Mortgage interest relief on Inv Prop- Is it capped

I am converting my PPR to an investment property. I believe mortagae interest is allowed in calculating my nett income from this property. Does anyone know how much interest is allowed i.e. say I originally purchased the property for 120k (with a mortgage of 100k), I have since paid off 30k of this so my existing mortgage on this proprty is 70k. I will however, re-mortgage this property to an amount of 200k. Can I get relief from the interest i will pay on the 200k or do revenue cap the mortgage interest allowed at some other figure? (e.g. the original purchase price of the house).......Many thanks,

There is no mortgage interest relief on investment properties. You can however offset 100% of mortgage interest on any loans used to purchase/renovate the investment property (no matter what property or asset they are secured on) against rental income. If a particular loan is split between funds used to purchase/renovate the investment property and for some other use then you calculate the interest pro-rata when apportioning it.

Thanks Clubman,
As you rightly point out, I did mean could I offset the mortgage interest against rental income. If I understand you correctly, in my case I can only offset the interest I am paying on the original loan (mortgage) I took out to purchase the property. I have actually switched lenders and so the original loan has been repaid (because I remortgaged with the new lender)- can I offset the same amount of interest that I am paying on the new loan?
Many thanks,
Sport

If any top-up on the original loan was not used to purchase/renovate the investment property then only interest on the amount outstanding when the property became an investment property would be allowable against rental income (e.g. €70K). If in doubt get independent, professional tax advice.