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Spongey brakes '91 Polo - horatio
Is there any way I can determine what exactly is causing the spongeyness?

Here's what I do know

Engine off brakes spongey but can be built up after pumping and remain good, until engine started, then they are spongey and remain spongey whilst driving. Very rarely a bit of pumping with engine runing can solidify brakes.

Brake fluid level constant

This to me means it's not air, it's not the vacuum, could be the hoses expanding - I will try to inspect them.

Leaves only the master cylinder......Is this what you think?
Spongey brakes '91 Polo - mr_b
this is most probably the seal in the master cylinder on its way out
Spongey brakes '91 Polo - Civic8
Could also be caused by leaking wheel cylinders-remove drums and check under dust covers,if wet ie brake fluid thats the problem
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Steve
Spongey brakes '91 Polo - horatio
I decided it could be air couldn't it. Because repeated pressing the pedal with engine off would be just squeezing the air bubbles, but I can't see why air would be in there.

Would a broken master cylinder exhibit these symptoms? the fact that with engine off the brake system can be brought up to pressure?

I don't think it is a leak because the level is not going down. I think I should first try bleeding? yes? ..but before bleeding if I get the chance I'll try to remove the two rear hubs to have a look.
Spongey brakes '91 Polo - Civic8
>>I don't think it is a leak because the level is not going down.

If only a small leak,that will cause it without any evidence of fluid drop.thing is *if* it is a leak air will enter,I would make it first thing to check for, then look deeper
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Steve