The majority of Brits are unsure of what a one per cent difference in mortgage rates can make to their financial situation, according to a new study.

Nationwide said that 75 per cent people do not realise that a one per cent difference in rates on a five-year fixed-rate deal could result in homeowners saving £4,000 a year, with women less likely to be aware of the impact a good deal could have on their life than men.

Matthew Carter, Nationwide Building Society''s divisional director for mortgages, said that while it may seem like the "less hassle option" to simply choose a deal that looks good, people should ensure that they shop around for a mortgage or risk "wasting thousands of pounds".

"After all, a £4,000 plus saving on a five-year deal for a couple of hours of work is a pretty good return," he added.

Greater focus has been placed on the mortgage market in recent months as lenders become pickier about how they give loans to in the wake of the recent credit crunch, with many increasing the rates on their products.

According to the Council of Mortgage lenders, the average mortgage rate on offer in September stood at 6.02 per cent in September, up from 5.91 per cent in August.