Adds Bank of England's response in paragraphs 4 and 5

March 6 (Reuters) - The Bank of England is questioning lenders including Barclays BARC.L about their exposure to collapsed UK-based mortgage lender Market Financial Solutions (MFS), the Financial Times reported on Friday, citing people familiar with the matter.

Officials at the central bank's Prudential Regulation Authority (PRA) have requested information from lenders about funds they extended to the Mayfair-based bridging loan provider, and are concerned banks may not have carried out sufficient due diligence, the report said.

MFS was placed into administration last week following allegations of financial irregularities and mismanagement, prompting concerns over banks' and private credit funds' exposure to the lender.

"We are constantly monitoring the financial system and wider markets and stay in close contact with firms. It is the responsibility of firms to manage the risks to which they are exposed," a spokesperson for the BoE said in an email to Reuters.

The central bank in the email also said it regularly stress tests banks and insurers and had launched a system-wide exercise examining how riskier forms of non-bank lending behave under stress and the potential knock-on effects for UK financial stability.

Barclays is owed 495 million pounds ($662.61 million) from its exposure to MFS, Reuters reported on Wednesday, citing a source familiar with the matter.

The PRA has not yet launched a formal investigation, though it has the power to impose fines and restrictions on banks that breach its rules, the FT reported.

Barclays did not immediately respond to a Reuters request for comment.

($1 = 0.7470 pounds)