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Pawnbroking is the oldest form of borrowing cash, and the evidence of its use dates back to more than 3,000 years ago. The process and idea are simple that worked well, and has stood the test of time. The Luxury Hut pawnbrokers London provides a simple, secure and hassle-free way to apply for a pawnshop loan. We always strive to ensure that the process is convenient as possible.
Are you thinking to apply for a pawn loan? Is it the first time? Then, you will surely have many questions about what a pawnshop loan is, how it works, what you need to have to get it, and more. So we have put together some commonly asked questions on pawnbroking to help you by taking you through all the basics.
A ‘pledge’ refers to any item of value that you used as security – also referred to as collateral -against a pawnbroking loan. It can be a luxury watch, gold, diamond jewellery, a car and more.
In pawnbroking, the concept of a pledge is that its value will be enough to cover the loan amount, interest or any cost outstanding in case the customer do not repay the loan for any reason.
When you repay the loan after the loan term ends, you will get back your pledge.
Pawnbroking is a quick, easy and secure way to borrow money against an item of value that you own. At The Luxury Hut, we lend against high-end luxury watches, diamond and gold jewellery or any gold item.
The loan amount you are likely to secure depends solely on the value of your collateral. Pawnbrokers will not check your credit score or how much you earn.
The maximum loan term is usually six to seven months. However, you can pay off the loan any time during your loan tenure and redeem your asset.
You can pawn virtually any item of value. However, the things accepted as collateral for a pawn loan typically vary from one pawnbroker to another.
At The Luxury Hut, you can secure a loan against luxury watches, diamond jewellery, loose diamonds and gold (jewellery, scrap gold or any gold item).
Opting for a pawn loan is always a better choice than getting a personal loan. Why? Here are some of the significant advantages:
A pawn loan gives you access to cash instantly, unlike other loan types that usually take a couple of weeks to approve. You will only need an item of value to keep as security.
At The Luxury Hut, we will appraise your asset and offer you a cash loan, even if your credit score is poor. Accept our offer and get paid on the spot.
Unlike banks or any financial institutions, a pawnshop loan requires minimal paperwork for approval. Here at The Luxury Hut, we only ask for valid proof of identification to get into the agreement. And after you accept our loan offer, you will have to sign a pledge receipt that outlines your loan terms. That’s it.
From visiting our pawn shop in London, getting a quote, to walking out with your cash, the entire pawnbroking process may take as little as an hour to complete.
Pawnbrokers do not check credit score or how much you earn before approving a loan. As long as you have a precious item to use as collateral, you can opt for a pawnshop loan.
Pawnbroking allows you to retain ownership of your asset, and it significantly matters if you have a strong emotional attachment with the item.
Whenever you need to secure some fast cash or in short-term financial needs, you can choose to unlock the value of your asset by getting a pawn loan. You can get a pawn loan and cash in your hand within a few minutes.
As we mentioned earlier, pawnbroking allows you to instantly borrow the money you need against a precious item without any credit check.
Moreover, you do not also have to go through a lengthy application process to get the loan. The asset you keep as security will determine the amount you can borrow from the pawnbrokers in London at The Luxury Hut.
Our interest rates vary from 4% – 6% per month. Take a look at the representative example given below –
Representative Example 1: Loan of £6000 borrowed for three months
Total interest for three months – £900
Representative Example 2: Loan of £500 borrowed for one month
The amount you can borrow and that we are willing to lend will depend on the value of your collateral. However, the minimum amount of cash loan you can borrow from The Luxury Hut pawnbrokers London is £300.
Fill in our online form providing all details on your asset. We will contact you immediately with a loan quote via phone or email. Alternatively, you can call us on 0207 242 9160 now for an instant valuation over the phone.
At The Luxury Hut, the maximum term for a pawnbroking loan is seven months.
You can retrieve your collateral at any time during your loan term, provided you pay off the entire loan amount and the interest due. We do not charge any early retrieval fees.
Yes. We will store your asset securely in our safe until you come back to repay your loan in full and collect it.
If you cannot repay and collect your pledge within the agreed time for any reason, we can offer you a choice to renew your loan. This means we can extend your loan agreement for seven months for another seven months. You only have to pay the interest due at the end of the contract. And this will not affect your credit score.
However, it is recommended to repay and redeem your asset within the agreed loan term.
Yes. The Luxury Hut pawnbrokers in London are regulated by the Financial Conduct Authority (FCA). Thus, we abide by the applicable rules and guidelines issued by the FCA for pawnbroking. We are also a part of National Pawnbrokers Association (NPA).
For any further questions or concerns, you can contact us on 0207 242 9160.
Pawnbrokers once acted as the only means of support for the helpless or poor people during hard times. However, with years, more and more people recognised the benefits and convenience of the services offered by high street pawnbrokers. And today, individuals from different walks of life turn to pawnbrokers to raise some fast cash during short-term monetary needs.
High street pawnbrokers are not the relics of days past. They continue to serve as a reliable lifeline for many borrowers, especially those who cannot access mainstream credit lending.
Today, more people are turning to pawnbrokers because it is more straightforward to get a pawn loan than other traditional loans. If you want to secure a pawn loan from a pawnbroker, you only have to give any valuable item as collateral to your pawnbroker. However, the collateral or pledged asset can be anything of value. But most people commonly opt for a loan against watches, diamond and gold jewellery.
Now your pawnbroker will evaluate your pledge’s value and offer you a cash loan based on the value over an agreed time. The maximum tenure of a pawn loan is usually six to seven months. However, one of the most significant benefits of pawnbroking is that –
You can retrieve the loan any time within the contract tenure and redeem your pledge item.
What if you fail to repay your loan by the deadline? Your pawnbroker can either help you to renew your contract or sell the pledge. Unlike payday loans, pawnbrokers allow settling their loans quickly without building up impossible debt levels for customers.
Borrowing credit from a pawnbroker is undoubtedly fast and convenient. Moreover, in terms of interest rates, pawnbrokers provide a much better rate compared to payday lenders. Another significant advantage of pawnbroking is that pawnbrokers do not carry out any credit check before approving a loan. This is because they lend money based on items.
However, the Financial Conduct Authority (FCA) regulates the pawnbroking business in the UK. Every pawnbroker has to meet and maintain stringent rules of conduct and solvency. Moreover, customers who have not received fair treatment are left only after a remedy.
Customers entering into a pawn loan agreement are entitled to a 14days cooling off period. This enables you to change your mind and deny the contract with no penalty up to 14 days from signing the agreement.
Interestingly, according to FCA rules, every authorised lender providing unsecured access to money has to carry out a creditworthiness assessment of the consumer. But pawnbrokers do not need to conduct this as their credit depends on a valuable asset.
So if you are looking to raise some fast cash and own anything of value, you can make the best decision by getting in touch with any trusted pawnbrokers in London or any other big city. No matter if you have an emotional attachment to the item you use as collateral, you can get it back once you pay off the loan.
The National Pawnbrokers Association (NPA) works to render independent pawnbrokers all over the nation the perfect resources and implements to consolidate the pawn industry. The members of NPA operate to amplify and develop the professional and pragmatic image of all pawnbrokers.
With that in mind, The National Pawnbrokers Association has authorised a significant independent research project that focuses on the experiences of pawnbroking customers.
The University of Bristol Personal Finance Research Centre undertook the research that obtained perceptions of customers’ views and their personal experiences.
However, the research included 1,669 pawnbroking customers from all across the nation and analysis were made based on the management information from 85,000 loans.
The pawnbroking research conducted by The National Pawnbrokers Association (NPA) details the findings given below –
Pawnbroking was considered as a high-cost option by just 5% of customers.
Out of ten customers, six of them said that they needed the pawn loan for their living expenses.
Customers opted for pawnbroking loans because of its speed, simplicity and convenience.
£243 is the mean average amount of credit, and it mostly lends against gold jewellery items.
More than 90% of customers were satisfied with the pawnbroking loans.
Thus, the findings show that most of the customers are familiar with the way the process of pawnbroking works. They are aware of the convenience of the pawn loans and delighted with its flexibilities.
Moreover, maximum customers redeem their collateral by paying off the loan amount on time. Many people also consider the process of renewing the pawn loan as one of the significant benefits of pawnbroking.
Interestingly, many customers did not consider the cost to be a matter of concern.
Ray Perry, NPA Chief Executive, said –
“We are delighted with the extremely high level of customer satisfaction and the value they see in the service provided, and we are pleased renewals are considered extremely important in supporting customer needs. We believe pawnbrokers are well placed and well equipped to continue to help customers as we start to move on from lockdown and the impact of Covid-19 on households.”
Indeed, pawnbroking is ideally the best way to raise instant cash without having to sell your precious asset outright. More and more people today are turning to pawnbrokers to get access to fast cash and meet their short-term financial needs.
Thus, trusted pawnbrokers like at The Luxury Hut are always working to make the pawning process more convenient than ever.
If you are looking to raise instant cash, get in touch with The Luxury Hut pawnbrokers in London.
With a secure online platform and an office in Hatton Garden, London, we provide our customers with a quick and secure way to get a loan against luxury watches, diamond and gold jewellery.
Moreover, as the trusted pawnbrokers in London, we aim to provide the highest amount of cash loan against the assets that customers want to pawn with us.
When looking to raise instant cash, one of the ideal choices is to pawn valuable assets like your luxury watch and get a loan against it.
Once you bring in your luxury watch to a pawnshop, the pawnbroker will assess your asset’s value.
Your pawnbroker will determine the final cash loan amount that he/she is willing to offer based on your asset’s current pre-owned market value, and make you an offer.
The maximum tenure of a pawnbroking loan is six to seven months. The pawnshop then keeps your collateral temporarily.
As soon as you repay the original loan amount with its interest due, you can retrieve your asset without any hassle.
Thus, whether you are looking for a short-term credit option or your watch holds high sentimental value, pawning your watch is ideally the most viable option.
Trustworthy pawnbrokers in London like at The Luxury Hut offer a secure and straightforward way to pawn watches both online or via appointment.
Our expert team of watch evaluators can precisely assess the value of any luxury watch that customers want to pawn.
However, we take into consideration many significant factors like the watch’s brand, model, age, condition, and also the current pre-owned market price while determining the final amount of credit loan that you can borrow from us.
The Luxury Hut London pawnbrokers have the necessary expertise to make competitive offers on your timepiece. The fact is:
We aim to beat any high street pawnbroking loan rate.
Whether you choose to pawn your watch with us online or via appointment, you will enjoy benefits like:
Thus, you can pawn your luxury watch with us at The Luxury Hut with full confidence.
Begin the process by filling up our online form now and receive your free price quote.
Or call us on 0207 242 9160 for an instant appraisal over the phone or to book an appointment at our Hatton Garden office in London.
If you want to pawn your watch quickly for the best price, follow the steps given below:
Fill up the online form, providing all details of your watch as much as you can and attach its high-quality pictures. You will get your initial price quote shortly.
For getting the final price, you can send your watch to us via a specialised and insured delivery envelope that we may arrange for you.
Or call us to book an appointment and visit our office in Hatton Garden, London with your watch.
We will make you our final cash loan offer on the spot or usually on the same day we receive your asset. Accept it, sign your pledge receipt and get paid within minutes via your preferred method of payment.
The entire process is quick, secure, and hassle-free. From filling up the form to getting paid, it may take as little as two days to complete the transaction.
Pawnbroking may not be known as the oldest profession of the world, but its origin can be traced back to more than 3,000 years ago when pawn shops first turned up. Pawnbrokers used to provide credit to the peasants while being supervised by Imperial authorities.
Pawn shops were famous in ancient Greece and Rome. While small merchants used a pawn loan to begin their businesses during the Middle Ages, the Catholic Church imposed restrictions on charging interests for pawn loans. This eventually hindered the growth of pawn shops. However, with the increase in demand for such kind of credit in 14th and 15 century, the constraints loosened.
The pawnbroking industry that we know today can be traced back to 15th century, Italy when the financially dominated noble Medici family divided in two. While half of the family members became bankers, others became pawnbrokers who took half of the family crest. This pawnbroking part of the family integrated today’s instantly recognisable symbol of the pawnbrokers- the three gold balls.
However, the symbol has also been ascribed to the story of Saint Nicholas who has saved three poor young girls from dire poverty by giving them each a bag of gold so that they could get married.
European citizens procured pawn loans to aid their families financially as well as to acquire new businesses off the ground. Sometimes, a pawn shop is also called as ‘Lombard’ in Europe, referring to the House of Lombard that was a recognised family known for lending money.
In the 18th century, people belonging to lower class borrowed money against collateral from Franciscan monks for little or no interest. However, in the latter stages of the 19th century and early 20th century, there were virtually as many pawnbrokers as public buildings in Britain, lending cash on almost anything from cutlery and bed linen to the best wardrobes. With the fright of the workhouse draping over the lives of the poor, they used to try all means to avoid it, even if they had to pawn their belongings to obtain some amount of money temporarily.
Although pawnbrokers had earned itself a prejudiced reputation in the past, its image has enormously changed over the last twenty years or so.
The upsurge in the pawnbroking industry came during the credit boom in the 1980s, and it continued to flourish today with customers preferring this convenient High Street way to borrow money.
With more and more people looking to raise cash for a short period, the process of pawnbroking became an easy, quick and convenient way to secure short-term loans in the past few years. Today, there are many trustworthy local pawnbrokers in London or any other big city who provide entirely secure, transparent and straightforward service, making the pawnbroking process a significant alternative to any other way of borrowing money.
You may own a luxury pre-owned watch that you have decided to sell it in a pawn shop in London or any other big city. You may not have ever worn the watch or may have purchased it a few months back. Regardless, it will be considered as a second hand watch or a used watch. However, luxury pre-owned watches retain their value as they age. If they have been kept in an excellent condition, they would entice ardent collectors, watch dealers as well as pawnbrokers.
Here are three points that you should consider when selling a pre-owned watch to a pawnbroker. It may help you to get the best price of your luxury watch, making the process of selling more comfortable for you.
If you want to sell your second hand watch, there are some essential factors that you should consider such as the watch’s brand, model number, box and papers and condition. A reputable and prestigious watch brand like Rolex, Cartier and Patek Philippe always hold their value and are sought-after in the market. The limited editions are rare, and thus, they demand higher prices when they are sold. However, the original box and papers often add nearly 5% to 10% to the second hand price of a luxury watch.
Another significant factor that is considered to determine an accurate estimated value of a second hand watch is the watch’s condition. If a watch is in an excellent working condition or has been regularly serviced, it will fetch you a higher price.
In many instances, a second hand luxury watch may worth a lot less than what you paid for it. But, in some cases, the value of particular watch models may increase due to their collectable status, rarity or because, someone prestigious or famous owned the watch. You can research online by browsing through your watch brand’s website or any trustworthy dealers’ sites. Although the price of the same watch model may change dramatically from one dealer to another, you will obtain a good idea of the current market value as well as what buyers are likely to pay for your watch.
As one of the high-end pawn shops in London, The Luxury Hut has a team of watch specialists who continuously analyse the second hand market to keep track of the current market value of used watches. You are likely to get an accurate valuation of your watch if you sell it to us. You can fill in our online form and receive your quote shortly after.
There may be many places where you can sell your pre-owned watch, but it is essential that you choose a reliable buyer to end up selling your watch at its best price. Pawn shops always look for luxury timepieces to buy. High street pawnshops like The Luxury Hut in London, UK have professional evaluators with extensive knowledge and experience in dealing with the second hand watches and market.
Bring in your pre-owned watch to us and get it appraised. With more than 40 years of experience, The Luxury Hut provides a fast, hassle-free and straightforward service to customers who are keen to sell their luxury watches. You can rest assured to receive the best possible value of your pre-owned watch that you are interested in selling to us.
With a luxury pawn shop like The Luxury Hut, you will receive cash payment immediately. The Luxury Hut pawnbrokers provide an accurate price for any pre-owned watches along with a quick payment service. You can also sell your pre-owned watch online to The Luxury Hut – fill up the online form and get an instant quote from one of the valuators experts.
If you are satisfied with our valuation, bring in your watch to us or send it. We will pay you via your preferred method of payment immediately.
© 2022 The Luxury Hut is a trading name of Golden Cash Limited. Authorised and regulated by The Financial Conduct Authority for pawnbroking. Registered in England as Golden Cash Limited. Registered Number is 07309335. Registered office address: Treviot House, 186-192 High Road, IIford, Essex, IG1 1LR.
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