We finally have a buyer for our place - great. However, it seems that for our onward purchase we have the option of either borrowing to the maximum to get a house or settle for a rubbish flat (the only one we are close to getting our offer accepted on is quite small and run down). We're in London so it does feel totally insane to be borrowing our maximum but on the other hand ended up in a run down flat with a kid also doesnt seem ideal. My parents are advising us to go for it and just get the house we want but with the rising interest rates, I am feeling very unsure. There aren't any two bed houses in this part of London and we are stuck here because of schools. We tried to put offers on nicer flats but our offers got turned down. Any pearls of wisdom from MNetters?