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 Period April 1, 2004 to June 30, 2004
GRANITE MORTGAGES 03-2 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 03-2 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: August 16, 2004
GRANITE FINANCE FUNDING LIMITED
By: /s/ Jonathan David Rigby
------------------------------
Name: Jonathan David Rigby
Title: Director
Date: August 16, 2004
GRANITE FINANCE TRUSTEES LIMITED
By: /s/ Daniel Le Blancq
------------------------------
Name: Daniel Le Blancq
Title: Director
Date: August 16, 2004
2
INVESTORS' QUARTERLY REPORT
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GRANITE MORTGAGES 03-2 PLC
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Quarterly Report re: Granite Mortgages 01-1 Plc, Granite Mortgages 01-2 Plc,
Granite Mortgages 02-1 Plc Granite Mortgages 02-2 Plc, Granite Mortgages 03-1
Plc, Granite Finance Trustees Limited, Granite Mortgages 03-3 Plc Granite
Mortgages 04-1 Plc, Granite Mortgages 04-2 Plc and Granite Finance Funding
Limited Period 1 April 2004 - 30 June 2004
Mortgage Loans
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Number of Mortgage Loans in Pool 238,327
Current Balance - Trust Mortgage Assets (GBP)19,275,323,145
Current Balance - Trust Cash and other Assets (GBP)1,156,394,524
Last Months Closing Trust Assets (GBP)19,862,945,308
Funding share (GBP)18,651,521,741
Funding Share Percentage 91.29%
Seller Share* (GBP)1,780,195,928
Seller Share Percentage 8.71%
Minimum Seller Share (Amount)* (GBP)934,316,452
Minimum Seller Share (% of Total) 4.57%
Excess Spread last quarter annualised (% of Total) 0.26%
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* Please see the Additional Notes to the Investor Reports
Arrears Analysis of Non Repossessed Mortgage Loans
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Number Principal (GBP) Arrears (GBP) By Principal (%)
< 1 Month 234,934 19,017,798,678 0 98.66%
> = 1 < 3 Months 2,730 210,236,782 1,715,351 1.09%
> = 3 < 6 Months 515 37,419,915 892,529 0.19%
> = 6 < 9 Months 114 7,537,264 342,604 0.04%
> = 9 < 12 Months 29 1,953,249 112,126 0.01%
> = 12 Months 5 377,257 31,621 0.00%
Total 238,327 19,275,323,145 3,094,231 100.00%
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Properties in Possession
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Number Principal (GBP) Arrears (GBP)
Total (since inception) 180 9,973,385 482,167
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Properties in Possession 66
Number Brought Forward 55
Repossessed (Current Month) 11
Sold (since inception) 114
Sold (current month) 16
Sale Price / Last Loan Valuation 1.11
Average Time from Possession to Sale (days) 127
Average Arrears at Sale (GBP)2,388
Average Principal Loss (Since inception)* (GBP)191
Average Principal Loss (current month)** (GBP)219
MIG Claims Submitted 8
MIG Claims Outstanding 1
Average Time from Claim to Payment 59
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* 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
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Number Principal (GBP)
Substituted this period 4,998 (GBP)483,272,754
Substituted to date (since 26 March 2001) 409,866 (GBP)32,908,052,525
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CPR Analysis
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Monthly Annualised
Current Month CPR Rate 5.53% 49.41%
Previous Month CPR Rate 4.84% 44.67%
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Weighted Average Seasoning (by value) Months 24.37
Weighted Average Remaining Term (by value) Years 20.12
Average Loan Size (GBP)80,878
Weighted Average LTV (by value) 75.18%
Weighted Average Indexed LTV (by value) 62.15%
Non Verified (by value) 31.17%
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Product Breakdown
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Fixed Rate (by balance) 50.20%
Together (by balance) 25.37%
Capped (by balance) 1.30%
Variable (by balance) 20.16%
Tracker (by balance) 2.97%
Total 100.0%
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Geographic Analysis
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Number % of Total Value ((GBP)) % of Total
East Anglia 4,975 2.09% 404,781,786 2.10%
East Midlands 17,169 7.20% 1,241,330,811 6.44%
Greater London 28,513 11.96% 3,820,369,047 19.82%
North 29,676 12.45% 1,586,359,095 8.23%
North West 32,996 13.84% 2,127,995,675 11.04%
Scotland 23,185 9.73% 1,416,736,251 7.35%
South East 34,786 14.60% 3,862,774,758 20.04%
South West 15,298 6.42% 1,374,330,540 7.13%
Wales 10,136 4.25% 636,085,664 3.30%
West Midlands 15,777 6.62% 1,195,070,035 6.20%
Yorkshire 25,816 10.83% 1,609,489,483 8.35%
Total 238,327 100% 19,275,323,145 100%
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LTV Levels Breakdown
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Number Value (GBP) % of Total
0% < 25% 8,174 314,187,767 1.63%
> = 25% < 50% 28,053 1,975,720,622 10.25%
> = 50% < 60% 17,858 1,524,678,061 7.91%
> = 60% < 65% 10,609 959,911,093 4.98%
> = 65% < 70% 12,144 1,133,389,001 5.88%
> = 70% < 75% 17,143 1,555,518,578 8.07%
> = 75% < 80% 18,093 1,917,894,653 9.95%
> = 80% < 85% 25,133 2,461,458,766 12.77%
> = 85% < 90% 34,564 2,661,922,126 13.81%
> = 90% < 95% 51,962 3,781,818,401 19.62%
> = 95% < 100% 14,414 977,258,883 5.07%
> = 100% 180 11,565,194 0.06%
Total 238,327 19,275,323,145 100.0%
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Repayment Method
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Number Value (GBP) % of Total
Endowment 29,561 2,164,618,789 11.23%
Interest Only 27,089 3,644,963,607 18.91%
Pension Policy 649 63,608,566 0.33%
Personal Equity Plan 1,296 92,521,551 0.48%
Repayment 179,732 13,309,610,632 69.05%
Total 238,327 19,275,323,145 100.00%
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Employment Status
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Number Value (GBP) % of Total
Full Time 210,102 16,056,344,180 83.30%
Part Time 2,939 171,550,376 0.89%
Retired 504 17,347,791 0.09%
Self Employed 22,448 2,924,066,521 15.17%
Other 2,334 106,014,277 0.55%
Total 238,327 19,275,323,145 100.00%
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NR Current Existing Borrowers' SVR 6.29%
Effective Date of Change 1 May 2004
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Notes Granite Mortgages 03-2 plc
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Outstanding Rating Reference Rate Margin
Moodys/S&P/Fitch
Series 1
A1 $557,668,690 Aaa/AAA/AAA 1.23% 0.08%
A2 $1,006,000,000 Aaa/AAA/AAA 1.31% 0.16%
A3 $500,000,000 Aaa/AAA/AAA 1.40% 0.25%
B $76,500,000 Aa3/AA/AA 1.64% 0.49%
C $10,500,000 Baa2/BBB/BBB 2.70% 1.55%
Series 2
A (euro)300,000,000 Aaa/AAA/AAA 2.30% 0.25%
B (euro)72,900,000 Aa3/AA/AA 2.54% 0.49%
M (euro)52,300,000 A2/A/A 2.80% 0.75%
C1 (euro)16,000,000 Baa2/BBB/BBB 5.20% Fixed until 07/10
C2 (euro)65,500,000 Baa2/BBB/BBB 3.60% 1.55%
Series 3
A (GBP)352,280,000 Aaa/AAA/AAA 4.625% Fixed until 07/10
C (GBP)15,000,000 Baa2/BBB/BBB 5.93% 1.55%
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Credit Enhancement
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% of Notes Outstanding
Class B and M Notes ((GBP)Equivalent) (GBP)137,050,418 6.63%
Class C Notes ((GBP)Equivalent) (GBP)79,770,314 3.86%
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% of Funding Share
Class B and M Notes ((GBP)Equivalent) (GBP)137,050,418 0.73%
Class C Notes ((GBP)Equivalent) (GBP)79,770,314 0.43%
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Granite Mortgages 03-2 Reserve Fund Requirement (GBP)35,000,000 0.19%
Balance Brought Forward (GBP)20,267,627 0.11%
Drawings this Period (GBP)0 0.00%
Excess Spread this Period (GBP)1,956,753 0.01%
Funding Reserve Fund Top-up this Period* (GBP)0 0.00%
Current Balance (GBP)22,224,380 0.12%
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Funding Reserve Balance (GBP)42,299,079 0.23%
Funding Reserve % 1.0% NA
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*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.