5 things to check before you sign a new mobile phone contract

With new phones coming out every year, promoted by adverts shouting about their capabilities, its easy to fall into a cycle of regularly getting a new phone on a contract. However, the terms of these contracts can tie you down for years, with ever-increasing prices and charges for roaming and other extras. 

If you're tempted by one of the many discounts and the lure of a shiny new handset, check our advice before before you sign on the dotted line.

Compare mobile phone and Sim-only deals today

Get a great deal on a mobile phone contract, or browse Sim-only deals starting from around just £5 a month

See how much you could save

1. Buying outright rather than on contract

Look at the total cost of a phone before agreeing to a long-term contract. Networks often try and pair a phone contract with an expensive, high data Sim which could also add unnecessary cost. 

Buying the phone outright and pairing it with a low-cost Sim-only deal for just the right amount of data you need can not only save money, but with a 30 day rolling Sim, it's easy to switch if the price increases or you see a better option elsewhere. 

• Our mobile phone contract calculator can help you work out whether contract or Sim-only is the way to go.

With phones getting pricier, many people are turning to longer contracts in order to reduce the monthly price. It's important to check contract length carefully, as what might look like a low monthly fee may not be as appealing if you're tied to it for 36 months instead of 24 - you may end up paying more money in the long run.

Also, be sure to keep an eye on the contract end date and whether you get an end-of-contract notification, which can help you avoid being overcharged for your mobile phone.

2. Signal quality

Found the right deal with the right provider? Don't forget to check to see if you'll get good coverage. Not just at home, but also at your workplace, on your commute, or other areas you like to regularly go to.

Our mobile network coverage map will tell you about the quality of the signal provided by each network in any postcode area in the country. 

If you're moving to a provider on the same network to one you're currently using, you'll already know whether the signal is good, or needs improving. Check the table below to find out which network your provider uses.

If you want to be extra sure that reception is good before you enter into a lengthy contract, try picking up a cheap pay-as-you-go Sim from the network in question and trying it out first.

3. Price rises

Always check the terms and conditions. Price rises calculated using inflation rates or percentages have been banned by Ofcom, but networks now use annual increases, defined in pounds and pence, to drive up the cost of your contract over time. 

Therefore, if you want to make sure that the price you are paying for stays consistent, you are better off finding a provider which does not bake in price rises. 

Ideally, find a 30-day Sim only option to give you flexibility of changing if price rises are brought in. Browse the best Sim-only deals to see what's on offer. 

4. Roaming costs

Since Brexit, EE, Three and Vodafone all reinstated mobile roaming charges in the EU, so it's worth checking what your provider's roaming plans are, and in general how much it costs to use your phone in a country you're travelling to. Many of the smaller providers offer free EU roaming, with Lebara and iD Mobile allowing the most at 30GB. 

Outside of the EU, the costs can be much higher. If roaming is important to you, consider opting for a monthly Sim-only contract with a roaming-friendly provider.

Find out more about mobile roaming and how to prepare your phone for holidays abroad.

5. T&Cs on 'flexible' or trade-in contracts

Some mobile providers have flexible contracts, from 12 to 36 months, which let you trade in your phone for a new one. They're often billed as 'total flexibility' for those who want the latest handset.

• Vodafone's Evo lets you trade in your phone for a newer model every year, however you will be tied to trade in value that Vodafone will offer you.
• With O2 Refresh you can upgrade at any time after 90 days. This might sound good, but can mean you are essentially renting a phone for 90 days (or more) as you don’t have any value to show for the monthly payments you’ve made. This is because when you swap in a new phone, it starts a new contract for the new device. 
• With EE's Upgrade Anytime option, from day 15 of a new plan and up to 30 days before it ends you can upgrade your phone, often by paying an early upgrade fee. To be eligible, you need to trade-in your existing phone and sign up to a new 24-month plan. The data allowance on your new plan must be at least the same as or higher than the data allowance on your current plan, so you're more likely to end up in a situation where you're paying for far more data than you need.

While this flexibility may be attractive to some, carefully consider whether you really need to upgrade a phone and what additional costs are incurred. Ultimately, you have to decide whether price or flexibility is the most important factor in choosing your next mobile contract, and how important it is that you always have the latest handset.

Our annual mobile networks analysis takes into account all these factors and more, including price, to determine who are the best and worst mobile networks. Make sure you check out our guide to the best and worst mobile providers to see where your potential new provider is in the rankings.