Paragon lifted mortgage lending “marginally” to £1.1bn in the nine months to June from a year ago, but lowered its guidance for the rest of 2025.

The landlord lender said that earlier 2025 completions “reflected the stamp duty disruption on the opening pipeline”.

The landlord lender said that a stronger buy-to-let pipeline “built across the period” ended 27.6% higher its March 2025 level at £0.8bn.

The end of March also saw stamp duty thresholds rise back to pre-September 2022 levels, prior to the Liz Truss Budget.

But the business added that “growth in the pipeline mainly occurred towards the end of the period and consequently our full year volumes are expected to be around the lower end of original guidance but should support a more favourable start to the new financial year”.

The bank now forecasts new mortgage lending will come in at around £1.6bn this year. Previously, it had given a range of between £1.6bn and £1.8bn.

The firm’s loan book — which also includes other types of commercial lending for cars, asset finance and development finance – came in at £16.2bn, up 1.1% during the quarter and 4.8% higher from a year ago.

Paragon chief executive Nigel Terrington said: “The momentum in our business and the resilience of our business model means we are well-positioned to continue supporting our customers and delivering strong returns for our shareholders.”

Shares fell 9.2% to 864.5p in mid-afternoon trading.