl Funds test                                                                                                                               0
     Drawing on the PLF1 Subordinated Loan for Interest Shortfalls                                                                                                                                                 0
     Total Cash for the Period                                                                                                                                                                               63,984

     Payments made from Issuer Funds
 1   Trustee Fee                                                                                                                                                                                                 -2
 2   Senior Administration Fee to PFPLC/Substitute Administrators Commitment Fee                                                                                                                               -460
 3   Payments to swap counterparty                                                                                                                                                                             -592
4a   A1 Note Interest                                                                                                                                                                                          -187
4b   A2 Swap Currency Interest                                                                                                                                                                                 -241
 5   Third Party Payments                                                                                                                                                                                        -7
6a   B1 Note Interest                                                                                                                                                                                           -52
6b   B2 Swap Currency Interest                                                                                                                                                                                  -85
7a   C1 Note Interest                                                                                                                                                                                           -83
7b   C2 Swap Currency Interest                                                                                                                                                                                 -107
8a   D1 Note Interest                                                                                                                                                                                          -156
8b   D2 Swap Currency Interest                                                                                                                                                                                 -134
 9   Required Principal Funds / Available Redemption Funds                                                                                                                                                  -18,674
10   First Loss Fund re-establishments                                                                                                                                                                      -40,500
11   Termination Fees to Swap Provider                                                                                                                                                                            0
12   Junior Administration Fee to PFPLC                                                                                                                                                                        -313
13   Surplus income to the Issuer                                                                                                                                                                            -2,391


     PPAF3 INVESTOR REPORT QUARTER ENDING JUNE 2010




                           a. “ Portfolio Asset Movement”
                           This section details the scheduled principal fro m monthly pay ments and redemption/early settlements
                           and the write off of loans. The “additions” section relates to new assets purchased by the issuer during
                           the quarter and reconciles the outstanding assets back to the outstanding notes. 100% notes were raised
                           against PPAF3’s performing assets.

                           Cred it enhancement is provided by the >12 months arrears loans at the end of the reporting period.

                           In order to reconcile the notes to the assets, the credit enhancement provided by the >12 months loans
                           are deducted from the assets.

                           “Allocated purchase funds” equals the cash retained by the issuer, after meet ing the required principal
                           funds test to purchase further assets in the next period. As PPAF3 is a substituting transacti on,
                           addi tional assets can be purchased until April 2009, subject to meeting the substitution criteria
                           determined by the rating agencies.


                           b. “ Issuer Fund Analysis”
                           As the issuer runs off a single cash waterfall and a required principal funds test (the cash is not split
                           into principal and revenue ledgers and a principal deficiency ledger), the issuer fund analysis section
                           details the cash held in the issuer’s transaction account that includes the first loss fund balance at the
                           principal determination date. The principal determination date is the last business day of the quarter
                           end.


                                                                                                                                                                                                 45
                                             Glossary of Terms
    Accruals made to the interest payment date : relates to the maturity of authorised investments for
    the 15 day period between the principal determination date and the interest payment date and the
    cash held in the various collection accounts on the principal determination date that are transferred
    to the transaction account on the next business day.

    Drawings on the PLF1 Subordinated Loans to meet the required principal funds test: this relates
    to the funds drawn on the subordinated loan as a result of not achieving the required principal
    funds test. The required principal funds test requires that during the substitution period, the value
    of the performing assets and the cash must equal £450,000,000 (provided that the issue r has not
    repaid any notes during the substitution period). Performing assets are defined as loans that are less
    than or equal to 12 months arrears at the determination date.

    Example

    Value of the notes                             £450,000,000
    Required amount of performing assets plus cash £450,000,000

    Performing assets as at June 07 PDD                 £384,415,000
    Cash required to bring the ratio to 1:1             £ 65,585,000

    After making all of the payments in the order of priority on each interest payment date (as outlined
    above), there must be £65,585,000 of available cash in the issuer’s transaction account to bring the
    ratios back into line. The issuer will use this cash to purchase further assets in the next period. To
    the extent that the issuer does not achieve the required cash amount, a drawing is made on the
    subordinated loan to meet the 1: 1 notes to assets test. This is credited on each interest payment
    date to the PPAF3 transaction account.

    Drawings on the PLF1 Subordinated Loan for interest shortfalls : this relates to the funds drawn
    on the subordinated loan as a result of the failure of the min imu m mortgage rate test. The weighted
    average interest rate on each portfolio (along with investment inco me and redemption fees) must
    exceed GBP Libor + 4%. To the extent that each issuer does n ot achieve this threshold, a cash
    drawing is made on the subordinated loan to make up for the resultant shortfall. In the underlying
    documentation, the drawing made on the subordinated loan is credited to the shortfall ledger, then
    on each interest payment date, forms part of the issuer funds , however for the purposes of the
    investor reports, the drawing on the subordinated loan is shown as a credit to issuer funds on each
    interest payment date to then run through the priority of payments.

c. “ Payments made from Issuer Funds”
The cash in the transaction account on the principal determination date plus the various accruals made
to the interest payment date, meets the issuer’s funding costs and operating expenses on each interest
payment date. Please note that the cash in the transaction account on the principal determination date
includes the £40,500,000 first loss fund. In addition, it also provides the funds to purchase further
assets during the substitution period, or, to pay down the notes.

These consist of the following funding and operating costs and expenses on each interest payment date,
made in GBP sterling.

    Trustee fees
    These relate to the accrual for the relevant period in respect of the trustee fee.

    Senior Administration Fee to PFPLC / Out of pocket expenses / Substitute Administrator
    Commitment Fee
    For PPAF3, the “senior” admin istration fee is calculated at 0.40% per annum, based on the current
    principal balance of the performing portfo lio assets on the preceding principal determination da te.
    The substitute admin istrator’s commit ment fees are calcu lated as follo ws:

        For second mortgages: 0.004% per annum, based on the current principal balance of the
        performing assets on the preceding principal determination date.

        For car finance loans : 0.0135% per annum, based on the current principal balance of the
        performing assets on the preceding principal determination date.

        For unsecured loans : 0.0175% per annu m, based on the current principal balance of the
        performing assets on the preceding principal determination date.

                                                                                                       46
    Glossary of Terms
       For retail credit loans : 0.011% per annum, based on the current principal balance of the
       performing assets on the preceding principal determination date.

   Payments to the Swap Counterparties
   PPAF3 has entered into a single balance guaranteed interest rate swap with HSBC Bank Plc in
   respect of the PPAF3 fixed rate assets. Under the terms of the swap, PPAF3 pays the swap
   counterparty (HSBC), the weighted average rate on the performing fixed rate loans and receives
   fro m HSBC, GBP Libor + 5.5% in year one, 5% in year two, 4.75% in year three and 4.5%
   thereafter. The net payment is paid as item (iii) in the priority of pay ments. Below is an examp le of
   the swap payment, based on the July 10 interest payment date.

PPAF3 / HSBC Swaps - FRONT SWAP
Start of the Interest Period                                                                15-Apr-10
End of the Interest Period                                                                   14-Jul-10
Number of Days in the Interest Period                                                               91
Number of Days in the Year                                                                        365
Current Principal Balance of Fixed Rate Assets on 31/03/10                             £41,959,077.95
WA Rate on the Fixed Rate Loans                                                               10.81%

PPAF3 Payment to HSBC on 15/07/10                                                       £1,130,837.39

HSBC Payment to PPAF3
GBP Libor on the Notes on 15/04/10                                                         0.65094%
Swap Margin                                                                                    4.50%
Total                                                                                          5.15%
HSBC Payment to PPAF3 on 15/07/10                                                         £538,841.40

Net Payment to HSBC as item (iii) in the Prioity of Payments on 15/07/10                  £591,995.99


   Note Interest / Swap Currency Interest
   These relate to the quarterly note interest and swap currency interest payable to each class of note
   holders on each interest payment date, where all of the payments are referenced to (a) three month
   GBP Libor plus the agreed note and the currency swap margin and (b) the GBP equivalent note
   value at the previous quarter end. All payments made to the GBP note holders and the currency
   swap provider are made in GBP sterling on each interest payment date. For examp le, the A 2a note
   interest is calculated by multip lying the A2a GBP equivalent note balance at the previous interest
   payment date by the current interest rate (three month GBP Libor + margin), divid ing this by 365,
   then multip lying by the number of days in the current interest period.

   For PPAF3, the A2a note interest on the July 2010 interest payment date equalled:

   £84,015,038.80 (A 2a GBP equivalent note balance) x 1.14854% (GBP Libor + currency swap
   margin) / 365 x 91 (number of days in the interest period) = £240,575.66 payment to PPAF3
   currency swap provider.

   Required principal funds
   This equals the cash that the issuer has set aside in order to purchase new assets in the next quarter,
   after meeting the required principal funds test. As PPAF3 is a substituting transaction, additional
   assets can be purchased until April 2009, subject to meeting the substitution criteria determined by
   the rating agencies.




                                                                                                       47
   Glossary of Terms
       Example of the principal funds test during the substitution period (June 07 PDD)

       During the substitution period, the value of the performing assets and the cash must equal
       £450,000,000 (provided that the issuer has not repaid any notes during the substitution period).
       Performing assets are defined as loans that are less than or equal to 12 months arrears at the
       determination date.

       Value of the notes                             £450,000,000
       Required amount of performing assets plus cash £450,000,000

       Performing assets as at June 07 PDD                                         £384,415,000
       Cash required to bring the ratio to 1:1                                     £ 65,585,000
     Payments made from Issuer Funds
 1   Trustee Fee                                                                                            -2
 2   Senior Administration Fee to PFPLC/Substitute Administrators Commitment Fee                          -565
 3   Payments to swap counterparty                                                                        -354
4a   A1 Note Interest                                                                                   -2,118
4b   A2 Swap Currency Interest                                                                          -2,596
 5   Third Party Payments                                                                                   -7
6a   B1 Note Interest                                                                                     -236
6b   B2 Swap Currency Interest                                                                            -365
7a   C1 Note Interest                                                                                     -278
7b   C2 Swap Currency Interest                                                                            -349
8a   D1 Note Interest                                                                                     -400
8b   D2 Swap Currency Interest                                                                            -337
 9   Required Principal Funds                                                                          -65,585
10   First Loss Fund re-establishments                                                                 -40,500
11   Termination Fees to Swap Provider                                                                       0
12   Junior Administration Fee to PFPLC                                                                   -436
13   Surplus income to the Issuer                                                                       -1,600



       After making all of the payments in the order of priority on each interest payment date (as outlined
       above), there must be £65,585,000 of available cash in the issuer’s transaction account to bring the
       ratios back into line. The issuer will use this cash to purchase further assets in the next period.

       Example of the principal funds test after the substitution period (June 10 PDD)

       Following the substitution period, the value of the performing assets and the cash must equal the
       value of the outstanding notes.
       Performing assets are defined as loans that are less than or equal to 12 months arrears at the
       determination date.

       Value of the notes at June 10 PDD              £278,926,000
       Required amount of performing assets plus cash £278,926,000

       Performing assets as at June 10 PDD                                         £260,252,000
       Cash required to bring the ratio to 1:1                                     £18,674,000

     Payments made from Issuer Funds
 1   Trustee Fee                                                                                       -2
 2   Senior Administration Fee to PFPLC/Substitute Administrators Commitment Fee                     -460
 3   Payments to swap counterparty                                                                   -592
4a   A1 Note Interest                                                                                -187
4b   A2 Swap Currency Interest                                                                       -241
 5   Third Party Payments                                                                              -7
6a   B1 Note Interest                                                                                 -52
6b   B2 Swap Currency Interest                                                                        -85
7a   C1 Note Interest                                                                                 -83
7b   C2 Swap Currency Interest                                                                       -107
8a   D1 Note Interest                                                                                -156
8b   D2 Swap Currency Interest                                                                       -134
 9   Required Principal Funds / Available Redemption Funds                                        -18,674
10   First Loss Fund re-establishments                                                            -40,500
11   Termination Fees to Swap Provider                                                                  0
12   Junior Administration Fee to PFPLC                                                              -313
13   Surplus income to the Issuer                                                                  -2,391



       After making all of the payments in the order of priority on each interest payment date (as outlined
       above), there is £18,674,000 of available cash in the issuer’s transaction account to bring the ratios
       back in line. The issuer will use this cash to repay the note holders on the interest payment date.

       First Loss Fund Replenishment
       As the cash flowing down the priority of pay ments includes the value of the first loss fund
       (£40,500,000), the first loss fund is re-established at item 10 of the priority of payments, as
       illustrated above.


                                                                                                                 48
       Glossary of Terms
                                         Junior Administration Fee to PFPLC
                                         For PPAF3 the “junior” ad min istration fee is calculated at 0.45% per annum, based on the
                                         performing asset balance on the preceding principal determination date.

                                         Surplus Income to the Issuer
                                         To the extent that an excess balance remains on the revenue ledger after making all pay ments in
                                         the order of priority on an interest payment date, the issuer is entitled to receive this balance to pay
                                         or provide for payment of any dividends or other distributions to be made by the issuer, such as
                                         interest on the fee letter, pay ment of P LF1 subordinated loan interest, repayment of the
                                         subordinated loan and management charges to PLF1. For the purposes of the investor reports, this
                                         is shown as a combined number.

                                     Issuer Fund Analysis                                                                                                       Issuer Funds(£'000)
                                     Cash balance in the Transaction Account at the Determination Date                                                                       63,506
                                     Accruals made to the Interest Payment Date plus cash held in the Collection Acounts                                                        478
                                     Drawing on the PLF1 Subordinated Loan to meet the Required Princiapl Funds test                                                              0
                                     Drawing on the PLF1 Subordinated Loan for Interest Shortfalls                                                                                0
                                     Total Cash for the Period                                                                                                               63,984

                                     Payments made from Issuer Funds
                               1     Trustee Fee                                                                                                                                     -2
                               2     Senior Administration Fee to PFPLC/Substitute Administrators Commitment Fee                                                                   -460
                               3     Payments to swap counterparty                                                                                                                 -592
                              4a     A1 Note Interest                                                                                                                              -187
                              4b     A2 Swap Currency Interest                                                                                                                     -241
                               5     Third Party Payments                                                                                                                            -7
                              6a     B1 Note Interest                                                                                                                               -52
                              6b     B2 Swap Currency Interest                                                                                                                      -85
                              7a     C1 Note Interest                                                                                                                               -83
                              7b     C2 Swap Currency Interest                                                                                                                     -107
                              8a     D1 Note Interest                                                                                                                              -156
                              8b     D2 Swap Currency Interest                                                                                                                     -134
                               9     Required Principal Funds / Available Redemption Funds                                                                                      -18,674
                              10     First Loss Fund re-establishments                                                                                                          -40,500
                              11     Termination Fees to Swap Provider                                                                                                                0
                              12     Junior Administration Fee to PFPLC                                                                                                            -313
                              13     Surplus income to the Issuer                                                                                                                -2,391



                        d. “ Purpose of the (Paragon Loan Finance (No.1) PLC) ” “(PLF1)”
                        Establishing the first loss fund, funding discretionary and mandatory further advances in situations
                        where the issuer has insufficient principal cash during an interest period and establishing the shortfall
                        fund where the min imu m mortgage rate hasn't been achieved. In addition, to bring the first loss fund to
                        the required level and the of swap termination fees to the extent cash is insufficient during an interest
                        period.

                        The issuer can draw on the subordinated loan to bring the required principal funds test back to a 1:1
                        ratio.

                        (3) AVAILABLE CREDIT E NHA NCEMENT SECTION – PAGE 3


Available Credit Enhancement

First Loss Fund Analysis
First Loss Fund at Closing                                                                                                                                                                        40,500
Last Quarter closing First Loss Fund balance                                                                                                                                                      40,500
Drawings this quarter to fund                                                                                                                                                                          0
A Note/ Swap Currency Interest                                                                                                                                                                         0
B Note/ Swap Currency Interest                                                                                                                                                                         0
C Note/ Swap Currency Interest                                                                                                                                                                         0
D Note/ Swap Currency Interest                                                                                                                                                                         0
Replenishments for losses during the period                                                                                                                                                            0
Closing First Loss Fund Balance                                                                                                                                                                   40,500

Non Performing Loans and Write off of Portfolio Assets
                                                            Personal Loans         Retail Credit         Secured Loans      Car Finance
Movement into the > 12 Month Arrears Loans                                   125                   117                387                  24                                                        653
Write off of loans                                                            90                     0               1072                 730                                                      1,892
Total for the Period                                                                                                                                                                               2,545
Over Collateralisation
Current Principal Balance (£'000)                                                                                                                                                             260,252
Principal Cash (£'000)                                                                                                                                                                              0
Total Collateralisation                                                                                                                                                                       260,252
Outstanding Note Principal (£'000)                                                                                                                                                            260,252

Mandatory and Discretionary Further Advances (FA's)                                                                                             DFA's                MFA's                Total
Total FA's permitted                                                                                                                                        0         n/a                              0
FA's made to last quarter                                                                                                                               4,229         n/a                          4,229
FA's made this quarter                                                                                                                                      0         n/a                              0
Total FA's made to date                                                                                                                                 4,229         n/a                          4,229
Remaining permitted FA's (N/A)


Collateral Level Data                                                                                                                                               30-Jun-10
Original Weighted Average Yield                                                                                                                                      10.63%
Original Weighted Note Coupon                                                                                                                                         5.22%
Original Spread                                                                                                                                                       5.41%
Current Weighted Average Yield                                                                                                                                        9.34%
Current Weighted Note Coupon                                                                                                                                          2.19%
Current Spread                                                                                                                                                        7.15%
Stated Maturity Class A Notes                                                                                                                                       15-Apr-36
Stated Maturity Class B Notes                                                                                                                                       15-Apr-36
Stated Maturity Class C Notes                                                                                                                                       15-Apr-36
Stated Maturity Class D Notes                                                                                                                                       15-Apr-36
Original Weighted Average Maturity (months)                                                                                                                           111.34
Current Weighted Average Maturity (months)                                                                                                                            154.74
Quarterly Prepayment Rate                                                                                                                                             5.79%
Life Time Prepayment Rate                                                                                                                                            34.37%


PPAF3 INVESTOR REPORT QUARTER ENDING JUNE 2010




                                                                                                                                                                                                           49
                                           Glossary of Terms
a. “ First Loss Fund”
A % of the closing date’s GBP equivalent note balance (9%) agreed with the rating agency / agencies
on the closing date is deposited as cash to the issuer's transaction bank account from the PLF1
subordinated loan.

To the extent that the issuer's revenue resources are insufficient on an interest payment date to pay its
senior liab ilit ies or to make up for any losses during the period, a drawing is made on the first loss fund
to enable the issuer to make such payments.
To the extent that the issuer has sufficient revenue available in the next interest period, the issuer will
use the surplus revenue to bring the first loss fund back to its required amount.

b. “ Non Performing Loans and write off of Portfolio Assets”
For the non performing loans (defined as loans that are > 12 months in arrears), this analyses the
movement into >12 months arrears bucket by comparing the value of loans in the > 12 months arrears
bucket at the end of the current quarter to the value of loans in the > 12 months arrears bucket at the
previous quarter end, and in addition, the actual write of assets during the reporting period. The sum of
these items equals the write offs for the period.

c. “ Overcollateralisation”
There is no over collateralisation requirement for PPAF3.

d. “ Discretionary Further Advances”
Further advances, financed out of principal cash provided that certain conditions have been met. This
will only relate to the PPF second charged residential mortgages.


COLLATERAL LEVEL DATA SECTION – PAGE 3

a. “ Original Weighted Average Yield”
The weighted average interest rate charged to borrowers at the closing date of the transaction, weighted
by reference to the customer’s principal balance.

b. “ Original Weighted Note Coupon”
The weighted average note interest rate and currency swap interest rate, (equal to the GBP funding
margin) charged to the issuer at the closing date of the transaction, calculated on a weighed average
basis by reference to the GBP equivalent note value on the closing date.

c. “ Original Spread”
The result of deducting (i) the weighted average interest rate on the assets from (ii) the weighted
average GBP funding margin.

d. “ Current Weighted Average Yield”
The weighted average interest rate charged on the assets at the relevant quarter end, weighted by
reference to the customer’s principal balance.

e. “ C urrent Weighted Note Coupon”
The weighted average note interest rate and currency swap interest rate, equal to GBP funding marg in
charged to the issuer at the start of the quarter, calculated by reference on a weighed average basis to
the GBP equivalent note value at the preceding interest payment date.

f. “ C urrent Spread”
The result of deducting the current weighted average interest rate on the assets fro m the current
weighted GBP funding margin.

g. “ Stated Maturity”
The interest payment date following the assets latest maturity.

h. “ Originated Weighted Average Maturity”
The weighted average remaining term of the assets at the closing date, calculated by reference to the
remain ing term, and weighted against the customer’s principal balance.

i. “ Current Weighted Average Maturity”
The weighted average remain ing term of the assets at the relevant quarter end, calculated by reference
to the remaining term, and weighted against the customer’s principal balance.

                                                                                                          50
     Glossary of Terms
                           j(i). “ Quarterly Prepayment Rate”
                           The quarterly prepayment rate calculated by analysing the redemptions / early settlements and
                           scheduled repayments and then dividing the result by the closing principal balance of the assets at the
                           previous quarter end.

                           (ii). “ Lifetime Prepayment Rate”
                           The lifet ime weighted average prepayment since the closing date using the following formula and
                           example:

                           1 - ( (1- a1) x (1 - a2) x (1 - a3) .......(1- an)) ^ (4 / n)

                           Where:
                           a1 = redemption rate for quarter 1
                           a2 = redemption rate for quarter 2
                           a3 = redemption rate for quarter 3
                           an = redemption rate for quarter current

                           n = no of quarters expired including current quarter

                           ^ = to the power

                           For examp le, in the first three quarterly redemption rates were seen in a deal: 3.67%, 5.77% and 4.51%

                           The life t ime redemption rate is calcu lated as:

                           1 - ((1 - 3.67%) x (1 - 5.77%) x (1 - 4.51%)) ^ 4/ 3

                           1 - ((0.9633) x (0.9423) x (0.9549)) ^ 4/3

                           1 - 0.8668 ^ 1.333

                           1.1736

                           17.36%

                           (4) COLLATERAL LEVEL DATA SECTION C ONTINUE D – PA GE 4


Delinquency Status                                                                                                                                                                                                                No.       £'000 Value
Enforcements in Progress - Secured Loans                                                                                                                                                                                             972           28,098
Enforcements in Progress - Car Loans                                                                                                                                                                                                  44              513
Enforcements in Progress - Retail Credit Loans                                                                                                                                                                                       231              302
Enforcements in Progress - Unsecured Loans                                                                                                                                                                                           189              586
Total                                                                                                                                                                                                                              1,436           29,499

Cars in Possession                                                                                                                                                                                                                    22                365
Properties in Possession (Secured Loans)                                                                                                                                                                                              13                479
Aggregate Principal Balance of Repurchased Loans                                                                                                                                                                                                          0
Aggregate Balance of Substituted Loans                                                                                                                                                                                                                    0
Principal Losses
Agg Loan Principal Losses (during related Collection Period)                                                                                                                                                                                          2,545
Cumulative Principal Losses (since closing date)                                                                                                                                                                                                     67,715
Recoveries (Cumulative)                                                                                                                                                                                                                              13,479

Possession Properties Sold
Properties Sold by Mortgagee                                                                                                                                                                                                                      4
Average Arrears @ Redemption date                                                                                                                                                                                                               11.65
Average Days between Possession & Redemption                                                                                                                                                                                                   259.75

Vehicles Sold
Vehicles Sold by the administrator                                                                                                                                                                                                              120
Average Arrears @ Redemption date                                                                                                                                                                                                               3.12
Average Days between Possession & Sale                                                                                                                                                                                                         62.51

                                                                                                                                  http://www.paragon-group.co.uk
FOR ADDITIONAL INFORMATION ON THE UNDERLYING ASSETS, PLEASE REFER TO THE "POOL TABLES" AND "SUMMARY" SECTIONS POSTED ON THE PARAGON WEBSITE

Delinquency Summary                                                                                                                                            Unsecured Personal Loans (£'000)              Retail Credit Loans (£'000)
                                                                                                                                                        No.            %        £'000 Principal       %             No.            %       £'000 Principal        %
Performing                                                                                                                                             2,020        84.45%           5,373          82.48%         2,520        85.08%          2,311          81.66%
>1<=2 Months                                                                                                                                             33          1.38%            150           2.30%            29          0.98%            20            0.71%
>2<=3 Months                                                                                                                                             30          1.25%             80           1.23%            29          0.98%            35            1.24%
>3<=4 Months                                                                                                                                             28          1.17%             95           1.46%            32          1.08%            30            1.06%
>4<=5 Months                                                                                                                                             39          1.63%            114           1.75%            45          1.52%            47            1.66%
>5<=6 Months                                                                                                                                             38          1.59%            110           1.69%            49          1.65%            47            1.66%
>6<=12 Months                                                                                                                                           204          8.53%            592           9.09%           258          8.71%           340           12.01%
Total Performing Assets                                                                                                                                2,392       100.00%           6,514         100.00%         2,962       100.00%          2,830         100.00%
>12 Months                                                                                                                                              953                          6,062                          592                         1,344
Total Assets                                                                                                                                           3,345                        12,576                         3,554                        4,174

Delinquency Summary                                                                                                                                            Secured Loans (£'000)                         Car Finance Loans (£'000)
                                                                                                                                                        No.            %         £'000 Principal      %            No.            %        £'000 Principal        %
Performing                                                                                                                                             7,768        88.88%           198,578        87.60%        2,000        93.59%          22,467          92.72%
>1<=2 Months                                                                                                                                            311          3.56%            8,911         3.93%           53          2.48%            666            2.75%
>2<=3 Months                                                                                                                                            183          2.09%            5,397         2.38%           24          1.12%            308            1.27%
>3<=4 Months                                                                                                                                            125          1.43%            3,299         1.46%           13          0.61%            137            0.57%
>4<=5 Months                                                                                                                                             75          0.86%            2,009         0.89%           9           0.42%            102            0.42%
>5<=6 Months                                                                                                                                             54          0.62%            1,481         0.65%           12          0.56%            191            0.79%
>6<=12 Months                                                                                                                                           224          2.56%            7,001         3.09%           26          1.22%            361            1.49%
Total Performing Assets                                                                                                                                8,740       100.00%           226,676       100.00%        2,137       100.00%          24,232         100.00%
>12 Months                                                                                                                                              102                           2,928                         45                           797
Total Assets                                                                                                                                           8,842                         229,604                      2,182                        25,029

Total Assets                                                                                                                                                                                                                                  271,383

Required Principal Funds Test

Total Current Principal Balance of Performing Assets                                                                                                                                                                                          260,252
Allocated Purchase Funds from the Priority of Payments                                                                                                                                                                                           0
Total                                                                                                                                                                                                                                         260,252

Notes Outstanding                                                                                                                                                                                                                             260,252

Result of the Required Principal Funds Test                                                                                                                                                                                                      1

Contact Name                   Tel.                 Email
John Harvey                    0121 712 3894        john.harvey@paragon-group.co.uk
Andrew Kitching                0121 712 3896       andrew.kitching@paragon-group.co.uk
Jimmy Giles                   0121 712 2315        jimmy.giles@paragon-group.co.uk


PPAF3 INVESTOR REPORT QUARTER ENDING JUNE 2010




                                                                                                                                                                                                                                                 51
                                              Glossary of Terms
Delinquency Status
k(i). " Enforcements in progress" : assets where the administrator has commenced or has issued
proceedings against the borrowers in breach of their credit ag reements.
  Delinquency Status                                                                      No.      £'000 Value
  Enforcements in Progress - Secured Loans                                                   972          28,098
  Enforcements in Progress - Car Loans                                                        44             513
  Enforcements in Progress - Retail Credit Loans                                             231             302
  Enforcements in Progress - Unsecured Loans                                                 189             586
  Total                                                                                    1,436          29,499



k(ii)." Enforceme nts Completed" : assets which have been repossessed by the administrator that have
not been subsequently sold, at the relevant quarter end.

l. " Aggregate Principal Balance of Repurchased Loans" loans repurchased by PFPLC fro m the
issuer caused by a breach of the security warranties.

m. “ Aggregate Balance of Substituted Loans”
Assets purchased fro m available principal cash during that period.

n. “ Recoveries”
After complet ion and sale of any relevant asset, borrowers are jointly and severally liable fo r any
outstanding loan balance and to the extent that a balance remains outstanding, PFPLC as the
administrator will pursue borrowers for any such balance. To the extent that further cash is received
fro m borrowers after PFPLC have written off such loans, the cash is credited to the transaction account
to form part of the issuer’s funds on each interest payment date.

o. “Possession Properties Sold”
      Possession Properties Sold
      Properties Sold by Mortgagee                                                                              4
      Average Arrears @ Redemption date                                                                       11.65
      Average Days between Possession & Redemption                                                           259.75



              Possession properties sold by the administrator.
              The average number of months in arrears at the sale date relates to the number of missed
              payments at the property sale date.
              The number of days between the possession to sale measures the time period involved in
              disposing of the property.

p. “Vehicles Sold”
      Vehicles Sold
      Vehicles Sold by the administrator                                                                      120
      Average Arrears @ Redemption date                                                                       3.12
      Average Days between Possession & Sale                                                                 62.51



              Vehicles sold by the administrator.
              The average number of months in arrears at the sale date relates to the number of missed
              payments at the vehicle sale date.
              The number of days between the possession to sale measures the time period involved in
              disposing of the vehicle.

q) " Delinquency summary"

" arrears" = missed payments

Performing - assets that are less that or equal to one month in arrears (i.e. missed payments).
>1<= 2 months – mortgages that are greater than one in arrears, less than or equal to two          months
arrears.
>2 <= 3 months – assets that are greater than two months arrears, less than or equal to three       months
arrears.
>3 <= 4 months – assets that are greater than three months arrears, less than or equal to four     months
arrears.
>4 <=5 months – assets that are greater than four months arrears, less than or equal to five       months
arrears.
>5 <=6 months – assets that are greater than five months arrears, less than or equal to six        months
arrears.
>6 <=12 months – assets that are greater than six months arrears, less than or equal to twelve     mo nths
arrears.

                                                                                                             52
      Glossary of Terms
                >12 months - assets that are greater than twelve months in arrears.

                The arrears bandings are calculated on payments expected, minus payments received, divided by the
                monthly payments to put the loan into the relevant arrears band.

                Example:

                                      Payments expected : £600
                                      Payments received : NIL
                                      Monthly payment : £100
                                      Arrears Band : 6 months

                Fro m here, the arrears band is then linked into the customer’s outstanding principal balance.
Delinquency Summary                                                      Unsecured Personal Loans (£'000)               Retail Credit Loans (£'000)
                                                                  No.            %         £'000 Principal        %            No.             %      £'000 Principal       %
Performing                                                       2,020        84.45%            5,373          82.48%         2,520         85.08%        2,311          81.66%
>1<=2 Months                                                       33          1.38%             150            2.30%           29           0.98%          20            0.71%
>2<=3 Months                                                       30          1.25%              80            1.23%           29           0.98%          35            1.24%
>3<=4 Months                                                       28          1.17%              95            1.46%           32           1.08%          30            1.06%
>4<=5 Months                                                       39          1.63%             114            1.75%           45           1.52%          47            1.66%
>5<=6 Months                                                       38          1.59%             110            1.69%           49           1.65%          47            1.66%
>6<=12 Months                                                     204          8.53%             592            9.09%          258           8.71%         340           12.01%
Total Performing Assets                                          2,392       100.00%            6,514         100.00%         2,962        100.00%        2,830         100.00%
>12 Months                                                        953                           6,062                          592                        1,344
Total Assets                                                     3,345                         12,576                         3,554                       4,174

Delinquency Summary                                                      Secured Loans (£'000)                          Car Finance Loans (£'000)
                                                                  No.             %         £'000 Principal       %            No.            %       £'000 Principal       %
Performing                                                       7,768         88.88%          198,578         87.60%         2,000        93.59%         22,467         92.72%
>1<=2 Months                                                      311           3.56%           8,911           3.93%           53          2.48%          666            2.75%
>2<=3 Months                                                      183           2.09%           5,397           2.38%           24          1.12%          308            1.27%
>3<=4 Months                                                      125           1.43%           3,299           1.46%           13          0.61%          137            0.57%
>4<=5 Months                                                       75           0.86%           2,009           0.89%            9          0.42%          102            0.42%
>5<=6 Months                                                       54           0.62%           1,481           0.65%           12          0.56%          191            0.79%
>6<=12 Months                                                     224           2.56%           7,001           3.09%           26          1.22%          361            1.49%
Total Performing Assets                                          8,740        100.00%          226,676        100.00%         2,137       100.00%         24,232        100.00%
>12 Months                                                        102                           2,928                           45                         797
Total Assets                                                     8,842                         229,604                        2,182                       25,029

Total Assets                                                                                                                                             271,383

Required Principal Funds Test

Total Current Principal Balance of Performing Assets                                                                                                     260,252
Allocated Purchase Funds from the Priority of Payments                                                                                                      0
Total                                                                                                                                                    260,252

Notes Outstanding                                                                                                                                        260,252

Result of the Required Principal Funds Test                                                                                                                 1




                The arrears levels are measured against the performing assets.

                p. “Required Principal Funds Test”
                PPAF3 does not work off a principal deficiency ledger mechanis m. At the end of each quarter, the
                administrator will put the assets into their respective arrears bands to determine the total value of
                performing assets, defined as being less than or equal to 12 months in arrears.

                The administrator carries out a “required principal funds test” whereby the value of the cash in the
                transaction account on an interest payment date, after making all of the payments as far as the Class D
                note/swap currency interest in the priority of payments, and the value of the performing assets must
                equal the value of the notes.

                Example of required principal funds test during the substitution period (July 07 PDD)

                During the substitution period, the value of the performing assets and the cash must equal
                £450,000,000 (provided that the issuer has not repaid any notes during the substitution period).
                Performing assets are defined as loans that are less than or equal to 12 months arrears at the
                determination date.

                Outstanding notes                                                                 £450,000,000
                Required amount of performing assets and cash                                     £450,000,000

                Performing assets as at July 07 PDD                                               £384,415,000
                Cash required to bring the ratio to 1:1                                           £ 65,585,000




                                                                                                                                                                                  53
                            Glossary of Terms
Required Principal Funds Test

Total Current Principal Balance of Performing Assets                                       384,415
Allocated Purchase Funds from the Priority of Payments                                     65,585
Total                                                                                      450,000

Notes Outstanding                                                                          450,000

Result of the Required Principal Funds Test                                                   1


After making all of the payments in the order of priority, there must be £ 65,585,000 of availab le cash
in the transaction account to bring the ratios back into line.

Example of required principal funds test after the substitution period (June 10 PDD)

Following the substitution period, the value of the performing assets and the cash must equal the value
of the outstanding notes.
Performing assets are defined as loans that are less than or equal to 12 months arrears at the
determination date.

Value of the notes at June 10 PDD                            £260,252,000
Performing assets plus cash                                  £260,252,000


    Required Principal Funds Test

    Total Current Principal Balance of Performing Assets                                     260,252
    Allocated Purchase Funds from the Priority of Payments                                      0
    Total                                                                                    260,252

    Notes Outstanding                                                                        260,252

    Result of the Required Principal Funds Test                                                   1




                                                                                                       54
     Glossary of Terms
(5) STR UCTURAL FEATURE S

a. “ PPAF3 Substitution”
PPAF3 is a substituting transaction from 20th May 05 to 15th April 2009, subject to meeting the criteria
specified in the below section on each substitution date. The allocated purchase funds can’t exceed
27% of the notes (£121,500,000), assuming notes have not been repaid.

PPAF3 Substitution criteria

    Required principal funds test is maintained. (i.e. 1:1 ratio of perfo rming assets (less than or equal
    to 12 months arrears) and cash (after meet ing all of PPA F3’s senior expenses), in the transaction
    account, to the outstanding note value.
    First loss fund is at the required level (£40,500,000 up to the interest payment date falling in April
    2010).
    First payment made within 60 days of asset origination date.
    No asset more than one month in arrears at the cut off date.
    No asset is in arrears during the 6 month period prior to the cut off date.
    At the time of substitution no payment has been rescheduled or capitalised .
    Substitution would not result in an adverse change to the current ratings of the notes.
    All receivables entered into in the ordinary course of business.
    PPF, PCF and PFPLC are financially solvent.
    No right off set off.
    Governed by English/ Scottish/ Northern Irish law.
    Unsecured loans restricted to 15% of the performing portfolio assets and cash.
    Unsecured and Retail Credit restricted to 25% performing assets and cash.
    Unsecured, Retail Cred it and Car Finance loans restricted to 60% performing assets and cash.
    Secured loans restricted to 80% of the performing portfolio assets and cash.
    Allocated purchase funds restricted to 27% of the note value. The maximu m amount of cash that
    PPAF3 can retain in its transaction account for future substitutions (assuming zero note
    repayments) is £121,500,000.

PPF Secured Loans

    Maximu m 80% of the performing portfolio assets and cash set aside for substitutions.
    Swap rate margin of 4% to be met in respect of fixed rate mortgages (or any other margin agreed
    with the swap provider).
    Weighted average LTV of the first mortgagee and PPF’s second charge must not exceed 92%.
    No more than 10% of the assets to be greater than 3 months in arrears unless the inte rest versus
    interest due from borrowers is 100% or more. The arrears tests are measured against the
    performing assets (less than or equal to 12 months arrears).
    No CCJ’s as at date of origination.
    Passing the S&P weighted average foreclosure frequency and loss severity tests within a limit of
    0.25% (fro m the closing date), or any other percentage agreed with the rating agencies.
    Maximu m maturity is April 2034.
    Minimu m charging rate of Libor p lus 4% to be maintained on the overall portfolio.

PCF Loans

    Unsecured, Retail Credit and Car Finance loans restricted to 60% performing assets and cash set
    aside for substitutions.
    Swap rate margin o f 3.3% to be met (o r any other margin agreed with the swap provider).
    Personal Contact Purchase and Lease agreements limited to a maximu m of £3,000,000.
    No more than 4% of the assets to be greater than 3 months in arrears unless the interest received
    versus interest due from borrowers is 100% or more. Please note that all of the arrears tests are
    measured against the performing assets (less than or equal to 12 months arrears).
    Minimu m term to maturity 6 month.
    No loan will have a term beyond April 2019 (this takes the 10 year caravan/motor home term into
    account).

Unsecured Loans

    Unsecured, Retail Credit and Car Finance loans restricted to 60% performing assets and cash set
    aside for substitutions.
    Unsecured and Retail Credit restricted to 25% performing assets and cash.
    Unsecured Personal Loans restricted to 15% performing assets and cash.
                                                                                                       55
    Glossary of Terms
    Swap rate margin o f 7% to be met (o r any other margin agreed with the swap provider).
    No more than 15% of the assets to be greater than 3 months in arrears unless the interest received
    versus interest due from borrowers is 100% or more. Please note that all of the arrears tests are
    measured against the performing assets (less than or equal to 12 months arrears).
    No loan will have a term beyond April 2024.

Retail Finance loans

    Unsecured and Retail Credit restricted to 25% performing assets and cash.
    Unsecured, Retail Credit and Car Finance loans restricted to 60% performing assets and cash set
    aside for substitutions.
    Swap rate marg in of 4.7% to be met (or any other marg in agreed with the swap provider). For the
    swap marg ins, this is on the substituted assets and not on the overall portfolio.
    For the Retail Credit loans, no more than 6% o f the assets to be greater than 3 months in arrears
    unless the interest received versus interest due from borro wers is 100% or more. Please note that
    all of the arrears tests are measured against the performing assets (less than or equal to 12 months
    arrears).
    No loan will have a term beyond April 2024.
    No more than 25% o f the loans are deferred payment loans and still with in their deferred period.
    The deferred period for any deferred payment loan must not exceed 12 months.

b. “ Repayment of the GBP a nd Euro Notes”
To the extent that the substitution criteria is not satisfied and cash builds up in the PPAF3 transaction
account and exceeds the 27% note balance restriction imposed by the rating agen cies to eliminate any
cash carry cost, notes are repaid during the substitution period, or alternatively, Paragon may elect not
to substitute assets and repay the notes during the substitution period.

    Repayment of the Class A Notes

After the Substitution period (April 2009) or if notes are repaid during the substitution period, all of the
available redemption funds repays the Class A notes until PPAF3 hits a Determination Event.


                                   GBP Equi valent of the Notes       GBP Equi valent %
              Class A1 Notes       £146,000,000                       45.06%
              Class A2 Notes       £178,000,000                       54.94%
              Total Notes          £324,000,000

Pro rata repayment of the Class A notes is based on the GBP equivalent percentage on the closing date
(as above) and using the below exchange rate for the Class A2 notes :

Class A2 notes = £1 : €1.46

For examp le : at the July 10 Interest Pay ment Date

Where:
   Total availab le redemption funds equals £18,674,223.71.

    Available redemption funds for the A1 notes equals:
    £18,674,223.71 x 45.06% (GBP equivalent percentage of the Class A1 notes at closing) =
    £8,414,605.20.

    Available redemption funds for the A2 notes equals:
    £18,674,223.71 x 54.94% (GBP equivalent percentage of the Class A2 notes at closing) =
    £10,259,618.51.

The Class A1 availab le redemption funds (£8,414,605.20) are paid to Cit ibank as the principal paying
agent in sterling on each interest payment date for onward payment to the note holders.

The Class A2 available redemption funds (£10,259,618.51) are paid to the currency swap provider
(HSBC) in sterling on each quarterly interest date. From here, the currency swap provider, using the
fixed Euro exchange rate at the closing date, will convert this sterling value into Euros.




                                                                                                         56
     Glossary of Terms
For examp le,

    Euro Class A2 note repayment equals:
    £10,259,618.51 (total available redemption funds for the A2 notes) x €1.46 (fixed Euro exchange
    rate at closing) = €14,979,043.02.

Fro m here, the currency swap provider will make this payment (€14,979,043.02) to Cit ibank as the
principal paying agent, who in turn, will pass this onto the Class A2 note holders.




                                                                                                 57
    Glossary of Terms
(6) QUARTERLY POOL TABLES

The pool tables contains information on the underlying assets split by secured loans, car loans, retail
loans, unsecured loans and the total portfolio as at the relevant quarter end. The overview section
within the pool tables are as follows:

Pool Tables - Overall Collateral Information



Portfolio Loans Key Features                            Secured Loans           Car Loans     Retail Loans       Unsecured Loans       Total Pool


Current Principal Balance                               226,675,939.85       24,232,565.02    2,829,333.90          6,514,189.02   260,252,027.79
Weighted average loan to value                                 79.61%                  n/a             n/a                   n/a          79.61%
Weighted average loan to value - Nationwide Index              79.53%                  n/a             n/a                   n/a          79.53%
Weighted average loan to value - Halifax Index                 85.12%                  n/a             n/a                   n/a          85.12%
Average current principal balance outstanding       £        25,935.46   £      11,339.53 £        955.21    £          2,723.32        16,034.26
Weighted average seasoning (months)                             35.28               40.19           34.83                110.83            37.63
Weighted average annual yield                                  9.120%              9.952%         12.263%               13.458%           9.340%
Weighted average remaining term (months)                      173.768               22.54           27.83                 39.35           154.74
Variable Rate Loans %                                          99.76%               0.00%           0.00%                 0.00%           86.89%
< or= 1 months arrears (Loan Value)                     198,578,021.56       22,466,526.40    2,310,664.00          5,372,890.44   228,728,102.40
< or= 1 months arrears ( %)                                    87.60%              92.71%          81.67%                82.48%           87.89%
Weighted average overall arrears (months)                       0.439               0.247           1.237                 1.033            0.445
Weighted average > 3 <=12 arrears (months)                      5.791               5.938           7.350                 7.044            5.853



      Current Pri ncipal Balance
      The principal balances of assets in the portfolio at the relevant quarter end.

      Weighted average loan to value
      The weighted average LTV of the secured assets at the relevant quarter end. This is calculated by
      dividing the current valuation by the principal balance (including the 1st mortgagee principal
      balance) of the asset at the quarter end and weighting this against the customer’s principal balance
      (including the 1st mortgagee principal balance). Valuations are calculated at mo rtgage origination
      date, and are updated when a discretionary further advance is released.

      Nationwide Index Loan to Value
      The weighted average LTV o f the assets based on the Nationwide index valuation at the previous
      quarter end. These are updated quarterly, at the end of March, June, September and December.

      Halifax Index Loan to Value
      The weighted average LTV of the assets based on the Halifax index valuation at the previous
      quarter end. These are updated quarterly, at the end of March, June, September and December.

      Average current principal balance outstanding
      The total principal balances in the portfolio divided by the number of loans at the relevant quarter
      end.

      Weighted average seasoning (months)
      The weighted average period (in months) that assets have been running since year of orig ination, at
      the relevant quarter end.

      Weighted average annual yield
      The weighted average interest rate charged on the assets at the relevant quarter end.

      Weighted average remaining term (months)
      The weighted average remain ing term (in months) of the assets at the relevant quarter end.

      Variable Rate Loans %
      The percentage of current principal balances of secured loans on variable rate products at the
      relevant quarter end.

      < or = 1 mo nths arrears (loan value)
      The value of the current principal balances of assets < or = 1 months arrears at the relevant quarter
      end.




                                                                                                                                               58
       Glossary of Terms
        < or = 1 mo nths arrears (%)
        The percentage of the current principal balances of assets < or = 1 months arrears at the relevant
        quarter end.

        Weighted average overall arrears (months)
        The weighted average overall arrears (in months) of the assets at the relevant quarter end.

        Weighted average > 3 <= 12 arrears (months)
        The weighted average > 3 <= 12 arrears (in months) of the assets at the relevant quarter end.

The detailed info rmation of the underlying assets is as follows:

a. “Portfolio Loans Distribution by loan to value ratios”
The distribution of current principal balances by loan to value ratios. This is calculated by dividing the
current valuation by the principal balance of the asset at the relevant quarter end and weighting this
against the customer’s principal balance. Valuations are calculated at the mortgage origination date,
and are updated when a discretionary further advance is released.

Secured Loans
Portfolio Loans Distribution by loan to value ratios


                                                       Current Principal Balance   Per cent.   Number   Per cent.


> 0 < = 25                                                         1,644,640.36      0.73%       132      1.51%
> 25 < = 50                                                       19,000,478.21      8.38%       888     10.16%
> 50 < = 55                                                        8,118,411.24      3.58%       359      4.11%
> 55 < = 60                                                       10,612,998.76      4.68%       419      4.79%
> 60 < = 65                                                       12,626,149.00      5.57%       525      6.01%
> 65 < = 70                                                       19,307,650.45      8.52%       741      8.48%
> 70 < = 75                                                       22,871,429.92     10.09%       827      9.46%
> 75 < = 80                                                       25,717,888.38     11.35%       987     11.29%
> 80 < = 85                                                       17,127,403.38      7.56%       676      7.73%
> 85 < = 90                                                       16,230,621.94      7.16%       661      7.56%
> 90 < = 95                                                       21,325,976.96      9.41%       864      9.89%
> 95 < = 100                                                      17,570,799.86      7.75%       682      7.80%
> 100 < = 110                                                     14,850,956.47      6.55%       473      5.41%
> 110 < = 120                                                     10,935,123.86      4.82%       297      3.40%
> 120 < = 130                                                      6,885,663.46      3.04%       170      1.95%
> 130                                                              1,849,747.60      0.82%        39      0.45%


                                                                226,675,939.85                  8,740




b. “Distribution by loan to value ratios – Nationwide Index”
The distribution of current principal balances by loan to value ratios based on the Natio nwide index
valuation. These are updated quarterly, at the end of March, June, September and December.




                                                                                                              59
        Glossary of Terms
Secured Loans
Portfolio Loans Distribution by loan to value ratios - Nationwide Index Mar 10


                                                              Current Principal Balance    Per cent.   Number          Per cent.


> 0 < = 25                                                                 2,083,703.94       0.92%      177             2.03%
> 25 < = 50                                                               22,043,052.81       9.72%     1,070           12.24%
> 50 < = 55                                                                9,975,370.07       4.40%      424             4.85%
> 55 < = 60                                                               11,367,647.39       5.01%      474             5.42%
> 60 < = 65                                                               16,785,989.02       7.41%      623             7.13%
> 65 < = 70                                                               19,374,000.96       8.55%      726             8.31%
> 70 < = 75                                                               18,741,578.28       8.27%      660             7.55%
> 75 < = 80                                                               18,907,314.23       8.34%      686             7.85%
> 80 < = 85                                                               17,128,749.98       7.56%      665             7.61%
> 85 < = 90                                                               14,498,394.41       6.40%      586             6.70%
> 90 < = 95                                                               15,455,258.27       6.82%      595             6.81%
> 95 < = 100                                                              14,808,534.16       6.53%      577             6.60%
> 100 < = 110                                                             23,144,757.58     10.21%       840             9.61%
> 110 < = 120                                                             10,603,893.25       4.68%      328             3.75%
> 120 < = 130                                                              7,027,719.76       3.10%      193             2.21%
> 130                                                                      4,729,975.74       2.09%      116             1.33%


                                                                         226,675,939.85                 8,740




c. “Distribution by loan to value ratios – Halifax Index”
The distribution of current principal balances by loan to value ratios based on the Halifa x index
valuation. These are updated quarterly, at the end of March, June, September and December.

Secured Loans
Portfolio Loans Distribution by loan to value ratios - Halifax Index Mar 10


                                                              Current Principal Balance    Per cent.     Number       Per cent.


> 0 < = 25                                                                  1,636,766.39     0.72%              140     1.60%
> 25 < = 50                                                                17,365,483.47     7.66%              887    10.15%
> 50 < = 55                                                                 8,474,501.68     3.74%              363     4.15%
> 55 < = 60                                                                 9,560,595.89     4.22%              399     4.57%
> 60 < = 65                                                                11,974,614.89     5.28%              494     5.65%
> 65 < = 70                                                                16,922,511.39     7.47%              621     7.11%
> 70 < = 75                                                                16,986,327.91     7.49%              638     7.30%
> 75 < = 80                                                                16,254,273.78     7.17%              589     6.74%
> 80 < = 85                                                                16,360,792.60     7.22%              594     6.80%
> 85 < = 90                                                                16,560,261.76     7.31%              621     7.11%
> 90 < = 95                                                                14,736,806.29     6.50%              585     6.69%
> 95 < = 100                                                               14,478,829.33     6.39%              560     6.41%
> 100 < = 110                                                              26,455,347.29    11.67%         1,004       11.49%
> 110 < = 120                                                              19,111,811.33     8.43%              685     7.84%
> 120 < = 130                                                               9,610,075.87     4.24%              293     3.35%
> 130                                                                      10,186,939.98     4.49%              267     3.05%


                                                                          226,675,939.85                   8,740




                                                                                                                             60
        Glossary of Terms
d. “Portfolio Loans Distribution by Rate Fixing Method”
The distribution of current principal balances for secured assets by rate fixing method at the relevant
quarter end.

Secured Loans
Portfolio Loans Distribution by Rate Fixing Method


                                                            Current Principal Balance      Per cent.     Number             Per cent.


Variable                                                                226,126,264.34      99.76%            8,718          99.75%
Fixed                                                                        549,675.51      0.24%                     22     0.25%


                                                                        226,675,939.85                        8,740


e. “Portfolio Loans by Goods Category”
The distribution of current principal balances for retail assets by goods category at the relevant quarter
end.

Retail loans
Portfolio Loans by Goods Category


                                                            Current Principal Balance      Per cent.     Number             Per cent.


Carpets & curtains                                                            25,899.75      0.92%                     14     0.47%
Furniture                                                                    965,607.68     34.13%            1,811          61.14%
Kitchens & Conservatories                                                    975,421.00     34.48%                 387       13.07%
Motability Scooters                                                                    -     0.00%                 -          0.00%
Other                                                                        862,405.47     30.48%                 750       25.32%


                                                                           2,829,333.90                       2,962




f. “Portfolio Loans by Product type”
The distribution of current principal balances by product type at the relevant quarter end.

Retail loans
Portfolio Loans by Product type


                                                             Current Principal Balance     Per cent.   Number                Per cent.


Deferred payment loans                                                             -          0.00%       -                    0.00%
Non Deferred                                                              2,829,333.90     100.00%      2,962                100.00%


                                                                          2,829,333.90                  2,962


g. “Portfolio Loans Distribution by Current Principal Balance outstanding”
The distribution of assets by current principal balances at the relevant quarter end.

Secured Loans
Portfolio Loans Distribution by Current Principal Balance outstanding


                                                             Current Principal Balance     Per cent.   Number                Per cent.


Under £20,000                                                            42,389,406.58      18.70%      3,645                 41.70%
£20,000 to £29,999                                                       53,299,005.27      23.51%      2,144                 24.53%
£30,000 to £39,999                                                       47,929,081.09      21.14%      1,391                 15.92%
£40,000 to £49,999                                                       37,504,882.96      16.55%       840                   9.61%
£50,000 to £59,999                                                       21,197,173.18        9.35%      390                   4.46%
£60,000 to £69,999                                                       10,528,516.28        4.64%      163                   1.86%
£70,000 to £79,999                                                        7,567,304.09        3.34%      102                   1.17%
£80,000 to £89,999                                                        2,541,373.21        1.12%           30               0.34%
£90,000 to £99,999                                                        1,694,468.29        0.75%           18               0.21%
£100,000 and above                                                        2,024,728.90        0.89%           17               0.19%


                                                                        226,675,939.85                  8,740


                                                                                                                                   61
        Glossary of Terms
h. “Portfolio Loans Distribution by Annual Yield to Issuer”
The distribution of assets by interest rate charged to borrowers at the relevant quarter end.

Secured Loans
Portfolio Loans Distribution by Annual Yield to Issuer


                                                         Current Principal Balance   Per cent.   Number      Per cent.


Under 7.00%                                                         25,914,971.52     11.43%       655         7.49%
7.00% to 7.99%                                                      41,681,528.90     18.39%      1,160       13.27%
8.00% to 8.99%                                                      47,820,467.79     21.10%      1,470       16.82%
9.00% to 9.99%                                                      55,297,353.78     24.39%      2,574       29.45%
10.00% to 10.99%                                                    26,996,995.23     11.91%      1,291       14.77%
11.00% to 11.99%                                                    20,535,113.34      9.06%       998        11.42%
12.00% to 12.99%                                                     5,332,016.44      2.35%       409         4.68%
13.00% to 13.99%                                                     1,408,818.93      0.62%            89     1.02%
14.00% to 14.99%                                                     1,654,083.40      0.73%            89     1.02%
15.00% and over                                                         34,590.52      0.02%            5      0.06%


                                                                  226,675,939.85                  8,740


i. “Portfolio Loans Distribution by Remaining Term”
The distribution of assets by remaining term (in months) at the relevant quarter end.

Secured Loans
Portfolio Loans Distribution by Remaining Term


                                                         Current Principal Balance   Per cent.   Number      Per cent.


0 to 12 months                                                        157,518.91       0.07%            76     0.87%
13 to 24 months                                                       615,999.17       0.27%       116         1.33%
25 to 36 months                                                      2,784,115.69      1.23%       362         4.14%
37 to 48 months                                                      5,080,922.23      2.24%       416         4.76%
49 to 60 months                                                      3,960,971.05      1.75%       267         3.05%
61 to 72 months                                                      6,498,213.83      2.87%       379         4.34%
73 to 84 months                                                      7,942,291.33      3.50%       369         4.22%
85 to 96 months                                                     13,922,908.26      6.14%       682         7.80%
97 to 98 months                                                     17,176,761.35      7.58%       740         8.47%
99 to 120 months                                                     5,232,654.46      2.31%       202         2.31%
121 to 180 months                                                   55,118,197.04     24.32%      1,850       21.17%
181 to 240 months                                                   53,237,766.47     23.49%      1,605       18.36%
241 to 300 months                                                   54,947,620.06     24.24%      1,676       19.18%
more than 300 months                                                          -        0.00%        -          0.00%


                                                                  226,675,939.85                  8,740




                                                                                                                   62
      Glossary of Terms
j. “Portfolio Loans Distribution by Geographical Regions”
The distribution of assets split by region at the relevant quarter end, calculated by reference to the
property’s post code.

Secured Loans
Portfolio Loans Distribution by Geographical Regions


                                                       Current Principal Balance   Per cent.   Number      Per cent.


North                                                             12,469,187.29      5.50%       528         6.04%
North West                                                        22,808,062.30     10.06%       946        10.82%
Yorkshire                                                         17,731,359.57      7.82%       763         8.73%
East Midlands                                                     15,748,485.05      6.95%       623         7.13%
West Midlands                                                     18,514,948.94      8.17%       748         8.56%
East Anglia                                                        9,015,936.51      3.98%       361         4.13%
South East (exc Greater London)                                   59,595,449.15     26.29%      2,042       23.36%
South West                                                        16,320,324.54      7.20%       599         6.85%
Greater London                                                    10,154,177.78      4.48%       324         3.71%
Wales                                                             11,581,974.96      5.11%       487         5.57%
Scotland                                                          21,618,029.52      9.54%       937        10.72%
Nth. Ireland                                                      11,053,734.99      4.88%       380         4.35%
Unknown                                                               64,269.25      0.03%            2      0.02%


                                                                226,675,939.85                  8,740




k. “Portfolio Loans Distribution by Seasoning to Issuer”
The distribution of assets by year of origination at the relevant quarter end.

Secured Loans
Portfolio Loans Distribution by Seasoning to Issuer


                                                       Current Principal Balance   Per cent.   Number      Per cent.


                          1996                                              -        0.00%        -          0.00%
                          1997                                              -        0.00%        -          0.00%
                          1998                                              -        0.00%        -          0.00%
                          1999                                              -        0.00%        -          0.00%
                          2000                                              -        0.00%        -          0.00%
                          2001                                      671,194.06       0.30%            70     0.80%
                          2002                                     2,230,739.80      0.98%       131         1.50%
                          2003                                    10,301,058.07      4.54%       467         5.34%
                          2004                                    14,395,394.20      6.35%       541         6.19%
                          2005                                    16,385,539.83      7.23%       536         6.13%
                          2006                                    20,311,602.11      8.96%       708         8.10%
                          2007                                    41,177,176.83     18.17%      1,471       16.83%
                          2008                                  100,361,199.68      44.28%      4,056       46.41%
                          2009                                    20,842,035.27      9.19%       760         8.70%


                                                                226,675,939.85                  8,740




                                                                                                                 63
        Glossary of Terms
l. “Portfolio Loans Distribution by Months in arrears”
The distribution of assets by arrears bands.

Secured loans
Portfolio Loans Distribution by Months in arrears


                                                    Current Principal Balance   Per cent.   Number   Per cent.


<=1 month                                                    198,578,021.56      87.60%      7,768    88.88%
>1 <=2 months                                                   8,911,328.37      3.93%       311      3.56%
>2 <=3 months                                                   5,396,896.19      2.38%       183      2.09%
>3 <=4 months                                                   3,299,182.53      1.46%       125      1.43%
>4 <=5 months                                                   2,008,836.95      0.89%        75      0.86%
>5 <=6 months                                                   1,480,784.89      0.65%        54      0.62%
>6 <=7 months                                                   2,338,508.25      1.03%        75      0.86%
>7 <=8 months                                                   1,266,075.46      0.56%        43      0.49%
>8 <=9 months                                                   1,047,867.56      0.46%        31      0.35%
>9 <=10 months                                                  1,005,198.87      0.44%        32      0.37%
>10 <=11months                                                   581,485.24       0.26%        20      0.23%
>11 <=12months                                                   761,753.98       0.34%        23      0.26%


                                                             226,675,939.85                  8,740




The investor reports, pool tables and summary section can all be found on the Paragon website
http://www.paragon-group.co.uk/




                                                                                                           64
      Glossary of Terms

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:6
posted:3/20/2011
language:English
pages:65