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 July, 2004
GRANITE MORTGAGES 04-2 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 04-2 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: September 9, 2004
GRANITE FINANCE FUNDING LIMITED
By: /s/ Jonathan David Rigby
------------------------------------
Name: Jonathan David Rigby
Title: Director
Date: September 9, 2004
GRANITE FINANCE TRUSTEES LIMITED
By: /s/ Daniel Le Blancq
------------------------------------
Name: Daniel Le Blancq
Title: Director
Date: September 9, 2004
INVESTORS' MONTHLY REPORT
GRANITE MORTGAGES 04-2 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 03-2 Plc,
Granite Mortgages 03-3 Plc, Granite Mortgages 04-1 Plc and Granite Finance
Funding Limited
Period 1 July 2004 - 31 July 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
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Number of Mortgage Loans in Pool 227,242
Current Balance - Trust Mortgage Assets (GBP)18,405,966,225
Current Balance - Trust Cash and other Assets (GBP)956,925,457
Last Months Closing Trust Assets (GBP)19,275,323,145
Funding share (GBP)18,238,057,907
Funding Share Percentage 94.19%
Seller Share* (GBP)1,124,833,775
Seller Share Percentage 5.81%
Minimum Seller Share (Amount)* (GBP)904,605,102
Minimum Seller Share (% of Total) 4.67%
Excess Spread last quarter annualised (% of Total) 0.22%
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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 223,831 18,136,116,941 0 98.53%
> = 1 < 3 Months 2,765 223,165,280 1,984,697 1.21%
> = 3 < 6 Months 487 35,453,147 880,313 0.19%
> = 6 < 9 Months 121 8,362,816 372,254 0.05%
> = 9 < 12 Months 33 2,482,693 138,590 0.01%
> = 12 Months 5 385,348 29,614 0.00%
Total 227,242 18,405,966,225 3,405,468 100.00%
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Properties in Possession
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Number Principal (GBP) Arrears (GBP)
Total (since inception) 200 11,108,872 545,192
Properties in Possession 69
Number Brought Forward 49
Repossessed (Current Month) 20
Sold (since inception) 131
Sold (current month) 17
Sale Price / Last Loan Valuation 1.07
Average Time from Possession to Sale (days) 136
Average Arrears at Sale (GBP)2,474
Average Principal Loss (Since inception)* (GBP)166
Average Principal Loss (current month)** (GBP)0
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 0 (GBP)0
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 4.72% 44.04%
Previous Month CPR Rate 5.53% 49.41%
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Weighted Average Seasoning (by value) Months 25.31
Weighted Average Remaining Term (by value) Years 19.99
Average Loan Size (GBP)80,997
Weighted Average LTV (by value) 74.93%
Weighted Average Indexed LTV (by value) 58.46%
Non Verified (by value) 31.55%
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Product Breakdown
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Fixed Rate (by balance) 47.76%
Together (by balance) 25.03%
Capped (by balance) 1.32%
Variable (by balance) 22.97%
Tracker (by balance) 2.92%
Total 100.0%
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Geographic Analysis
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Number % of Total Value (GBP) % of Total
East Anglia 4,720 2.08% 384,684,694 2.09%
East Midlands 16,335 7.19% 1,181,663,032 6.42%
Greater London 27,410 12.06% 3,677,512,052 19.98%
North 28,177 12.40% 1,503,767,441 8.17%
North West 31,345 13.79% 2,022,815,688 10.99%
Scotland 22,382 9.85% 1,367,563,291 7.43%
South East 33,240 14.63% 3,690,396,228 20.05%
South West 14,597 6.42% 1,312,345,392 7.13%
Wales 9,517 4.19% 598,193,902 3.25%
West Midlands 15,004 6.60% 1,137,488,713 6.18%
Yorkshire 24,515 10.79% 1,529,535,793 8.31%
Total 227,242 100% 18,405,966,225 100%
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LTV Levels Breakdown
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Number Value (GBP) % of Total
0% < 25% 8,103 309,220,233 1.68%
> = 25% < 50% 27,321 1,921,582,874 10.44%
> = 50% < 60% 17,288 1,474,317,895 8.01%
> = 60% < 65% 10,273 931,341,891 5.06%
> = 65% < 70% 11,607 1,080,430,217 5.87%
> = 70% < 75% 16,382 1,494,564,457 8.12%
> = 75% < 80% 17,345 1,842,437,219 10.01%
> = 80% < 85% 24,451 2,387,253,819 12.97%
> = 85% < 90% 32,212 2,492,167,827 13.54%
> = 90% < 95% 49,354 3,587,322,817 19.49%
> = 95% < 100% 12,723 876,123,992 4.76%
> = 100% 183 9,202,983 0.05%
Total 227,242 18,405,966,225 100.0%
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Repayment Method
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Number Value (GBP) % of Total
Endowment 28,210 2,061,468,217 11.20%
Interest Only 26,181 3,526,583,129 19.16%
Pension Policy 622 60,739,689 0.33%
Personal Equity Plan 1,236 90,189,235 0.49%
Repayment 170,993 12,666,985,956 68.82%
Total 227,242 18,405,966,225 100.00%
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Employment Status
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Number Value (GBP) % of Total
Full Time 200,094 15,306,401,513 83.16%
Part Time 2,798 161,972,503 0.88%
Retired 488 16,565,370 0.09%
Self Employed 21,608 2,817,953,429 15.31%
Other 2,254 103,073,411 0.56%
Total 227,242 18,405,966,225 100.00%
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NR Current Existing Borrowers' SVR 6.59%
Effective Date of Change 1 July 2004
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Notes Granite Mortgages 04-2 plc
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Outstanding Rating Reference Margin
Moodys/S&P/Fitch Rate
Series 1
A1 $1,120,400,000 P-1/A-1+/F1+ 1.3685300% 0.04%
A2 $1,322,800,000 Aaa/AAA/AAA 1.44% 0.07%
B $40,300,000 Aa3/AA/AA 1.54% 0.17%
M $33,200,000 A2/A/A 1.65% 0.28%
C $73,500,000 Baa2/BBB/BBB 2.07% 0.70%
Series 2
A1 (euro)1,340,000,000 Aaa/AAA/AAA 2.25% 0.14%
A2 (GBP)244,000,000 Aaa/AAA/AAA 4.82% 0.14%
B (euro)92,000,000 Aa3/AA/AA 2.38% 0.27%
M (euro)53,500,000 A2/A/A 2.51% 0.40%
C (euro)89,000,000 Baa2/BBB/BBB 2.91% 0.80%
Series 3
A (GBP)752,100,000 Aaa/AAA/AAA 4.84% 0.16%
B (GBP)38,900,000 Aa3/AA/AA 5.00% 0.32%
M (GBP)26,500,000 A2/A/A 5.15% 0.47%
C (GBP)48,500,000 Baa2/BBB/BBB 5.53% 0.85%
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Credit Enhancement
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% of Notes
Outstanding
Class B and M Notes ((GBP) Equivalent) (GBP)206,069,892 5.65%
Class C Notes ((GBP) Equivalent) (GBP)150,734,519 4.13%
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% of Funding
Share
Class B and M Notes ((GBP) Equivalent) (GBP)206,069,892 1.13%
Class C Notes ((GBP) Equivalent) (GBP)150,734,519 0.83%
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Granite Mortgages 04-2 Reserve Fund Requirement (GBP)44,900,000 0.25%
Balance Brought Forward (GBP)33,700,000 0.18%
Drawings this Period (GBP)0 0.00%
Excess Spread this Period (GBP)0 0.00%
Funding Reserve Fund Top-up this Period* (GBP)0 0.00%
Current Balance (GBP)33,700,000 0.18%
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Funding Reserve Balance (GBP)23,965,350 0.13%
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 ofall 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.
An arrears trigger event will occur if the outstanding principal balance of
90+ day arrears in the trust exceed 2%. In the event of an arrears trigger the
Granite Mortgages 04-2 issuer reserve fund will step up to 1.415%. This
trigger event is curable.
An 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 an 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%.
An 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 an
accelerated controlled amortisation trigger all Granite Mortgages 04-2
tranches become pass through securities.