Mortgage interest rates

i'm coming to the end of a first 2 year term and interest rates are changing. I've been offered ECB + 1.25% tracker which is 5.5% or disc std variable rate 5.4%. My ltv is between 50%-60%. What do people think? , i'm inclined to go for the higher rate on the basis that maybe 1 or 2 rate changes are coming our way next year and the variable rate only changes at the banks discretion and i might not see the benefit of ECB changes. Bit confused? any advice welcome.

Berbatov said:

maybe 1 or 2 rate changes are coming our way next year

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or maybe not, I wouldn't try and read the market but given the choice of a variable or a slightly higher tracker then I would definitely go for the tracker.
If your loan to value is only 50/60% (give current price drops) then you should get a better rate than ECB +1.25 % elsewhere but there may be legal fees involved in switching. It depends on the size of your mortgage whether it would make sense to pay these legal fees in order to save more over the term of your mortgage.