What to Check Before Financing an iPhone in the UK

There are four ways to pay for an iPhone in the UK: a pay-monthly contract with a network, instalment finance from the maker or a retailer, buying outright, and buying outright with a separate SIM-only plan. The monthly figure on the advert is rarely the whole cost. Check the term, the upfront payment, any stated price rises and the total before you apply.

The four ways to pay

Upfront cost against monthly price

Sellers usually offer the same phone and plan at several upfront amounts. A lower upfront payment means a higher monthly price, and the reverse. Neither is cheaper until you multiply the monthly price by the number of months and add the upfront payment. A low upfront deal suits someone who needs to keep cash now; it normally costs more over the term.

Work out the cost over the term

1. Monthly price multiplied by the number of months in the term.
2. Plus the upfront payment.
3. Plus any stated price rises: use the risen figures for the months they apply to, not the first month's price.
4. For finance: the total amount payable, which the lender must state, and the interest rate.
5. For outright: the handset price plus the SIM-only plan over the same number of months.

Compare like with like. A 36-month contract will show a lower monthly price than a 24-month one for the same phone, and cost more in total.

Price rises during the contract

Many UK mobile contracts state a fixed rise in pounds and pence each spring. The amount and the month are written into the contract and the seller must show them before you buy. Some sellers state that the price will not rise during the term. Read which applies, and use the risen prices in your sum.

The credit check

A contract or a finance agreement normally involves a credit check when you apply, and the search is recorded on your credit file. Approval is the seller's or the lender's decision. If a seller offers an eligibility check that uses a soft search, use it first. If you are new to the UK or have a short credit history, read the guide below before you apply.

Before you sign

• The term in months, and what you pay if you leave early.
• The data allowance, and what happens if you go over it.
• Whether the handset is new or refurbished, and the storage size.
• The network's coverage where you live and work: use its own coverage checker.
• Your right to cancel: online purchases normally carry a 14-day cancellation period.
• Conditions on any incentive, such as a trade-in bonus or a subscription offer.

How Wisemium helps

Wisemium shows each handset contract in its catalogue with the monthly price, the upfront payment, the term, the data and the stated price rises with their dates, so the sum above can be done from one page. Once you have a plan, add it to Wisemium and it keeps the price and the end date on record and shows it as needing attention as the term comes to an end. Wisemium does not provide finance or credit and does not list every provider.