Speaking at the Association of Short Term Lenders annual conference in London Blackwell praised the regulated market for its efforts in improving professionalism but said some practices, most notably using bridging as a credit repair tool, were a big concern.
She said: “The FCA regulated bridging market has come a long way but concerns remain about the market.
“One of our main concerns is that borrowers may be taking out bridging when a more suitable mainstream product is available.
“We have also seen it used as a credit repair product. However we see this use as too speculative unless there is a solid mortgage contract on the table for the exit.”
Blackwell said one unnamed regulated lender was currently offering this service on their website and said that if it was not updated the regulator would take action.
She also expressed her concerns about non-regulated firms and said the FCA was monitoring them despite their current status.
“Non-regulated bridging lenders remain a concern for us and we currently have a team monitoring them,” she said.
But she called on the market to help the regulator root out firms which engage in bad practice and said her team relies on market intelligence.
She added: “There are some responsible lenders out there but as with any industry there are irresponsible one and this continues to be a concern to us.”
