The Financial Conduct Authority is in the dark about 84% of bridging – the proportion it reckons is unregulated.
Speaking at the Association of Short Term Lenders conference today, Lynda Blackwell, the regulator’s mortgage sector manager, said: “We have no data on the unregulated side of the market.
“It could be around 84% of the sector and that goes largely under our radar.”
Blackwell raised concerns about firms treating regulated deals as unregulated despite borrowers planning to live in the property.
She added: “We have an unauthorised business team that deals with unauthorised lenders legally. We rely on the intelligence provided by the market to identify these firms.
“Please tell us if you come across bad practices and they will be investigated.”