Prince William and Catherine Middleton in Mustique

Prince William and Kate Middleton are believed to be staying at the five-bedroom £1,785 a night Villa Alumbrera, the most opulent mansion on the island of Mustique in the Caribbean.

And press speculation that the long-awaited royal engagement is not far away has been fuelled by reports Kate would like to be known as Catherine.

Kate is addressed as Catherine by royal staff and has always been called Catherine by her family and friends.

"No-one ever referred to her as Kate - ever," says a former classmate.

It seems that Kate was called Kate by the media as it was shorter than Catherine.