Fancy tie? Here's one in hand for Democrat to wear (7)
I believe the answer is:
bandana
'fancy tie?' is the definition.
(type of neckwear)
'one in hand for democrat to wear' is the wordplay.
'one in hand' becomes 'banana' (a hand is a bunch of bananas).
'for democrat' becomes 'd' (I can't explain this - if you can you should believe this answer much more).
'to wear' means one lot of letters goes inside another (to wear something is to be covered up by it).
'banana' placed around 'd' is 'BANDANA'.
'here's' is the link.
(Other definitions for bandana that I've seen before include "Brightly coloured neckerchief" , "Handkerchief worn round the head or neck" , "Type of scarf" , "Large and brightly coloured handkerchief" , "Spotted square" .)