Fixed Rate: Time's running out

gonnagetdebtfree

Okay - who's got the brains for a real-life moneysaving challenge?

In brief, in 7 months time our 'two year fixed rate' runs out.
We borrowed £120,000, a 100% mortgage (remember those), at 5.95% from C&G. We will have prob. paid off about £5k by June, when it ends.

By my calculations that's 95.83% left to pay on the loan?

Factor II...

We also have 2 overdrafts totalling 2,800k (yes, I know, sorry!) that I'm trying to pay off, which both incur interest of 18% or so (apr?). One is the account I live out of, it's in the black for just a day a month when I get paid.

So I've got some decisions to make.
We currently have £150 spare a month. If we really push ourselves I could stretch that to 200 or even 300 with no treats.

My questions...

1) Where should this £150-£300 a month go?

- Should I put all or some into OVERPAYING the mortgage? At best I think I could only get the mortgage down to 94% left. Is it worth it? there's only 90% mortages now anyway - so maybe I should concentrate on paying off the 2 overdrafts, and se free up cash to make the £100+ my mortgage will cost when I'm forced onto a variable rate of 6.5%+.

2) What if I'm in negative equity? Very plausible since I bough in 2007.
How will that effect things? Will I lose the house?

Please help moneysavers!

D