The Loans Engine has just paid out its first loan under its new £295 application fee structure.

The second charge loan for £30,000 paid out with Prestige Finance, at a rate of 4.45%.

It cost the customer £295 in fees. The Loans Engine claims this represents a fee saving of more than 90% against traditional master broker fee models, where a customer could have expected to pay around £3,000 for a similar loan, it said.

The application was introduced to The Loans Engine last Wednesday. The binding offer was issued on Friday and funds were placed in the customer’s bank account first thing yesterday morning.

Steve Harness, commercial director of The Loans Engine, said: “Intermediaries tell us how frustrating the first-charge further advance process can be, and that remortgage just isn’t right for many clients. Now with broker fees of only £295, low interest rates and completion timescales under a week, second charges are a credible alternative which deliver great customer outcomes.”

Dan Miller, underwriting manager of Prestige Finance, added: “We have a long-standing relationship with The Loans Engine and are delighted to be the first lender to complete a loan under its new fee structure.

“The quality of packaging by The Loans Engine ensured a smooth and efficient application process through to completion.”