Mortgage Securitisation

Royal Bank of Scotland Group PLC
23 May 2007



Royal Bank of Scotland plc - Residential Mortgage Securitisation


THE ROYAL BANK OF SCOTLAND GROUP PLANS SECURITISATION


23 May 2006


The Royal Bank of Scotland Group ('RBSG') is pleased to announce that The Royal
Bank of Scotland plc ('RBS') and National Westminster Home Loans Ltd plan to
securitise part of their UK residential mortgage loan portfolio under the RBSG's
Arran Residential Mortgage Funding programme. At December 2006 RBSG had an
estimated 6% share of the UK mortgage market with key brands being RBS, NatWest,
The One Account and First Active. This transaction will securitise RBS and
NatWest branded mortgages, and follows the successful securitisation of two
portfolios of RBS and NatWest branded mortgages totalling £11.25bn in 2006.


Marketing will take place over the next two to three weeks for a circa £4.5bn
issue to be placed in US Dollars, Euros and Sterling. The US$ tranche will
target US qualified institutional buyers under Rule 144A of the US Securities
Act. The Preliminary Prospectus for the issue will be published shortly.


This announcement should not be construed as an offer or solicitation to buy or
sell the securities described in the Preliminary Prospectus or any other
securities, or any interest in any securities, and nothing herein should be
construed as a recommendation or advice to invest in any securities. The
investments and investment services referred to herein are available only to
persons to whom this material may be lawfully delivered in accordance with
applicable securities laws. This includes any sale of securities in any State of
the United States in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the Securities Laws of any such
State. This material is not available to private customers within the meaning of
the rules of the Financial Services Authority.



For further information, please contact:


The Royal Bank of Scotland Group plc


Richard O'Connor                   Ron Huggett
Head of Investor Relations         Director, Capital Management & Securitisation
280 Bishopsgate                    280 Bishopsgate
London                             London
EC2M 4RB                           EC2M 4RB
Tel: [phone]           Tel: [phone]






                      This information is provided by RNS
            The company news service from the London Stock Exchange