The handbrake set up looks right to me . Make sure you have a bit of the outer cable showing on the engine side of the adjustable nut. Connect one side and pull the cable through and the measure and fit the nipple to the other side. You should then have enough adjustment to tighten it up.
My clutch cable is similar but I've twisted it so it's vertical and it lines up a bit better. I'm going to fit a wire holder to the engine mount.
Total cost so far