Does a BBLS for a sole trader affect my personal finances?

Joshua212

Hi 
I have recently received the BBLS from HSBC into a new business account i set up with them. This is a sole trader account and not through any limited company. Because the loan is taken out in my name through the business which is a sole trader, does this affect my personal finances. For example if i was to get a personal mortgage, will they see or take into consideration i have a BBLS loan of say £35,000, and then have a negative impact on how much i can borrow? 

MinuteNoodles

As a sole trader your business finances do have an impact on your personal ones unlike when you operate as a Ltd company. The loan will be seen as a personal debt you owe because as a sole trader it is despite its name whereas if you'd been limited the debt would have been a liability of the limited company due to the fact that in law the limited company is a separate legal entity from the individual. However that's not to say it's all negativity as it may be treated differently by a lender but as it's a brand new scheme barely a month out of the gates I doubt that it's been tested with a personal loan or mortgage application yet. If you're looking at a mortgage you'll no doubt be using a specialist broker anyway so I would imagine they'll have more of an idea of how this will be treated.