Broadband exit fees, also called early termination charges, are penalties you pay when cancelling your broadband contract before the minimum term ends. Most contracts run for 12–24 months, and leaving early typically costs you the remaining monthly payments, which can add up to hundreds of pounds.
The good news? You’re not always stuck paying them. There are legitimate ways out: the 14-day cooling-off window, persistent speed problems your provider can’t fix, or unexpected price hikes that weren’t in your original deal. A few providers will even reimburse your exit fees when you join them, though you’ll want to read the small print on those offers.
This guide explains how exit fees work, when you can avoid them, and how to negotiate with your provider to reduce or eliminate these charges.
How Exit Fees Are Calculated
Broadband exit fees are typically calculated using a straightforward formula: the number of months remaining on your contract multiplied by your monthly cost.
Example calculation
Monthly cost: £30
Months remaining: 8
Exit fee: £30 × 8 = £240
Most providers subtract any discount you received for paying early (usually 1-4% if you settle in a single payment), plus VAT is removed from the calculation. This means the actual charge is often slightly lower than your standard monthly bill multiplied by the remaining months.
Important variations
Some providers calculate exit fees differently depending on your package. If you have a bundled service (broadband, TV, and phone), the exit fee may only apply to certain elements. Virgin Media, for example, charges separately for broadband and TV services if you cancel mid-contract.
Equipment fees are separate from exit fees. If you don’t return loaned routers or TV boxes within the specified timeframe (typically 60 days), you’ll face additional charges, often £65–£115 depending on the equipment.
Before you decide whether switching is worth it, you need to know exactly what you’ll pay. Use our exit fee calculator to get an accurate estimate based on your current provider and remaining contract length.
Checking Your Contract Status
Before making any switching decisions, you need to know three key pieces of information:
- Your contract end date
- How many months remain on your contract
- Your current monthly cost (excluding any temporary discounts)
How to check your contract details
Most providers make this information available through your online account.
Log in and look for sections labelled ‘My Contract’, ‘Account Overview’, or ‘Billing Details’. You should see your contract end date and current monthly charges clearly displayed.
If you can’t find this information online, call your provider’s customer service line. Ask specifically for:
- Your minimum term end date
- How many months remain on your contract
- Your current monthly cost (excluding any temporary discounts)
- Whether you’re out of contract (and therefore not subject to exit fees)
Check for these details in your paperwork
If you’ve kept your original contract documents or welcome emails, these will state your contract length and start date. Calculate your end date from there, keeping in mind that contracts typically begin on your activation date, not your order date.
Out-of-contract customers
If your minimum term has ended, you’re on a rolling monthly contract and can leave at any time without exit fees, though you may need to give 30 days’ notice. Many providers automatically move you to a more expensive tariff when your contract ends, so if you’ve been with the same provider for years without renewing, you could save significantly by switching to a new deal.
Once you know your contract information, you can calculate potential exit fees and weigh them against the savings from switching providers.
When You Can Leave Penalty-Free
You don’t always have to pay exit fees, even if you’re mid-contract. UK regulations give you several legitimate routes to cancel without penalty in specific circumstances.
1. During the cooling-off period
You have 14 days from when your service starts to cancel without any charges. This applies to all broadband contracts and gives you time to test speeds, reliability, and customer service. If you’re unhappy during this period, contact your provider to cancel. You won’t pay exit fees, though you may need to return equipment.
2. When speeds fall below the guaranteed minimum
Providers signed up to Ofcom’s voluntary speed code must give you a minimum guaranteed speed when you sign up. If your broadband consistently falls below this level and your provider can’t fix the problem within 30 days, you can leave without paying exit fees. You’ll need to log speed tests as evidence and give your provider the full 30 days to resolve the issue before you can cancel penalty-free.
3. Price rises not specified in your contract
For contracts signed after 17 January 2025, any price increases must be stated in pounds and pence when you sign up. If your provider raises prices in a way that wasn’t outlined in your original contract terms, you have 30 days from receiving the price change notice to cancel without penalty. This protection applies to unexpected increases, not to rises that were clearly stated in your terms.
4. Significant changes to your contract terms
If your provider makes major changes to your service, such as reducing speeds, changing your service significantly, or altering key contract terms, you may be able to leave without penalty. The change must be material (not minor adjustments to terms and conditions), and you typically have 30 days to cancel from when you’re notified.
5. Moving house where service isn’t available
If you’re moving to an address where your current provider cannot supply service, check your contract terms. Some providers will waive exit fees in this situation, but it’s not automatically guaranteed under UK regulations.
Contact your provider with proof of your move (tenancy agreement or completion documents) and evidence that they don’t serve your new address (use the postcode checker on their website or request written confirmation). Ask them to waive the exit fee based on their inability to continue service.
Provider policies vary, and some waive fees automatically, others may offer to transfer you to a different package or network, and some may still charge the full exit fee. If your provider refuses to waive the charge, you can escalate through their complaints process, though there’s no regulatory guarantee you’ll win.
Many customers find it easier to check coverage at their new address before committing to a move date, allowing time to either transfer service or switch providers penalty-free when their contract ends.
For more details on your consumer rights and how to enforce them, see our guide on switching broadband when moving home.
Exit Fee Reimbursement Offers
Several major providers advertise that they’ll cover your exit fees when you switch to them, but these offers come with important conditions and limitations.
What providers currently offer
BT and EE offer up to £300 in bill credit to cover exit fees. You’ll need to take a broadband or TV package, pay your old provider’s exit fee upfront, then claim reimbursement by submitting proof within two months. The credit appears on your bill, not as cash.
Hyperoptic offers £50–£300, depending on the package speed. Faster packages receive higher reimbursement. You must commit to a 24-month contract, and the credit is capped at the actual exit fee you paid.
Sky offers up to £100–£200 via bill credit when switching to Sky Broadband or Sky TV packages. Lower amounts apply if you only take broadband without TV.
Vodafone covers up to £50–£200, depending on which package you choose, with higher-tier full-fibre deals receiving the maximum amount.
The catch with free reimbursements
Exit fee reimbursement offers rarely cover the full amount you’ll pay. If your exit fee is £400, even the maximum £300 credit leaves you £100 out of pocket initially. The reimbursement also comes as a bill credit spread over several months, not an immediate refund.
These offers typically require you to take premium packages with longer contract terms (usually 24 months). You’ll need to provide itemised evidence of what you paid, a final bill showing the exit fee clearly, and claims must be submitted within a tight deadline, often 60–90 days.
Using offers as leverage
Even if you don’t plan to accept an exit fee reimbursement offer, mentioning them during negotiations with your current provider can be effective. Tell your provider you’ve found a deal where a competitor will cover your switching costs. They may match or beat the offer to keep you as a customer, potentially saving you more than actually switching would.
Before accepting any exit fee offer, calculate the total cost. Use our exit fee calculator to see what you’d pay, then compare against the reimbursement amount and the monthly cost of the new package over 24 months.
Haggling Strategies
Negotiating with your provider can often save you more money than paying exit fees and switching. Research shows that 71% of people who haggle successfully get a better deal, with the highest success rates at Virgin Media (84%) and TalkTalk (75%).
When to haggle with your broadband provider
The best time to negotiate is 30–60 days before your contract ends. Providers know you’re likely to switch at this point and are more motivated to keep you. Although you can negotiate your deal anytime during your contract, especially if you’ve been with the company for a while or if you find better offers from competitors.
Preparation is key when haggling
Before calling, research current deals from rival providers. Note specific offers, including speeds, prices, and any incentives like vouchers or fee reimbursement. Write down the key points you want to make and the deal you’re hoping for. This preparation makes you sound informed and serious about switching.
How to approach the conversation
Call the retentions or loyalty team, not general customer service. When you call, say you’re considering leaving and ask to speak to someone who can discuss keeping you as a customer. Be polite but firm.
Start by mentioning you’ve found a better deal elsewhere and name the competitor and their offer. For example: ‘Sky is offering 150Mbps for £25 per month, and I’m currently paying £35 for 67Mbps with you’.
If the first offer isn’t good enough, don’t accept immediately. Say something like: ‘That’s helpful, but it’s still more expensive than [competitor]. Can you do better?’ Often, the first offer isn’t their best one.
What to ask for from your provider
Request a combination of lower monthly costs, contract flexibility (shorter terms), or added value like speed upgrades at no extra cost. If you’re mid-contract, ask them to waive exit fees in exchange for signing a new contract with them.
Don’t just focus on price! Faster speeds, no mid-contract price rises, or waived installation fees can all add value.
If your broadband provider won’t budge
Mention that competitors are offering to cover exit fees (even if you haven’t decided to accept those offers). This can prompt providers to either match the offer or discount your current service enough to make staying worthwhile.
If your first attempt fails, try calling back another day. Different representatives may have different levels of authority or be more willing to negotiate.
For more money-saving tactics beyond haggling, including social tariffs and timing your switch strategically, see our social tariffs guide and money-saving tips guide.
Broadband Exit Fees Frequently Asked Questions
Do I still pay exit fees if my provider increases prices mid-contract?
It depends on when you signed your contract and what type of increase it is. For contracts signed after 17 January 2025, all price rises must be stated in pounds and pence upfront, and you have 30 days to cancel penalty-free if they increase prices beyond what was specified. For older contracts, if the price rise wasn’t outlined in your terms (such as unexpected increases beyond the standard annual adjustment), you can typically leave without fees within 30 days of notification.
Can I negotiate exit fees down even if I don’t qualify for penalty-free cancellation?
Yes, it’s worth trying. Providers sometimes reduce or scrap exit fees entirely, particularly if you’ve been with them for years or you’re leaving because the service has been rubbish. Ring the retentions team, explain what’s happened, and ask if they’ll lower the charge. If the first person says no, ask to speak to their manager. Keep notes of who you spoke to and when, just in case you need to take things further with a complaint.
What happens if I just stop paying and cancel my direct debit?
Don’t do this. Cancelling your direct debit without properly terminating your contract means you’ll still owe the money, plus late payment fees and potential damage to your credit score. Unpaid bills can be sent to debt collection agencies, and the missed payments will appear on your credit file for six years. Always follow your provider’s cancellation process, even if you’re disputing charges.
Will switching affect my credit score?
Switching providers itself doesn’t affect your credit score. There’s no credit check for most broadband services. However, unpaid bills, missed payments, or equipment charges can damage your credit rating. Make sure you pay your final bill in full and return all equipment on time. If you’re in dispute about charges, continue paying what you believe you owe while resolving the issue through the complaints process to avoid missed payment markers.
Related Guides
For more detailed information on specific aspects of switching broadband and managing bundles, see our comprehensive guides:
- How to Switch Broadband Provider UK – Complete step-by-step switching process
- One Touch Switch Explained – How the 2024 switching rules work
- Switching Broadband When Moving House – Provider notice periods and installation timelines
- Your Rights When Switching Broadband – Consumer protections, compensation, and speed guarantees
- Social Tariff Broadband UK – Eligibility criteria and how to apply
- Switching Broadband Bundles Guide: TV, Phone & Mobile – Bundle-specific switching rules
- How to Save Money on Broadband, Phone and TV Bills – Money-saving tips on switching and negotiation tactics
Use our tools
- Broadband Speed Test – Test your broadband speed in seconds
- Broadband Early Termination Fee Calculator – Work out what you’d pay to leave early
- Broadband Comparison – Compare standalone broadband deals with our postcode checker tool
- Broadband and TV Bundles – Find bundle packages at your address
- Broadband and Home Phone Packages – Compare broadband and phone combinations
