Richard thinks it might be to do with the rear brake valve bias thing on the brake lines, not letting fluid return.
Rupert.....that is a possibility, but what happened with the test I suggested, with the car out of gear and running on axel stands? What you should look for is any difference in ability to turn wheels by hand, with engine not running and running. If you find there is no difference, then to test Richards theory, still with the engine running, apply the foot brake then release, then check if there is binding of the wheels.
I know that we have been concentrating on the back brakes because of the possible hand brake prob, but is it possible that the front brakes are comming on as well? If it were a master cylinder or servo prob, both front and back brakes will be affected.
You saying that the brake pedal does not return fully still worries me. I have taken some pics of mine to show where the pedal should lie, and I also notice there is no return spring fitted to the pedal. The only thing that returns the pedal to rest, is the internal springs in both the master cylinder and servo.
If the pedal is not returning to the same position as mine, then it is likely that the brake is being applied via the servo, also note that there is no play in my pedal when it is at rest. If as you say, it does not return by its self, then there is something wrong.
The results of the test I suggested will help eliminate the problem.
Dont give Up
John
1990 GTA Atmo, 2003 Jaguar X type 2.5SE Auto, 2018 Kia Picanto GT-Line-S 1.25