Remortgaging Decision

HeartyMac

Our current Mortgage deal with the Northern Rock ends in December and we need to look at a new deal, the mortgage is due to run until 2013. We have £156000 on Interest only and £15000 repayment, so total mortgage £171000. £106000 of it is interest only and is meant to be covered by 3 endowments, 2 of which L&G aren't performing that well, one is sort of ok. £50000 is not supported for the capital as we borrowed it with a view to sell a small property left to us, which we hope to put on the market early next year. NR have just offered 3.99% fixed at 2 years but with 2% charge and have said we can pay off any of the mortgage without redemption charge. The new deal will reduce our monthly payment from £891 to £705 (if we just leave it to variable it shifts to over £1000 in January). The 3.99 sounds attractive 'cause of the lower monthly payments but I can't do the maths to work out about the heafty charge, can anyone help me out? We have seen other reasonable deals, especially with Britannia cause they are offering remortgages without fees for 5.39%...I am totally confused..any advice would be useful...thinking it might be wise to see an FA but not sure which one!