Broadband exit fees: When it’s smarter to pay up and move on
Dan Howdle • December 4th, 2025
Broadband exit fees are one of those things you don’t really think about until you’re halfway through a contract and are suddenly like 'Oh, I really need to leave'. That may be for various reasons, which we'll get into further down, but it's fairly true to say that if you need to leave, your contract can suddenly feel like a bit of a trap. The truth is simply that exit fees aren’t as clear-cut as they first appear.
Depending on where you are in your contract, what’s happening with your service, and whether you’re switching to another provider, you may not have to pay anything at all under certain circumstances. Other times you're going to be facing down a huge outlay. So let’s break down it down.
What are broadband exit fees and when do they apply?
Broadband exit fees are the charges you pay if you leave a contract early. Providers most often (but not exclusively_ calculate them based on the months left on your deal and the monthly price you agreed to, (sometimes minus any VAT or discounts). In most cases, the closer you are to the end of your contract, the less you’ll owe.
They apply when you choose to leave voluntarily before your minimum term ends. They don’t apply at all if you're out of contract, if your provider breaks the terms of the deal, or if specific Ofcom rules give you the right to walk away. Here's how the major UK providers handle early termination charges. Note that some offer a small discount if you pay your exits fees off in one go.
| Provider | Contract length(s) | Exit fee policy | Lump sum pay-off incentive |
|---|---|---|---|
| BT | 24 months | Remaining monthly cost, VAT added | 1% |
| Sky | 24 months | Remaining monthly cost, VAT added | N/A |
| Virgin Media | 18 months | Remaining monthly cost, VAT added | N/A |
| Vodafone | 24 months | Remaining monthly cost, minus VAT | 2% |
| EE | 24-month broadband | Remaining monthly cost, minus VAT | 4% |
| Plusnet | 24 months | Remaining monthly cost, minus VAT | 1% |
As you can see, exit fee policies are similar on the surface. Most providers charge you for the months left on your contract, but the details vary in ways that meaningfully affect what you’ll end up paying. Some charge the full monthly cost with VAT added (BT, Sky, Virgin Media), while others calculate the remainder before VAT, which brings the figure down quite a bit.
A few providers also apply small discount when you settle the whole fee at once, though these barely change the overall picture.
Where you are in your contract really matters
What you owe in exit fees depends almost entirely on where you are in your contract. Providers calculate charges differently as you can see from the table above, but the closer you are to the end of your minimum term, the less painful the numbers become. And of course once you're out of contract, the whole picture changes because you won't be facing any fees at all for switching.
Leaving early in your contract
If you leave with many months still remaining, you’ll be charged for most of the unused period. Providers typically take your monthly broadband cost, remove VAT and discounts, and multiply it by the months left as in this pretty typical example from BT. This is where exit fees are at their highest, which is why switching too soon can be expensive unless you’re moving to a deal that offsets the cost with 'broadband buyout' – more on that in a bit.
Leaving in the last 30-90 days of your contract
Exiting near the end of your minimum term will cost you far less of course. Providers reduce exit fees proportionally as the contract winds down, and some will waive charges entirely if you're within your final month. This is often the sweet spot for switching early if you don't want to wait for your official end date.
Leaving after your minimum term ends
Once your minimum term is over, you’re free as a bird. Do what you like – stay, switch, it doesn't matter: No exit fees, no strings. In fact, staying with your existing provider beyond your contract usually means you’re overpaying, as most providers will move you onto higher rolling-monthly price. At this stage, switching is almost always the smart move.
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Broadband buyouts – when your new provider pays off your exit fees
A handful of broadband providers will help cover your exit fees when you switch to them. We tend to refer to these as 'broadband buyouts', and we have a whole guide on those if you need to read further. Buyouts offer 'switching credits' designed to soften the blow of leaving mid-contract. Instead of waiting out your old deal, you move now, send proof of what you owed, and the new provider refunds you over the course fo your new contract and up to a set limit.
Just be aware that every provider offering buyout has specific caps, rules and timings you need to follow. And because the credit usually gradually throughout your new contract, you still need to pay your old provider’s exit fee upfront before being reimbursed. They will not prevent you from being out of pocket at the time you leave therefore.
Who offers them?
Buyouts come and go, but they’re most commonly offered by the biggest players – providers like BT, Sky, Vodafone, Virgin Media. Each one sets its own refund limit between £150 and £300 depending on who you choose to go with, and you’ll need to stay for the full term of your new contract to keep the credit or you'll be back to square one again if you try to leave your new provider early too.
Buyouts have strings attached
Switching credit is useful, but only when you understand its restrictions. Most providers have small print that can catch you out if you’re not careful.
- Buyouts are capped — you won’t get every penny back if your exit fees are particularly high
- You must provide valid proof of your previous provider’s termination charges
- Credit usually arrives after your first or second bill, so you pay upfront and get refunded later, and may even be eked out across the entirety of your new contract
Can I avoid early exit fees altogether?
Exit fees aren’t always set in stone. There are situations where you’re allowed to walk away from your contract without paying a penny, but some providers will tend not to be very proactive about letting you know this is available, for obvious reasons. If you know your rights, you can avoid unnecessary charges and switch on your own terms in some cases, however. For example:
Price rises above what your contract sets out
If your provider increases prices beyond what your contract allows, you can usually leave without penalty. Most UK broadband contracts now include inflation-linked rises at the outset, which you can also see in our comparison and the deals we feature on the site, but anything above that gives you a valid right to exit for free.
Sky, for example, doesn't play ball with Ofcom's rule to show future pricing at all at the time of writing. Instead, it simply states 'if we raise our prices, you can leave' or words to that effect. So the actual landscape here is quite nuanced and you should look carefully at what the policy is of the providers you're most attracted to.
If there's an unresolvable fault
If your broadband is consistently underperforming and your provider can’t fix it within a reasonable timescale, you can leave early without fees. This can include persistent faults, repeated dropouts or failing to meet the provider’s own minimum guaranteed speed, provided you’ve given them a chance to diagnose and resolve the issue first.
Moving home outside your provider’s coverage
If you move somewhere your current provider can’t serve, for example where there's no Virgin Media in the area, or the wrong type of network for your package, you can usually exit the contract without fees. Providers can only charge you for leaving early if they’re able to continue supplying the service at your new address. But…
- You must give notice and provide your new address
- Free exit only applies if the provider genuinely can’t serve your new location
- Some may try to offer an alternative package – you’re not obliged to accept it
Full Fibre 900
First month payable upfront
910Mb
Average speed
No phone line
24
Month contract
Zero upfront cost
£31.99 Per month
Effective monthly cost is calculated by adding up all the monthly costs, price rises and any discounts and dividing it by the contract length.
Once activated you'll receive claim information by email and must claim within 2 months, then activate within 3 months of it being issued.
Full Fibre Gigafast
600Mbps speed guarantee£5 fee refunded to first bill
900Mb
Average speed
Pay as you go calls
24
Month contract
Zero upfront cost
£39.00 Per month
Effective monthly cost is calculated by adding up all the monthly costs, price rises and any discounts and dividing it by the contract length.
You will be sent instructions on how to choose your Gift Card up to 120 days after your purchase. You will have 90 days to claim your Gift Card by sending it to your email or mobile phone.
Gig1 Fibre Broadband
Fixed price until March 2026 bill
1.1Gb
Average speed
No phone line
24
Month contract
Zero upfront cost
£24.99 Per month
Effective monthly cost is calculated by adding up all the monthly costs, price rises and any discounts and dividing it by the contract length.
Price reduction from usual price of £29.99pm to £24.99, saving £120. Also, Virgin Media are offering a switching credit up to £200.
When it’s smarter to pay up and move on
Sometimes your sanity makes the decision for you. Even if you can’t avoid exit fees, there are cases where paying them now saves you more over the remainder of your contract. Because a bad deal, a bad connection, or just living with a company you despise can cost you in ways that go well beyond the monthly bill.
When exit fees are smaller than staying on a bad deal
If you’re stuck on an overpriced package and your provider won’t budge, the cost of leaving early can easily be lower than the amount you’d waste by riding out the rest of the term. This is especially true if you've only a few months left and there's a heavily discounted competitor offer also offering broadband buyout.
When service quality is affecting work or daily life
If poor speeds, dropouts or unreliable Wi-Fi are affecting your ability to work from home, stream reliably or simply live without daily frustration, the value of switching becomes more than financial. Paying an exit fee is sometimes the quickest way to regain stability, especially if you can't work without a reliable broadband connection.
The bottom line
Exit fees are frustrating, but they’re not always a reason to stay put. In many cases they’re simply the price of leaving a deal that no longer works for you, whether that’s because prices have risen, performance has dropped, or a better offer is sitting right in front of you.
The key is to understand what your provider can legally charge you, what you can avoid, and when paying up actually saves you money, stress or both in the long run. With the right timing and a clear view on the numbers, moving on is sometimes the smartest choice.
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