Since I bought the car it, had an odd squeal on the back end at motorway speeds but more recently like the last week or two is started doing at sat normal road speeds and developed a grinding noise too. I had a look a week or so ago and noticed a very thin (2mm max) line had appeared right on the discs edge, so planned to take the pads out tomorrow, they seem to have plenty of life left from what I could see. Anyway had a look again about the mins a go and was shocked: Brilliant! God knows whats causing that, not sure i should take the pads out now as I don't have any replacements. Do the discs have the bearing built in too?
Ok, you have worn through your rear pads and are now onto the metal backing plate, hence the grinding noise when you brake. I suspect you have left it a bit too late to recover the discs, so you will have to replace the pads and discs. The giveaway when your pads are low is that they starting 'chirping', this usually happens when your brake pads we are below their recommended minimum thickness. Can be difficult to differentiate between that and just squeaky brakes, but is a good indicator.
Cheers man, it's in the garage today, outside pad has worn right down due to the calliper sticking. New discs and pads being fitted as i type.