Best way to use my Verizon iPhone 5 while studying abroad in London

I was told that I can put the phone in airplane mode, turn wi-fi on (wherever I have it) and there won't be any extra charge on all apps/texting/calling.
I was also told that in addition to doing this, I can buy a SIM card in London for calling/texting in a pay-as-you-go manner.
I know very little about cell phones/data plans/SIM cards/anything technology-related, so I would like some clarification on this stuff. I know the international plan from Verizon (especially for 3-4 months) is astronomical so I'm looking for the cheapest/easiest way I can use my smartphone abroad. For the most part, I would just be texting with people back home who also have iPhones, so we would be using iMessage instead of texts (which counts as data, correct?).
I'm clearly clueless about this stuff, please help!

There are 3 big providers in Hungary: t-mobile.hu, telenor.hu and vodafone.hu. Their websites are working in English, too, so you could check them out before you actually get there. T-mobile and telenor definitely have pay-as-you or prepaid plans. I also know from experience that telenor's phone customer service also is available in English locally but I assume the other two have that, as well. If you want to use your Hungarian sim card anywhere else in Europe, you will pay for roaming but I don't know much about this piece to the picture. Enjoy your time in Budapest! It's a great place.

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