nogojones
spelling is overrated
Victorian houses were sometimes built with shit mortar. It's hard to judge the quality of yours, give it a good poking and see if it starts falling apart easily.I would make sure the arched bricks are bonded together well before doing anything else. Then start by carefully removing the bodged up bits between the arch and the yellow bricks. The rest can then be removed but probably best to drill the mortar out between the bricks rather than thrashing at them with a hammer and chisel.
If it doesn't, I'd say you're good to go and just break out your kango/SDS. If it looks a bit shit invest in a lintle half a brick bigger than either side of your blue line - they're cheep, carefully chop out that section and fit the lintle. Re-point all the bits above, then break out your SDS. The worst that will happen is you loose the original arch. You'll have to make a decision where your lintle will go, hight wise.
Once it's open you can get your chimney tested for leaks/ damage/brickfalls.
Are you looking to put an open fire or burner in there? If it's a burner check out what the HETAS regs are in terms of hearth size clearence space of the burner etc... This might inform your chouce of where you put a lintle if you have to.
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