FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Registrants
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May, 2004
GRANITE MORTGAGES 03-1 PLC
(Translation of registrant's name into English)
Fifth Floor, 100 Wood Street,
London EC2V 7EX, England
(Address of principal executive offices)
GRANITE FINANCE TRUSTEES LIMITED
(Translation of registrant's name into English)
22 Grenville Street, St Helier,
Jersey JE4 8PX, Channel Islands
(Address of principal executive offices)
GRANITE FINANCE FUNDING LIMITED
(Translation of registrant's name into English)
69 Park Lane,
Croydon CR9 1TQ, England
(Address of principal executive offices)
Indicate by check mark whether the registrants file or will file annual
reports under cover Form 20-F or Form 40-F
Form 20-F.....X....Form 40-F.............
Indicate by check mark whether the registrants by furnishing the
information contained in this Form are also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.
Yes............No.......X...........
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned, thereunto duly authorized.
GRANITE MORTGAGES 03-1 PLC
By: /s/ Clive Rakestrow
------------------------------------
Name: L.D.C. Securitisation Director No. 1
Limited by its authorized person Clive
Rakestrow for and on its behalf
Title: Director
Date: July 8, 2004
GRANITE FINANCE FUNDING LIMITED
By: /s/ Jonathan David Rigby
-----------------------------------
Name: Jonathan David Rigby
Title: Director
Date: July 8, 2004
GRANITE FINANCE TRUSTEES LIMITED
By: /s/ Daniel Le Blancq
-----------------------------------
Name: Daniel Le Blancq
Title: Director
Date: July 8, 2004
2
INVESTORS' MONTHLY REPORT
GRANITE MORTGAGES 03-1 PLC
Monthly Report re: Granite Mortgages 01-1 Plc, Granite Mortgages 01-2 Plc,
Granite Mortgages 02-1 Plc Granite Mortgages 02-2 Plc, Granite Finance
Trustees Limited, Granite Mortgages 03-2 Plc, Granite Mortgages 03-3 Plc
Granite Mortgages 04-1 Plc, Granite Mortgages 04-2 Plc and Granite Finance
Funding Limited
Period 1 May 2004 - 31 May 2004
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.
Mortgage Loans
Number of Mortgage Loans in Pool 246,272
Current Balance (GBP)19,862,945,308
Last Months Closing Trust Assets (GBP)19,806,197,097
Funding share (GBP)18,651,521,741
Funding Share Percentage 93.90%
Seller Share* (GBP)1,211,423,567
Seller Share Percentage 6.10%
Minimum Seller Share (Amount)* (GBP)914,659,299
Minimum Seller Share (% of Total) 4.60%
Excess Spread last quarter annualised (% of Total) 0.26%
* Please see the Additional Notes to the Investor Reports
Arrears Analysis of Non Repossessed Mortgage Loans
Number Principal ((GBP)) Arrears ((GBP)) By Principal (%)
< 1 Month 242,575 19,579,277,969 0 98.57%
> = 1 < 3 Months 3,058 237,766,147 2,029,804 1.20%
> = 3 < 6 Months 496 35,949,117 880,304 0.18%
> = 6 < 9 Months 121 8,412,998 375,190 0.04%
> = 9 < 12 Months 18 1,207,581 76,246 0.01%
> = 12 Months 4 331,496 29,944 0.00%
Total 246,272 19,862,945,308 3,391,488 100.00%
Properties in Possession
Number Principal ((GBP)) Arrears ((GBP))
Total (since inception) 169 9,344,253 450,853
Properties in Possession 71
Number Brought Forward 57
Repossessed (Current Month) 14
Sold (since inception) 98
Sold (current month) 13
Sale Price / Last Loan Valuation 1.11
Average Time from Possession to Sale (days) 125
Average Arrears at Sale (GBP)2,350
Average Principal Loss (Since inception)* (GBP)186
Average Principal Loss (current month)** (GBP)142
MIG Claims Submitted 8
MIG Claims Outstanding 1
Average Time from Claim to Payment 59
*This figure is calculated taking the cumulative principal losses since inception pre MIG claims
divided by the number of properties sold since inception.
**This figure is calculated taking the cumulative principal losses for the current month pre MIG
claims divided by the number of properties sold in the current month. Note: The arrears analysis and
repossession information is at close of business for the report month
Substitution
Number Principal ((GBP))
Substituted this period 10,603 (GBP)999,998,805
Substituted to date (since 26 March 2001) 404,868 (GBP)32,424,779,771
CPR Analysis
Monthly Annualised
Current Month CPR Rate 4.84% 44.67%
Previous Month CPR Rate 5.13% 46.85%
Weighted Average Seasoning (by value) Months 23.46
Weighted Average Remaining Term (by value) Years 20.20
Average Loan Size (GBP)80,655
Weighted Average LTV (by value) 75.47%
Weighted Average Indexed LTV (by value) 62.05%
Non Verified (by value) 30.78%
Product Breakdown
Fixed Rate (by balance) 49.43%
Together (by balance) 25.83%
Capped (by balance) 1.32%
Variable (by balance) 20.54%
Tracker (by balance) 2.88%
Total 100.0%
Geographic Analysis
Number % of Total Value ((GBP)) % of Total
East Anglia 5,129 2.08% 419,108,146 2.11%
East Midlands 17,750 7.21% 1,283,146,267 6.46%
Greater London 29,137 11.83% 3,899,096,164 19.63%
North 30,694 12.46% 1,636,706,693 8.24%
North West 34,055 13.83% 2,192,869,162 11.04%
Scotland 24,507 9.95% 1,507,597,549 7.59%
South East 35,772 14.53% 3,962,657,589 19.95%
South West 15,733 6.39% 1,410,269,117 7.10%
Wales 10,514 4.27% 659,449,784 3.32%
West Midlands 16,280 6.61% 1,229,516,315 6.19%
Yorkshire 26,701 10.84% 1,660,542,228 8.36%
Total 246,272 100% 19,862,945,308 100%
LTV Levels Breakdown
Number Value ((GBP)) % of Total
0% < 25% 8,048 311,848,241 1.57%
> = 25% < 50% 28,178 1,976,363,058 9.95%
> = 50% < 60% 18,163 1,551,296,029 7.81%
> = 60% < 65% 10,755 973,284,320 4.90%
> = 65% < 70% 12,404 1,158,009,711 5.83%
> = 70% < 75% 17,795 1,608,898,570 8.10%
> = 75% < 80% 18,711 1,976,363,058 9.95%
> = 80% < 85% 25,336 2,482,868,164 12.50%
> = 85% < 90% 36,645 2,814,579,350 14.17%
> = 90% < 95% 53,644 3,901,082,458 19.64%
> = 95% < 100% 16,434 1,100,407,170 5.54%
> = 100% 159 7,945,178 0.04%
Total 246,272 19,862,945,308 100.0%
Repayment Method
Number Value ((GBP)) % of Total
Endowment 30,705 2,244,512,820 11.30%
Interest Only 27,611 3,702,453,005 18.64%
Pension Policy 676 67,534,014 0.34%
Personal Equity Plan 1,342 97,328,432 0.49%
Repayment 185,938 13,751,117,037 69.23%
Total 246,272 19,862,945,308 100.00%
Employment Status
Number Value ((GBP)) % of Total
Full Time 217,376 16,573,641,565 83.44%
Part Time 3,047 178,766,508 0.90%
Retired 508 15,890,356 0.08%
Self Employed 22,954 2,983,414,385 15.02%
Other 2,387 111,232,494 0.56%
Total 246,272 19,862,945,308 100.00%
NR Current Existing Borrowers' SVR 6.29%
Effective Date of Change 1 May 2004
Notes Granite Mortgages 03-1 plc
Outstanding Rating Reference Rate Margin
Moodys/S&P/Fitch
Series 1
A1 $0 P-1/A-1+/F1+ 1.11% -0.01%
A2 $1,130,710,240 Aaa/AAA/AAA 1.34% 0.19%
A3** $276,908,642 Aaa/AAA/AAA N/A 0.40%
B $42,000,000 Aa3/AA/AA 1.58% 0.43%
C $56,000,000 Baa2/BBB/BBB 2.60% 1.45%
Series 2
A (euro)900,000,000 Aaa/AAA/AAA 2.29% 0.24%
B (euro)62,000,000 Aa3/AA/AA 2.48% 0.43%
C (euro)94,500,000 Baa2/BBB/BBB 3.50% 1.45%
Series 3
A (GBP)665,000,000 Aaa/AAA/AAA 4.62% 0.24%
B (GBP)31,000,000 Aa3/AA/AA 4.81% 0.43%
C (GBP)41,000,000 Baa2/BBB/BBB 5.83% 1.45%
** Reference rate is determined based on the avergae daily US Federal Funds rate and is calculated
in arrears. Credit Enhancement
% of Notes Outstanding
Class B Notes ((GBP)Equivalent) (GBP)97,837,647 4.14%
Class C Notes ((GBP)Equivalent) (GBP)137,914,263 5.83%
% of Funding Share
Class B Notes ((GBP)Equivalent) (GBP)97,837,647 0.52%
Class C Notes ((GBP)Equivalent) (GBP)137,914,263 0.74%
Granite Mortgages 03-1 Reserve Fund Requirement (GBP)45,000,000 0.24%
Balance Brought Forward (GBP)30,531,520 0.16%
Drawings this Period (GBP)0 0.00%
Excess Spread this Period (GBP)2,278,734 0.01%
Funding Reserve Fund Top-up this Period* (GBP)0 0.00%
Current Balance (GBP)32,810,254 0.18%
Funding Reserve Balance (GBP)53,700,000 0.29%
Funding Reserve % 1.0% NA
*Top-ups only occur at the end of each quarter.
Additional Notes to the Investor Reports
The Overcollateralisation test will be breached on any distribution date where
the aggregate current balance of mortgage loans on such distribution date is
less than an amount equal to the product of 1.05 and the principal amount
outstanding of all notes of all issuers on such distribution date. The
principal amount outstanding of such notes will be calculated on a straight
line basis by applying the appropriate constant payment rate applicable to
each series of notes on a monthly, rather than quarterly, basis.
A non asset trigger event will occur if the current seller share is equal to
or less the minimum seller share for two consecutive months. The one month
cure period will now allow the seller to substitute new loans into the trust
to meet the minimum seller requirement.
The notes may be redeemed at the option of the issuer if on the payment date
falling on or after July 2008, the New Basel Capital Accord has been
implemented in the United Kingdom
A arrears trigger event will occur if the outstanding principal balance of 90+
day arrears in the trust exceed 2%. In the event of a arrears trigger the
Granite Mortgages 04-2 issuer reserve fund will step up to 1.415%. This
trigger event is curable.
A issuer non call trigger event will occur if any of the issuers are not
called on their step up and call dates. In the event of a issuer non call
trigger the Granite Mortgages 04-2 issuer reserve fund target will step up by
0.275% and the funding reserve target will step up by 0.10%.
A accelerated controlled amortisation trigger will occur if any of the issuers
are not called on their step up and call dates. In the event of a accelerated
controlled amortisation trigger all Granite Mortgages 04-2 tranches become
pass through securities.