Mobile phone contracts usually lock you in for a year or two. If you do cancel early, you may face a hefty cancellation fee.
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There are lots of reasons why you might want to cancel a mobile phone contract early, but if you do so you may be required to pay fees under the terms of your contract.
Here we look at exactly how to cancel a mobile phone contract early and the costs you might be expected to pay.
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We always recommend you switch to the cheapest provider where possible, as staying loyal to one provider rarely pays off.
However, with mobile phone contracts you need to proceed with caution if you want to cancel or buy out your contract early.
Before you sign up with a new mobile service provider, check carefully whether you have the right to cancel your contract and if so, at what stage.
You’ll also want to look out for price hikes within the contract, so you know what kind of costs you can expect during the contract term.
Mobile phone providers are allowed to make price hikes even when you’re in a contract.
These will be written into the terms and conditions and unfortunately you usually can’t leave (without paying a penalty) if you don’t want to pay the higher cost.
However, there may be circumstances where you can end the contract early. See our guide to your rights to cancel if the cost of your mobile phone contract has gone up .
There are lots of reasons for cancelling a mobile phone contract early, including the following:
Yet before you cancel, think carefully about the costs involved as it may not make financial sense to do so.
If you cancel before the minimum contract term is up, you'll have to pay an early termination fee or you may be required to pay for the remaining months of your contract.
In most cases these will be high and it may be worth staying with your provider until the minimum term is up and then calling them to renegotiate a cheaper deal or telling them you’re going to switch.
If you want to cancel your mobile phone contract after your initial contract term is up, you can do so at any time, although most companies require 30 days' notice.
To keep your existing mobile phone number you need to ask your existing provider for a Porting Authorisation Code (PAC).
If you ordered your phone online, you can cancel under the Consumer Contracts Regulations within 14 days.
You normally have the right to keep the same mobile phone number when you switch mobile providers.
To do this, you need to ask your existing mobile provider for a Porting Authorisation Code (PAC).
You give this code to the new provider to make the switch but most companies require a month’s notice.
If you entered into your mobile phone contract over the phone or online you have 14 days from entering into the contract to cancel, under the Consumer Contracts Regulations .
You don’t have to give a reason for cancelling the phone service and should be refunded. However, you must pay for the value of the service that was provided up to the point you cancelled.
If you buy a mobile handset online, by mail order or over the phone, under the Consumer Contracts Regulations you have the right to cancel from the moment you place your order up to 14 days from the day you receive the phone.
This 14-day period is the time you have to decide whether to cancel, you then have a further 14 days to actually send the goods back.
You should get a refund within 14 days of either the retailer getting the goods back, or you providing evidence of having returned the goods (for example, a proof of postage receipt from the post office).
If you buy your mobile phone or enter into a phone contract in a high street shop, then you don’t automatically have any cancellation rights if there isn’t a problem with the handset or the service.
Some mobile shops do have generous returns policies, so read the shop’s policy before buying.
When you’re ready to part with your old phone, it’s a good idea to look into recycling it.
