Chad reassured her: "No, I would never".
"I know it's just a game but I just think, what am I doing so wrong that even Derek [Acorah] did it?"
Asking if Sarah was naked under the towel, Chad then asked the pretty blonde if she wanted to "Netflix and chill" later that night - widely accepted code for having sex. "She says we got caught up in the emotions, but I didn't get caught up, I knew I liked her". You're just starting out.
CBB viewers quickly took to social media to express their shock and disgust at the Sarah and Chad's raunchy antics.
The duo, who officially became girlfriend and boyfriend a few days ago, shared a bed for the first time and got a bit carried away.
'I could've done without seeing Sarah rubbing Chad's d***,' one wrote on Twitter, whilst another said: 'Some things U REALLY don't wanna C on #CBB Can someone pop Sarah Harding a note thru that there are actually cameras in there!
CHANNEL 5 HANDS ON Chad let Sarah have a feel of the goods
An insider said: "There's a lot of heavy petting going down between the couple".
'Viewers can draw their own conclusions about what happens but it's pretty clear'.
"What is your drama?" a puzzled Chad asked.
In a twist, however, any housemate who received a nomination this week will face the public vote, not just the housemates with the most nominations.
But Sarah is less convinced to whether Chad's confession is genuine.
Two of the stars will be evicted on Tuesday (22.08.17).
She told housemates: "We won't be having sex on TV".