ALBA 2007 – 1 plc - Irish Stock Exchange

WEIGHTED AVERAGE LIVES OF THE NOTES
Weighted average life refers to the average amount of time that will elapse from the date of issuance of
a security to the date of distribution to the investor of amounts distributed in net reduction of principal
of such security (assuming no losses). The weighted average lives of the Notes will be influenced by,
inter alia, the actual rate of redemption of the Mortgage Loans and the extent to which Available
Revenue Funds are sufficient to cover any Principal Deficiencies.
The model used in this Prospectus for the Mortgage Loans represents an assumed constant per annum
rate of prepayment ("CPR") each month relative to the then outstanding principal balance of a pool of
mortgages. CPR does not purport to be either an historical description of the prepayment experience of
any pool of mortgage loans or a prediction of the expected rate of prepayment of any mortgage loans,
including the Mortgage Loans to be included in the Completion Mortgage Pool.
The following tables were prepared based on the characteristics of the Mortgage Loans included in the
Mortgage Pool and the following additional assumptions (the "Modelling Assumptions"):
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
there are no arrears or enforcements;
no Mortgage Loan is sold by the Issuer;
no Principal Deficiency arises;
the Seller is not in breach of the terms of the Mortgage Sale Agreement;
no Mortgage Loan is repurchased by the Seller;
no Further Advances are made;
no Ported Mortgage Loans are granted;
no Converted Mortgage Loans are granted;
the portfolio mix of mortgage loan characteristics remains the same throughout the life of the
Notes;
following the expiry of the fixed rate/capped/discount period (if applicable), the Mortgage Rate
on each Mortgage Loan is equal to LIBOR plus a fixed margin, or the Bank of England repo
rate plus a fixed margin;
the Notes are issued on 18 June 2007 and all payments on the Notes are received on the final
day of every third calendar month commencing from 17 September 2007;
LIBOR is equal to 5.53 per cent. and is applied both to the aggregate Principal Amount
Outstanding of the Sterling Notes and the outstanding principal balance of the Mortgage Loans;
the Bank of England repo rate is equal to 5.25 per cent.;
the Mortgage Loans are subject to a constant annual rate of prepayment (unscheduled principal
receipts only) as shown in the table below;
the Notes are redeemed at their Principal Amount Outstanding on the Payment Date following
the Payment Date on which the aggregate Principal Amount Outstanding of the Notes is less
than 10 per cent. of the initial Principal Amount Outstanding of the Notes on the Issue Date;