I have done one module with the OU, and there were no exams, only tutor marked assignments. However, further courses did have exams and these were held in a centre about 20 minutes drive from where I was living. There was also optional in person tutorials, but these were only every one or two months.
As for student finance, like mentioned above, you cannot apply for a maintenance loan, only the tuition fee loan. The exception being if you cannot physically attend university in person due to a disability. There is strict evidence criteria for this, so it’s hard to get, but not impossible if that is why you are studying from home. Hope that helps.