Are you somehow going to a local university and you dont have accommodation to worry about?
One of the most common failures of people with mh issues is not asking for help or hiding/ burying their heads in the sand. Worse strategy you can follow.
Cooking dinner at the moment, but drop me a pm and will see if I cna help.
If you are at home or stable in your accommodation then you wont have a student house to worry about or do you?
Once your accommodation is stable you will have to get a job.
You can apply for benefits now as you are no longer a student. Not much but might make the difference.
You should be awarded a certhe which is equivalent to a HNC first year of uni.
As for student finance it normally goes degree length +1 gift year.
So yours would be:
Degree+1
First year takes it to degree+0
Second year takes it to degree-1
Repeat second year takes it to degree -2.
That means they will pay fees from year 3 onwards or final year in most cases.
You can make an appeal for compelling personal reasons. If you have enough evidence and GPs letter then you can be awarded one years finance back so you could try for two, years but lest say you are successful with one CPR claim.
Finance would then go to degree-1 i.e they will pay for year 2 onwards.
As you have a cerrthe, then you just have to find someone to take a transfer to year 2 and onwards.
The alternative is to transfer credits to the OU for first year and see if they will take your second year credits, except one module. Resit that module/ pay for it and then finish year 3 as normal. I dont know if OU will take partial years credits? It would make it possible to get a degree when you are ready though.
Those are the things I would be looking at. Not easy but then you got yourself into a tricky situation, but worth pursuing. Not pleasant but you just have to start dealng with it. You still have some chances.
http://www.open.ac.uk/courses/apply/credit-transferhttp://documents.manchester.ac.uk/display.aspx?DocID=25908