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Politically Exposed Person’s Mortgage

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No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: October 20, 2021

A politically exposed person is someone with a prominent public position or function, such as an MP, a high-ranking military officer or a Head of State. But what does holding this status mean for mortgage applications and will it affect your chances of approval?

In our guide to mortgages for politically exposed people, we explain how mortgage lender assessments can differ for a politically exposed person, why you need a broker if you hold this status and much more.

What politically exposed status means if you’re buying a house

As a politically exposed person, you might find it more difficult and time-consuming to buy a house if you need a mortgage to cover the cost. This is because some mortgage lenders, such as Clydesdale Bank and Accord Mortgages, reject applications from politically exposed people outright.

The good news, however, is that there’s a fair selection of mortgage providers to choose from if you’re politically exposed, but your political status will likely mean undergoing extra checks. Information about your political status will not appear on your credit report, but lenders often check a separate register to fully understand the potential risks involved.

Why mortgage lenders carry out extra checks

Mortgage lenders are obliged to take a closer look at applicants with politically exposed status since the Financial Conduct Authority (FCA) states it as a requirement.

Politically exposed people are generally considered to be more vulnerable to financial crime, such as…

  • Bribery
  • Money laundering
  • General abuse of public office for personal gain

As a result of these extra checks, a mortgage application for a politically exposed person can take longer than it would for somebody without this status. This is one of the reasons why people who fall into this category need a mortgage broker, as they can shave time off the process by helping you prepare your documents and introducing you to the right lender, first time.

What is a politically exposed person’s mortgage and how are they different?

A politically exposed person’s mortgage is simply a mortgage loan for someone with politically exposed status. They aren’t much different to standard residential mortgages, except they can take longer to process due to most lenders insisting on extra background checks.

There’s a good chance the mortgage lender will request extra scrutiny from their underwriting team to establish the full risk your political status might pose. These additional checks might focus on your addresses, Electoral Roll information, occupation, date of birth, and more, but the outcome of them is unlikely to mean a higher interest rate.

Your chances of rejection for a politically exposed person’s mortgage are, however, higher than they’d be for someone without this status if you were to head into the market without professional guidance, purely because there are fewer lenders to choose from.

When you apply for a mortgage with politically exposed status, the general checks and eligibility assessments you’ll need to go through so the lender can establish your creditworthiness are the same as they would be for a non-politically-exposed applicant.

You can read about the general process in our guide to mortgage applications.

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How to get the best mortgage deal if you’re politically exposed’

Here’s how to get your mortgage application off on the best possible track, so you’re well placed to save time and end up with the best interest rate available…

  • Have your documents ready: Given that these mortgages can take longer to process, it’s a good idea to have the paperwork you’ll need to hand before you apply. You can find a full list of the documents you will need in our mortgage application guide.
  • Download your credit reports: Downloading your credit reports will give you the chance to challenge any inaccuracies and have any outdated information removed. Optimising your credit report could boost your chances of landing favourable rates.
  • Find the right mortgage broker: This is a recommended step that could save you time and money in the long run. A mortgage broker who specialises in politically exposed person’s mortgage applications could help you get approved faster and secure a more favourable interest rate by matching you with the lender who’s the best fit for you.

Your mortgage broker will guide you through the rest of the application process from here. They may suggest applying for an agreement in principle as the next step, although some mortgage lenders skip this stage and move straight to full application.

Get matched with a mortgage broker today

Finding the right broker is crucial if you’re applying for a mortgage with politically exposed status since an expert who understands your needs can boost your chances of success. They will offer you bespoke advice, guide you through the application and negotiate the best rate for you.

We’ve made it our mission to make sure people get the right mortgage advice from an expert who’s tailor-made for them. We offer a free broker-matching service that will quickly assess your needs and circumstances to pair you up with an advisor who has the knowledge and expertise you need. In this case, someone who arranges mortgages for politically exposed people regularly.

Call us on 0808 189 2301 or fill out a quick online enquiry form and we’ll match you with a mortgage who specialises in mortgages for politically exposed people today.

FAQs

Will it affect my mortgage application if I share a name with a politically exposed person?

Sharing a name with a politically exposed person won’t affect your chances of getting a mortgage, nor will it impact your credit report. The mortgage lender will, however, need to carry out extra checks to verify your identity, so your application might take longer.

Can I have politically exposed status removed?

No. Even if you don’t hold politically exposed status yourself but share a name with somebody who does, lenders and other organisations will still need to carry out checks to make sure you aren’t that person. There is no need to be concerned about this, though. Sharing a name with a politically exposed person doesn’t affect your chances of getting a mortgage or impact your credit report at all.

Can I get a buy-to-let mortgage if I’m politically exposed?

Yes. There are a similar amount of lenders available for buy-to-let mortgages for politically exposed people compared to residential. Like with residential mortgages, the lender and underwriter will likely carry out extra checks to verify your identity, but the application process is otherwise the same.

See our guide to buy-to-let mortgages for criteria information and how to apply.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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