Broadband providers that cover exit fees: what’s the catch?
Several big broadband companies are now trying to tempt you away from your current provider, even if you’re mid-contract, by paying towards your exit fees.
BT, EE, Hyperoptic, Sky and Vodafone all advertise that they’ll help cover your exit fee if you decide to quit your current provider and move to them instead. Their offers sound enticing, with some offering to cover as much as £300.
So it is really worth ditching and switching for a shiny new provider – even if you’ve got months (or years) left on your contract?
What are broadband exit fees?
Exit fees – also called early termination fees – are the penalty charged by a provider if you choose to cancel your service before the end of the minimum contract period you’ve committed to (this is now most commonly 24 months, but can be 18 or 12 months, too).
Providers usually base them around the amount you would’ve paid each month so the longer left on your original contract, the more they’ll set you back. But if your new provider is offering to cover that fee for you, you may be attracted by a cheaper new deal.
Considering a switch? See how your current and new provider fares in our guide to the best and worst broadband providers.
What's the catch?
While providers suggest they’ll cover your exit fee, what they actually offer is bill credit so you’d still need to pay the initial early termination fee.
The maximum amount you receive is also often lower than the headline figures advertised as it depends on the package you sign up for – sometimes just £50. Cheaper deals typically receive smaller maximum contributions. By contrast, exit fees can cost hundreds of pounds, especially if they’re for more than six months.
In one example, Hyperoptic says it’ll cover ‘up to £300’ but to receive this, you’ll need to sign up to a 1Gbps deal that costs at least £25 per month. (The deal currently averages out at just under £43 per month).
Vodafone offers to cover ‘up to £200’, but if you take out its superfast fibre deals, you’ll receive a maximum of £50. Only its fastest full fibre deals are available for the higher amount.
The amount you receive will also be capped at the exact amount you’ve paid, so if the maximum amount is £50 but your exit fee is £30 you’ll only get bill credit for the latter. You’ll need to provide itemised evidence before a deadline in order to receive bill credit and there can be limitations on what the credit can be used on.
It's also important to note that these switch incentives generally need to be redeemed directly from the new provider, meaning you can’t also take advantage of attractive offers on switching services.
Which broadband providers offer to cover exit fees?
Some of the biggest providers are now offering various incentives to switch. We’ve broken down the maximum amount each provider offers, and trawled through the small print.
| Provider | Max amount covered | How long to claim | Previous providers excluded |
|---|---|---|---|
| BT | £300 | Two months | EE and Plusnet |
| EE | £300 | Two months | BT and Plusnet |
| Hyperoptic | £50-300 | 30 days | none |
| Sky | £100-200 | 90 days | none |
| Vodafone | £50-200 | 90 days | none |
- BT: Can be claimed if you take up a broadband or TV & broadband package. By invitation only – via BT's call centre or retail agents in-store, and credit is only given towards broadband and home phone termination charges (TV is excluded).
- EE: Lower credit will be offered if the new contract is for less than 24 months. Can be claimed if you take up a broadband or TV & broadband package, by invitation only via EE's call centre or retail agents in-store, customers must have had a broadband or broadband and TV deal with the previous provider.
- Hyperoptic: Credit depends on package and speed (must be at least 150Mbps). 150Mbps deals are eligible for a maximum of £50-100 credit, depending on cost, 500Mbps £50-200 credit, 1Gbps deals £50-300 credit. You'll have to commit to a 24 month contract.
- Sky: Up to £100 if you switch to Sky Broadband or Sky TV, or £200 if you switch to Sky TV & broadband.
- Vodafone: Up to £50 if you choose Fibre 1, Fibre 2, Full Fibre 74 or Full Fibre 80, up to £150 if you choose Full Fibre 150, up to £200 for Full Fibre 500, Full Fibre 910, Full Fibre 1.6 or Full Fibre 2.2.
Other ways to save when you switch
Our analysis found that, in most cases, you’ll be better waiting until your contract ends and looking at the special offers available elsewhere – or haggling with your current provider to see if they can beat the price.
Exit fees can actually be a useful bargaining chip here – tell your provider you’ve found a deal with a rival who’ll credit the fees, and they may be more inclined to offer you a good price to stay.
Deals on switching services are often competitively priced and some come with vouchers. Check today's deals on the Which? broadband comparison service. You can also earn cashback when switching broadband providers – again we’ve seen windfalls as big as £200, though £40-80 is more common.
There are other ways to save if you aren’t sure you want to change provider and ways to take advantage of your current deal. Read our guide to ten ways to save money on your broadband bills to learn more.
Switching is easy, and it’s one of the best ways to ensure providers work hard for your money. Our research also consistently shows it's the best way to save – the average is £105 per year, but even bigger savings are possible if you decide to leave one of the Big Four (BT, Sky, TalkTalk and Virgin Media).
Your new provider will take care of the entire process, and it's easy to get the ball rolling. We've broken down what you need to do into three straightforward steps – use our easy guide on how to switch broadband provider.
Seven things to check if you’re tempted by exit fee incentives
If you’re convinced by an exit fee incentive and are looking to move to a new provider, there are a few things to check before you switch.
- Which new packages does the exit fee incentive apply to? In some cases you may be limited to speeds that are far higher than you really need, so you could ultimately end up overpaying.
- Could there be a better provider for you? While we’ve rounded up the big providers that shout loudly about their exit fee incentives, the truth is that other providers may also be happy to help if you simply ask. For example, Virgin Media doesn’t advertise an exit fee incentive, but when we contacted it via live chat a customer service agent offered a one-off bill credit of £50 to offset an exit fee.
- Do you know how much your exit fee will be? Providers calculate them using different methods. In some cases it’s a set amount per month remaining, in other cases they require sophisticated calculations. You might want to double check with your current provider to ensure the bill credit received will offset the exit fee.
- What else is required? You should find out whether the new provider serves your property (check using your postcode), but also find out whether there are any additional fees, such as for set up or new equipment, or if switching will require anything else, such as drilling through a wall to connect full fibre to the premises.
- What happens if you change your mind? When you switch providers, you’ll be given a cooling off period of 14 days from when you’ve ordered. During that time you can cancel without penalty (though you may need to pay for any service you receive and/or any installation costs). However if you decide to cancel your new contract, the bill credit you receive as an exit fee incentive usually can’t be used to cover exit fees with your new provider.
- How much will your new contract cost? Many providers put their prices up every year, and some have introductory offers that can make it difficult to calculate exactly how much you’ll end up paying. Our broadband comparison service can help you understand the total cost of a contract, but you usually need to take a contract directly from your new provider to receive an exit fee incentive so may need to calculate the costs separately.
- What about when your contract ends? Some prices can go up dramatically after the minimum contract period is over. Make sure you’re aware of how much you’ll be charged and when your contract ends so you can switch or negotiate a new deal before your tariff goes up.
