Specialist finance broker The Loans Engine has paid out its first loan with an application fee of £295.

The new model dispenses with fees of up to £3000 charged for comparable products.

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

Last month The Loans Engine announced it was scrapping its all-encompassing master broker fee and replacing it with the new £295 application fee.

Dan Miller, underwriting manager of Prestige Finance, said: “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.

Steve Harness, commercial director of The Loans Engine, added: “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.”