The row over Northern Ireland Secretary Peter Mandelson's £373,000 home loan deepened last night after he was quoted as claiming he was the victim of anti-gay prejudice.

The Hartlepool MP, who is famously discreet about his private life, was reported in a national newspaper as telling friends there was ''more than a hint of homophobia about some of the reporting'' over the controversy.

The comment in yesterday's Mirror appeared as Mr Mandelson came under fresh attack from former Paymaster General Geoffrey Robinson, who gave him the loan.

In his memoirs, Mr Robinson has contradicted the Hartlepool MP's claim that he had not solicited the money to buy a desirable house in London's Notting Hill.

Mr Robinson yesterday claimed that pro-euro Mr Mandelson had undermined the Government by ''re-igniting'' rows over Europe.

Tory leader William Hague now wants the Parliamentary inquiry into the home loan to be re-opened although Downing Street dismissed the frenzy over Mr Robinson's book as ''froth'' and ''blather''.

Mr Mandelson was quoted in the Mirror as telling friends that Mr Robinson had been ''manipulated'' into attacking him, and claiming: ''I am being exposed to a deliberate and very ferocious hatchet job.''

Mr Mandelson last night disputed the Mirror report, telling the Press Association that the remarks did not entirely represent his views.

But Mirror editor Piers Morgan yesterday stood by his story.