Don't underestimate the value of the tracker.
Although it may seem expensive, here the old adage holds true: you get what you pay for.
Don't solely look at the short term rates issue, I am presuming your mortgage has a lot more than 5 years to run. Say it has 25 years to run, that means that if you go for the variable rate you are at the mercy of the banks for the next 25 years as to whether they increase rates arbitrarily and whether they pass on the ECB rate reductions when they occur. You go for the tracker and your rate must follow the ECB. The whim of the banks or the certainty of the ECB...I know what I would opt for.
As househunter! said those rates are awful, if you would prefer a variable rate and your loan to value (mortgage outstanding versus current value of property) is less than 92% then you could get a variable as low as 2.65%. If you are stuck with PTSB then think carefully before you ignore the tracker.
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