Power of Attorney

How Does a Power of Attorney Affect a Mortgage?

Discover how a Power of Attorney affects mortgages. Learn about types of POAs, impact on approval, repayment, risks & considerations.

What is a Power of Attorney?

A Power of Attorney (POA) is a legal document that grants someone the authority to act on behalf of another person. It can have implications in various areas of life, including mortgages.

If you’re considering using a POA in a mortgage transaction or are curious about how it might affect a mortgage, this blog post is for you. In this article, we’ll delve into the different types of POAs, their impact on mortgage approval, repayment, risks, and considerations.


An expert mortgage adviser on the phone speaking to a customer

Types of Power of Attorney

POAs come in different forms, including general, limited, durable, and springing POAs.

Each type has its own characteristics and implications in the context of mortgages.

General POAs grant broad powers to the attorney-in-fact, while limited POAs have specific and limited powers.

Durable POAs remain effective even if the grantor becomes incapacitated, and springing POAs only become effective under certain conditions.

Understanding the nuances of each type is crucial when considering how a POA may affect a mortgage.

Mortgage Transactions and Power of Attorney

Using a POA in a mortgage transaction involves certain requirements and restrictions. Lenders may have specific guidelines and documentation requirements for borrowers who are utilizing a POA.

It’s important to be aware of these rules and ensure compliance to avoid potential issues. The roles and responsibilities of the borrower, the attorney-in-fact, and the lender must be clearly understood and coordinated to ensure a smooth mortgage process.

How a Power of Attorney Can Impact Mortgage Approval

The use of a POA in a mortgage transaction can impact the borrower’s ability to obtain approval. Lenders may have concerns about the attorney-in-fact’s authority and the authenticity of the POA.

The documentation and verification process may be more rigorous when a POA is involved, and borrowers need to be prepared to provide additional documentation and explanations to satisfy lender requirements.

Understanding these potential challenges can help borrowers navigate the mortgage approval process when using a POA.

Power of Attorney and Mortgage Repayment

The responsibility for mortgage repayment can also be affected by a POA. If the attorney-in-fact is responsible for managing the borrower’s finances, including making mortgage payments, it’s crucial to ensure that they fulfill their duties diligently. Failure to do so could have consequences, including potential default on the mortgage. Communication and coordination between the borrower, the attorney-in-fact, and the lender are key to ensuring timely and proper mortgage repayments.

Risks and Considerations with Power of Attorney and Mortgages

Using a POA in a mortgage transaction comes with potential risks and considerations. Fraud or abuse by the attorney-in-fact can pose significant risks to the borrower and lender. It’s crucial to exercise caution and choose a trustworthy and reliable attorney-in-fact.

Seeking legal and financial advice is also advisable to understand the legal implications and potential risks involved in using a POA in a mortgage transaction. Taking necessary precautions and safeguards can protect the interests of all parties involved.

Happy mortgage broker giving free mortgage advice over the phone



In conclusion, understanding how a Power of Attorney can affect a mortgage is crucial for borrowers, attorneys-in-fact, and lenders.

Familiarizing yourself with the different types of POAs, the impact on mortgage approval, repayment, and potential risks and considerations can help you navigate the complexities of using a POA in a mortgage transaction.

It’s essential to consult legal and financial professionals, comply with lender requirements, and communicate effectively to ensure a smooth and successful mortgage process when utilizing a POA.

It is highly recommended to work with mortgage professionals in this situation as not all lenders will accept POA mortgages. Explain your situation to a qualified professional so they can work out your options.

The information on this page is not tailored to any individual readers and should not be considered financial advice under any circumstances.

If you are seeking advice about a mortgage, you should consult a qualified professional.

You may also be interested in…


Because we know mortgages can be complicated if you go it alone.

Why match with a mortgage advisOr?

Orange Tick They are experienced, which can boost your chances of being approved.

Orange Tick They can guide you through the whole mortgage process.

Orange Tick They are able to access the whole market, including broker exclusive products.

Get Advice

Our matching service is free and there is no obligation to proceed with the advice.

By completing this form you agree to be contacted about your mortgage enquiry.


Evening Standard
Daily Record
Wales Online
The Sun

How does I NEED ADVICE work?

1st Stage how mortgage advice works

Fill out our quick form so we can match you with the perfect broker. It only takes a few minutes and won’t impact your credit score.

2nd Stage how mortgage advice works

We will match you to an expert mortgage advisor who can help you in your situation.

3rd Stage how mortgage advice works

An expert mortgage advisor will be in touch to guide you through every step of the process.


Calculate your monthly mortgage repayment.

Please note, this is a guide to how much you’d pay on a repayment mortgage, assuming your interest rate stays the same.

It’s important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errors.


“We struggled to make sense of the products available to us in the market on our own. Being put in touch with someone who could understand our circumstances was a huge help. Highly recommended.”

Wayne – Alton

“I was really happy with the mortgage advisor I was matched with. He was very helpful and explained things clearly.”

Tom – Woking

“The person I spoke to got in touch quickly and was able to work out an option for me which I didn’t think I had. Recommended.”

Scott – Selkirk

“My mortgage broker has been really helpful, always responsive, recommended.”

Alastair – Weybridge

“Really useful service, very knowledgeable broker, clearly explained my options”

Charlotte – Addlestone

“Received a call back very quickly from friendly advisor who explained my options… very happy with service.”

Shannon – Leatherhead