Storm clouds looming

Storm clouds are gathering. In the space of a few days the biggest mortgage lenders have suddenly scrapped their most popular fixed-rate mortgages. No prizes for guessing why. Interest rates are gradually creeping up. Another rise is expected from the Bank of England in November, with the possibility of a further hike in the New Year.

Older folk who took out mortgages 30 years ago and saw interest rates shoot up and down may wonder what all the fuss is about.

The difference today is that wages have failed to keep up with rocketing property prices. People have been forced to raise vast amounts, borrowing four or five times their annual salary.

All their sums have been based on two fervent hopes.

Firstly, they hoped that interest rates would stay low.

Secondly, they prayed that house prices would keep on rising.

But what if last year’s 4 per cent mortgage is suddenly hiked to 5.5 per cent, or more?

What if house prices start to tumble?

In 1990 the housing bubble burst. Millions found themselves in negative equity. Tens of thousands of families were forced to leave their homes.

Chancellor Gordon Brown likes to pretend that his prudence has ended the age of boom-and-bust economics.

The truth is that all economies go in cycles and that Britain’s house-price bonanza could not last for ever.

All it takes to turn boom into bust is a few thousand first-time buyers looking at house prices and interest rates, and deciding this is not the right time to buy.

We could be closer to a bursting bubble than anyone dares to admit.

If it happens it will be bad news for home owners and terrible news for Gordon Brown in his bid to become prime minister.

Here is a man whose political reputation has been built on a much-hyped double act - Gordon and Prudence.

Prudence is suddenly looking not so prudent and Gordon is looking not so electable.

Hoping you get well soon, Ma’am

The Queen was unable to attend the opening of Arsenal’s new stadium owing to a bad back.

This rare cancellation of an official engagement is a reminder of how fit Her Majesty is at 80 - and how much we take that fitness for granted.

She is a youthful 80 and, given her mother’s longevity, there is no reason why the Queen should not be performing public duties for many years. But she is entitled to take things easier and if that means fewer appearances, we will all understand.

In the meantime, our best wishes for a speedy recovery, Ma’am.