Want to find out more about how pawnbroking works or the items that can be used as security for an asset loan? We’ve put together these pawnbroking FAQs to give you quick and easy answers to your questions.
How does pawnbroking work?
A pawnbroking loan is a loan secured on an item of value such as gold, jewellery, watches, cars, or any other item of value. The items remain yours for the duration of the loan and are used as security only. When the loan is repaid, your goods are returned to you.
When you want to pawn your item, we’ll ask that you come down to our private offices where we’ll carry out a valuation. We’ll inform you how much we can lend against the value of the item, then once you’re happy we’ll issue a loan the same day, either in cash or via bank transfer.
What’s the difference between pawning and selling?
The main difference between pawning and selling is that with a pawn loan you don’t actually have to part with ownership of your valuables to release their value. With pawning, a loan is issued against the value of the item and once the loan has been repaid in full, your item is returned to you.
What happens if you don’t pay a pawn loan?
If at the end of the 6-month period, the loan has not been redeemed, then by paying the interest only, the loan can be renewed for a further 6 months.* If the loan has not been repaid or renewed, then the goods are sold to pay off the loan. Any surplus achieved over the amount owing is returned to you.
*At our sole discretion
What happens if I can’t pay back the loan but don’t want my items to be sold?
If you’re unable to redeem the loan and don’t want your items to be sold, the loan can be renewed for a further 6 months by paying the interest only and leaving the capital outstanding.
What can I pawn for quick cash?
You can pawn various items that have value. Our expert team can value and provide a competitive asset loan against almost anything. Some of the most common items we pawn are as follows:
- Electrical goods
- Computer ware
- Cars, vehicles, motorbikes
When does it make sense to pawn my goods?
It makes sense to pawn your goods when you need to raise cash quickly. Unlike banks, we are not bureaucratic, and a loan can be raised in cash within a few minutes. We lend very generously against a wide range of items.
Pawning your valuables means that you can raise the cash you need quickly without a credit check and the long application process often associated with other types of borrowing. With a pawnbroking loan it’s the item used as security that determines the amount that can be borrowed.
However, it’s important to consider that if the loan is not repaid, you could lose your valuables as they would be sold to pay off the loan. If your items have sentimental value, try and plan how the loan will be repaid at the outset so that this does not happen.
How much interest do pawnbrokers charge?
Our interest rates are very competitive and are much less than many of our high-street and online competitors, but please feel free to compare our rates before committing.
Our current interest rates for jewellery and watches are as follows:
|Loans from||Monthly interest||Representative APR|
|£20,001 and above||1.99%||25.31%|
|£15,001 – £20,000||2.99%||39.10%|
|£5001 – £15,000||3.5%||46.41%|
|£2500 – £5000||4.0%||53.76%|
|£1000 – £2499||4.5%||61.29%|
|£300 – £999||5.0%||69.00%|
|£5 – £299||6.0%||84.96%|
Please get in touch to find out about our interest rates for other items.
Will a pawnbroker’s loan affect my credit score?
Pawnbroking loans do not affect your credit score as we don’t carry out a credit check before issuing the loan as it’s secured against the item. Additionally, in the event the loan is unpaid, it won’t cause a negative mark on your credit record as the item itself pays the loan in the event of default.
How long does a pawnbroking loan last?
A pawnbroking loan has a term of 6 months. That means that we give you the loan in cash and a six-month loan term to pay it back. This can be paid in one lump sum at any time during the loan term of 6 months, however, nothing needs to be paid until the end of six months. During the loan term, you have the option to make payments to reduce the loan balance at any time but this is at your discretion and there is no requirement to do so. Unlike other loans, there are no monthly instalments to pay.
What happens at the end of a pawnbroking loan?
Just before the six-month period comes to an end, we’ll send you a letter notifying you that the loan can either be redeemed by paying the loan amount, plus six months’ interest or you can choose to renew* for a further six months by paying the interest only. If it’s not convenient for you to redeem the loan or renew it, the asset will be sold, and you won’t owe us anything.
*Renewals are at our sole discretion
What if I want to pay back my pawnbroking loan early?
A pawnbroking loan can be repaid (settled) at any time and interest is only charged up to the month the loan has been outstanding. We give you a loan agreement for six months and this can be extended for another six months* by paying the interest outstanding at the end of the period.
Alternatively, you can pay off chunks of the amount borrowed (part settle) at any time during the loan term, thus reducing the amount of interest payable going forward. This can be done as many times as you wish to reduce the capital until it’s fully paid.
Whichever way you choose to pay the loan, it’s this flexibility which makes a pawnbroking loan a very attractive option.
*Renewals are at our sole discretion
What is a pledge in pawnbroking?
A ‘pledge’ is the item of value you leave with us as security against your pawnbroking loan. For example, a watch, a ring, a television, or a vehicle. We’ll consider any item of value as a pledge against a pawnbroking loan.
The idea of a pledge in pawnbroking is that its value will be sufficient to cover the loan, interest and any costs outstanding if the loan is not repaid for any reason.
The ‘pledge’ will be returned to you when the loan is repaid. If at the end of the 6-month loan period, the loan has not been redeemed or renewed, the ‘pledge’ will be sold to pay off the amount owing.
How will you look after my pledge?
Pledges are kept in our secure storage facilities until the loan is repaid. The nature of the item pledged will determine which storage facility is used.
Can I pawn my car?
Yes, Maxcroft Pawnbrokers are experts at lending against all manner of cars, vans and vehicles in the London and Essex area.
We’ve been lending against cars and vehicles of all kinds for many years, and we offer a very quick and efficient service. We can tell you how much we are able to lend and if you are happy with the terms, we can give you the cash loan on the spot.
When you pawn your car, it’s stored in secure storage facilities until the loan is repaid. This is often useful if you don’t need the use of a car throughout the loan.
Can I pawn my watch?
Yes, we lend cash against a wide variety of quality watches including Rolex, Cartier,
Breitling, Jaeger LeCoultre, Patek Phillippe, Tag Heuer, Vacheron Constantin, Franck Muller, Hublot, Chopard, Omega, Panerai, Tissot, Omega, Longines and Audemars Piguet and many more. All quality watches are considered.
We can offer very generous loans against watches drawing on our expertise acquired over many years valuing the finest watch brands. When we assess the value of a watch as a pledge for a pawnbroking loan, we will consider many factors including the make of the watch as well as its age and condition. Also, if the watch has the original box and papers this too will add value.
The watch market is dynamic, and we keep abreast of trends in the watch market and changes in values for different watch brands over time which often enables us to lend more.
Can I pawn my TV?
Yes, in some circumstances we’ll lend cash against high-quality televisions. We’ll consider the age, brand, size, and condition of the TV.
Generally, we’ll take a TV as security against a loan if it’s a recent model and in excellent condition, complete with the remote control and paperwork.
We also lend against some other electrical items including computers, tablets and other electronic devices depending on the age and condition.
Can I pawn my jewellery?
Yes, we lend against all manner of jewellery whether it be scrap gold or fine pieces. We lend against 22ct, 18ct, 14ct and 9ct gold, as well as platinum. Even if your jewellery is broken or incomplete, we’re happy to use it as security for a loan.
When we assess the value of jewellery, we look at:
- Metal type: platinum or white, yellow or rose gold
- The purity of the metal i.e., what carat it is
- The hallmarks: this guarantees the metal’s purity and carat. If gold or platinum is not hallmarked, we can still assess the purity
- For gemstones: we look at the cut, colour, clarity, and weight (carat) of the stone
We check gold and diamond prices daily to make sure that we’re lending according to the most current values.
Can I pawn my tools?
Yes, we offer instant cash loans against working tools that are in good condition.
Can I pawn my musical instrument?
Yes, we offer instant cash loans for musical instruments that are in good condition.
We can lend against all manner of musical instruments including:
- Electric guitars with or without amplifiers and speakers
- Saxophones, trumpets and brass instruments
- Turntables and electrical ancillaries
What are the alternatives to pawning my items for cash?
If you don’t wish to pawn your items, we’re happy to offer you a price to sell your items.