Rear Fender

At a point now where I need to start thinking about the rear fender. Its doing my head in as I cant decide if I should mount it on the swing arm or the rear of the frame.
One has the fender close to the tyre at all times but might not leave space for the brake light I have and the other will have the fender sitting high above the tyre which I am not sure I want.
Here are a few pics of what it might look like, opinions welcomed.

Up on high or

hugging that bitch?

and here is a pic of one of our cats wearing a hot water bottle cosy looking very unimpressed