As far back as October 2013, the FCA announced its aversion to bridging being used for credit repair through Linda Woodall, Director of Mortgages and Consumer Lending: “So, for example, where a bridging loan is sold for credit repair purposes, unless the customer can provide evidence that a mainstream lender will offer them a mortgage at the end of the bridge, we will consider this to be a breach of our rules.”

In a speech at the ASTL conference last week, Lynda Blackwell of the FCA said that she knew "at least one company" which advertised bridging intended for credit repair. However, a simple Google search would have revealed just under a dozen. 

In regards to the subject, she said: “Although we do not have data specific to [the] bridging sector, we do have lots of data about the mortgage market more generally, and this morning I want to spend a little time looking at the post-MMR landscape and why that might give rise to some concerns for us about the bridging sector. 

“Because there were a number of structural changes to the first-charge market pushing [out] the consumers, certain types of consumers in particular, the credit-constrained and the highly indebted may turn to other financing options including bridging finance...”

Upon discovering at least 11 firms currently advertising the use of bridging loans intended for credit repair, B&C spoke to some of these outfits in light of the recent comment from the regulator. 

A spokesman from KIS Bridging Loans who didn't want his full name to be disclosed said he was surprised that credit repair was still advertised on the website and added that it will be taken down shortly.

Baker Financial was amongst other firms which promoted debt consolidation and credit repair as uses for bridging loans online at the time this article went to press. However, they couldn't be reached at the time of publishing.

Upon questioning, Shire Financial Management did not give a definitive answer to B&C’s phone inquiry.

Other companies such as Blemain Finance did not reply by press time, but this article will be updated as soon as they do.

Seven other firms were also uncovered to be advertising bridging loans as a suitable tool for credit repair. 

Industry sources have confirmed that bridging finance has, in the past, been applied as a successful credit repair tool.

Alastair Ewing from Blimey Loans told B&C that his company in fact stopped offering bridges for credit repair because of FCA guidelines. 

Masthaven Bridging Finance is understood to have advertised credit repair as a suitable purpose for bridging up until the end of August 2014.

Update: As of the 23/09/2014 Baker Financial no longer specified credit repair as a suitable purpose for bridging loans on its website. 

Update: