l have a peugeot 306 and today l stoped at a set of lights and pulled the handbrake up and there was nothing at all? l then noticed that the brake had buggered up 2. before the brakes were responsive. now the pedal nearly goes all the way down to the floor before the car will brake. l have checked the fluid level and it is fine. can anyone help as l do not wanna spend much to fix it

first idea:
Your 'master cylinder' is very weak, & does not provide enough pressure on the brake fluid. A spongy weak brake pedal is an indicator of this. You should be able to apply full pressure, even standing up on the pedal, without a slow oooozing pedal going to the floor.

Second idea. You have a leak in ur brake fluid line. You checked the level, & it was OK, but it is slowly being squeezed out, & u have no real pressure in the lines to the rear. Check ur fluid again, today..lower?
The handbrake lever pulls on cables to tighten the rear brakes, & has nothing to do with fluids or fluid level. IF IF IF, u have a broken brake shoe (pad broke loose from metal shoe?) You will have no stopping power.
If ur 306 has 4 disc brakes, perhaps the rear caliper pistons r stuck in position, & NOT sliding in & out to squeeze the disc?

Third. Is there a company that offers free brake inspection in ur area? Have them diagnose the problem, & then set to work fixing it on ur own.