Need some cash to ease the big squeeze, Guv? Forget days of back street spivs – now pawn shops are helping the middle classes pay school fees and tax bills in a new boom

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  • Pawnbrokers transform image over years to appeal to more affluent clientele
  • Some of more upmarket pawnbrokers report that business is up by 25 or 30%
  • Many of their new clients, they say, are seeking out pawnbrokers for first time

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Back street to high street: Some of the more upmarket pawnbrokers report that business is up by 25 or 30 per cent


Nestled around the corner from London’s Victoria station, Suttons & Robertsons looks like any other swanky, upmarket jewelry store in the heart of the capital. Stunning gold necklaces, diamond earrings and expensive watches adorn the window display – and the words ‘Founded TM Sutton 1770’ under the company sign lend a sense of grandeur.

In fact, the only indication this is a pawnbroker shop are three golden globes – the trade’s traditional symbol – on a coat of arms outside. Once the preserve of the poor, out of work or simply those down on their luck, pawnbrokers have transformed their image over the years to appeal to a more affluent clientele. This year, the shift is really paying off.

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The likes of Suttons & Robertsons have enjoyed a boom as the cost-of-living crisis has bitten – and they say the surge is being driven by middle-class customers like me.

Some of the more upmarket pawnbrokers report that business is up by 25 or 30 per cent, thanks to an influx of working families with large energy bills to pay; previously comfortable households struggling to keep up with school fees; and small business owners in need of emergency cash.

Many of their new clients, they say, are seeking out pawnbrokers for the first time. The trade’s slick new image was no more apparent than last month, when pop star Janet Jackson was spotted leaving the shop Prestige Pawnbrokers in Chelsea, South-West London, where she had reportedly been eyeing up a rare Hermes handbag.

I’ve come to Suttons & Robertsons – which is known as ‘the Harrods of pawnbrokers’ – with my most valuable possessions in hand to see how much it’ll lend against them.

Chief executive Jim Tannahill greets me with a firm handshake, before leading me to a brightly-lit oak counter under a grand chandelier.

I show him a photograph of my pride and joy – a Lotus Elise car – to see what loan he would offer against it. ‘Sorry,’ he says firmly. ‘We do not touch any cars worth under £75,000. The cost of the valuations, transport and storage do not make it worth it.’

Customers have been turning up with top-of-the-range sports cars in search of some quick cash, he tells me. ‘Last week, we gave a £150,000 loan to someone who motored up in a 12-year-old Ferrari 512,’ he says.

‘We also handed a loan of £350,000 to a customer with a 1950s Gullwing Mercedes valued at £650,000. There has been a 30 per cent increase in customers using our service over a year. The average loan amount is now about £5,000 – about double what it was a decade ago.’

This indicates a greater amount of borrowing from people with valuable assets. A pawnbroker typically hands over between 40 and 60 per cent of the value of an item as a loan.

They keep the item as security in case you are unable to pay the loan back. They also charge monthly interest of typically between two and six per cent of the value of the pawned item [see panel right],

If you do not pay back the loan before the deadline you have agreed, the pawnbroker will sell the item to recoup the cash.

Undeterred, I show Tannahill my next most valuable possession – a watercolor painting by the Irish artist JW Carey. He remains polite, but firm. ‘When it comes to art, it usually has to be something more well-known – and worth at least £10,000,’ he says. ‘Sadly, I am not sure it will reach such a price.’

To demonstrate what he means, he whips out an original Italian poster for the 1971 Michael Caine movie Get Carter. ‘We paid £1,200 for it earlier this year so the customer could afford a quick holiday,’ says Tannahill. ‘When he came back, I offered £2,000 to buy it – and he accepted what I believe was a fair market value.’

Tannahill is not the only one to notice a boom in affluent customers in need of cash.

Later, I speak to James Constantinou, the managing director of Prestige Pawnbrokers, which has eight branches in London and across Britain and stars in the TV series Posh Pawn.

‘There has been an explosion of interest over the past four to six months,’ he tells me.

‘Demand is up by about 25 per cent. People are struggling to pay for things they previously could afford, such as holidays, school fees and tax bills.’

Constantinou says customers are coming in to pawn rare vintage Rolex watches, sports cars and designer handbags and borrow up to £100,000 on a short-term loan.

Prestige Pawnbrokers charges around £2,900 a month for a short-term loan of £100,000. To borrow this much, you might need to hand over items with a total value of £160,000 as security.

There are a range of different types of pawnbrokers across the UK, from high street versions that accept items such as broken gold jewellery, watches and handbags, to high-end stores that accept these as well as anything from vintage wines to sports cars.

Ray Perry, chief executive of the National Pawnbrokers Association, says: ‘Demand is coming from all walks of life as the economic crisis begins to bite. We are becoming more important than ever – filling a need where others fail to offer support.’

Heirloom: Jim Tannahill inspects Toby Walne¿s wife¿s sapphire ring, which is deemed fit for pawning

Heirloom: Jim Tannahill inspects Toby Walne’s wife’s sapphire ring, which is deemed fit for pawning

H&T Pawnbrokers, Britain’s biggest pawnbroker with 250 stores nationwide, has seen an uptick in customers since the start of the year – many of whom have never walked through the doors of a money lender before. Its loan book rose 17 per cent – ​​from £66.9 million to £78.3 million between January and April.

Chief executive Chris Gillespie says: ‘The impact of…


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