O2 already offers a Refresh contract that allows you to upgrade your handset whenever you feel like it. Now it’s extending that to other O2 users with Speed to Refresh.

Not only does Speed to Refresh allow current customers to change their deal to the Refresh contract, and get a new mobile, but O2 is currently also discounting 25 per cent of the remainder of their current contract as a welcome. This amount is deducted from the contract which the person is buying out in order to start the O2 Refresh contract.

O2 Refresh works by splitting the monthly contract into two: one part for the airtime bundle and one for the phone. This means you can upgrade your phone whenever you want without having to waste money paying off an old line rental contract. And if you hang on to your handset for the full two-year contract the bill will halve as you pay for only the airtime bundle.

"Our customers love O2 Refresh and since we launched it more than 95 per cent of customers who could buy O2 Refresh have chosen to," said Gary Booker, O2's interim marketing and consumer director.

Speed to Refresh is available to any existing O2 Pay Monthly customer who signed up to a consumer tariff between 1 January 2011 and 31 March 2013, is still within the minimum term length of their contract for at least three months and is looking to move on to a new O2 Refresh contract.