An estimated six million mobile customers are out-of-contract on a pay-monthly handset deal which means they are still paying for a phone they’ve already bought during the original term.

According to comparison site Uswitch, customers on expired mobile handset deals could save an average £321 a year when switching to a new, low-cost SIM Only deal.

It said collectively, these billpayers could save nearly £2bn a year making the switch.

Meanwhile, there are about four million households on expired broadband deals so they are still paying for an outdated package.

Uswitch said this means they are overpaying by a combined £729m. However, by switching to the best broadband deal now, they could save £162.

If you’re out-of-contract with both your mobile and broadband, it means potential annual savings of £500 by switching to a better and cheaper deal.

Black Friday bargains to be had

Catherine Hiley, telecoms expert at Uswitch said savvy shoppers could grab a bargain during this year’s Black Friday shopping event.

Hiley said: “This time of year can be a great time to get a bargain on a new mobile handset, especially if you are willing to go for one that isn’t the latest model. Providers often use these sales to shift older stock and will cut prices accordingly.

“If you’re keen to get your hands on the latest devices, consider picking a refurbished phone. This will save you money, particularly if you pair it with a SIM Only deal. Refurbished devices are often indistinguishable to full-price new models and come with a guarantee for added peace of mind.”

She added: “Some of the best mobiles deals out there don’t have to include a handset, so consider if you need one or if you are happy with your existing handset. There are a variety of excellent SIM Only deals on the market to suit every need.

“Some broadband and mobile deals also include virtual gift cards, which could go towards your Christmas shopping. You can also use cashback sites to maximise the benefits you get with your Black Friday buys.”

Top Black Friday mobile and broadband deals

When it comes to SIM Only offers, some of the best on the market this Black Friday are with Lebara, Uswitch said.

One of its strongest deals comes with unlimited calls, texts and 5GB of data for £4.95 per month, reduced to £1.98 for the first four months.

However, if you want extra data, for £6.95 per month you can get 15GB, discounted to £2.78 for the first four months.

Three also has a deal that offers unlimited calls and texts and 8GB of data for £6 a month. All these offers are exclusive to Uswitch.

Meanwhile, for broadband customers, it lists a top deal from BT, delivering 67 Mbps speeds and costing £16.99 per month for the first six months. This also comes with a £110 virtual gift card.

Elsewhere, it said it has seen some great deals from Community Fibre, including one for £19.99, offering 150Mbps speeds, which comes with a £75 Amazon voucher.