"I'm sure we'd be happy living there, and with the deposit we have saved up I'm reasonably comfortably with the mortgage whatever happens to interest rates. I'm just concerned if we might be screwed if we suddenly needed to move in the near future, and found ourselves entirely unable to sell the place."
Have a look at London etc where the housing market has already peaked. There is another question you should be asking yourself.
Am I prepared to accept a drop in the house price that could wipe out all or most of the deposit I put in?