What You Need to Know About Pawnbrokers in 2022

Did you know there are over 850 Pawnbrokers in the UK who offer secured loans? Pawnshops allow you to use valuable personal items as collateral when you need to borrow instant cash loans. FamilyMoney explore everything you need to know about pawnbrokers in 2022 to help you find the best pawnbroking loan for your needs and to avoid expensive mistakes. Read on to find out more…

Where can I find a Pawn Shop near me?

Below is a table of popular pawnbrokers to help you find the pawnshop nearest to you!

Pawnbrokers London
H&T Pawnbrokers 52 Kingsland High St, Dalston, London E8 2JP 020 7254 1788 phone icon - pawnbrokers number
Prestige Pawnbrokers New House, 67-68 Hatton Garden, Holborn, London EC1N 8JY 020 7405 6664 phone icon - pawnbrokers number
Pickwick Pawnbrokers 20 N End Rd, Golders Green, London NW11 7PH 020 8458 0620 phone icon - pawnbrokers number
Pawnbrokers Glasgow
H&T Pawnbrokers 9-11 Bath St, Glasgow G2 1HY 0141 332 5637 phone icon
Ramsdens Pawnbrokers 228 Main St, Rutherglen, Glasgow G73 2HP 0141 643 0019 phone icon
Pawnbrokers Liverpool
H&T Pawnbrokers 6 Whitechapel, Liverpool L1 6DZ 0151 709 2151 phone icon
Pawnbrokers Manchester
H&T Pawnbrokers Unit 5, Cheetham Hill Shopping Centre Bury Old Rd, Manchester M8 5EL 0161 740 6556 phone icon
Prestige Pawnbrokers 243 Deansgate, Manchester M3 4EN 0161 834 5713 phone icon
Mays Pawnbrokers City Centre, 3 Exchange St, Manchester M2 7EA 0161 835 1744 phone icon
Pawnbrokers Sheffield
H&T Pawnbrokers The Kiosk, 1-13 Angel Street, Sheffield S3 8LN 0114 276 9281 phone icon
Ramsdens Pawnbrokers 63 The Moor, Sheffield S1 4PF 0114 273 0118 phone icon

What is a Pawnbroker?

Pawnbrokers, also referred to as pawnshops, offer secured loans which allow you to use valuable personal items as collateral. While you can pawn many items, pawnshops often accept items such as; jewellery, gold coins, silver, antiques and any other valuable items as collateral. So, if you are struggling to get approved for a loan or credit card, a pawnbroking service may be just the alternative you are looking for.

How do Pawn Shops in the UK work?

  1. You hand over the item that you want to pawn, and the pawnbroker will value it for you.
  2. The pawnbroker will then provide you with a contract to sign. Check this carefully and question anything you are not sure about.
  3. The contract will set out the duration and cost of the loan; this will usually be a minimum of 6 months.
  4. The pawnbroker will also provide you with a separate pawn receipt to prove that the item belongs to you.
  5. As soon as you repay your loan (which can be before the agreed date), you will get your pawned item back. If you don’t repay your loan, the pawnbroker will sell the item to cover the cost of the amount borrowed.
  6. There is a 14-day cooling-off period which enables you to withdraw from your contract and pay interest for the period that the credit was taken.

pawnshop loans come with lower interest rates than high street banks but lower than payday loans - Familymoney


Pawnbroker Loans – What you’ll pay and how

Pawnbroking loans comes with higher interest rates than high street bank loans, but significantly lower than high-cost credit like payday loans. The pawnbroker will either provide you with a daily or monthly interest rate and should also show you the representative APR on the loan (annual percentage rate). The loan is usually repaid in one lump sum as opposed to paying monthly instalments. You can shop around to different pawnshops near you, to find the best rates available.

What if you can’t repay your Pawnbroker Loan on time?

If you don’t have the financial means to repay your loan by the agreed deadline, and you don’t want to lose your pawned item, you can ask your pawnbroker to extend the deadline. However, he may not agree to an extension – and he is under no obligation to.

If the pawnbroker doesn’t agree to extend your loan duration and you don’t repay the loan, the pawned item will automatically pass to the pawnbroker, and he can sell it to cover the cost of the loan. In the event that the pawned item is worth more than the credit you borrowed, the surplus cash must be returned to you. If the value of your pawn exceeds £100, the pawnbroker must tell you in advance that he wants to sell the item. This will give you the chance to repay the loan and reclaim your pawn.

Getting approved for a loan with bad credit is easier from pawnbrokers than an online loan lender. FamilyMoney


What happens if you lose your pawn receipt?

If you borrowed under £75, you could inform you pawnbroker who will provide you with a ‘standard form’ which you can sign.If you borrowed more than £75 you would be required to sign a ‘statutory declaration’ – You can get this document form a solicitor who might charge you a fee, or you might need to involve a commissioner of oaths or magistrate.

Who regulates pawnbrokers in the UK?

The financial conduct authority regulates pawnshops just like any other consumer credit activities in the UK. Before you borrow money from a pawnbroker, make sure that they are listed on the Financial services register with the firm reference number they provide to ensure that they are safe and legal pawnshop.

Pawnbrokers – Advantages

  • It’s easier to get approved for a loan with bad credit from premier pawnbrokers than an online bad credit direct lender, and there might be fewer credit checks.
  • You can get your money fast, usually on the same day.
  • You have the flexibility of redeeming your goods at any time before the agreed time. This means you will only pay interest for the loan period – the amount of time that borrowed the money.
  • If you were unable to repay the loan and the pawnbroker sells the item at a loss, the pawnbroker will usually not pursue you for the difference.

Pawnbrokers – Disadvantages

  • Pawnbroker loans come with higher interest rates than borrowing instant loans from high street banks
  • You can only borrow up to a given percentage of your pawn. So, for example, if you have a gold watch worth £500, you might only be able to borrow £250.

Will Online Pawnbroker Loans become available in the UK?

As of now, pawnbrokers do not offer loans online. However, lenders are continually working on making all types of credit more easily accessible in the UK so you can get the money you need fast when you need it. Until just a few years ago payday lending was done entirely instore – so expect to see a way to pawn your items online soon.

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