Open University study is classed as part time study.
Part time study where no qualification was gained will not affect entitlement to funding.
Where you are actually ordinarily resident at the time you apply for the support, assuming that this is prior to the first day of the first academic year of the course, usually determines which award authority you should apply to. For example, if you are living in Scotland when you apply, as that is your home and you have not just moved there to study the course, you should submit your application to the Student Awards Agency for Scotland.
Thanks so much for the quick response!
So, just to clarify, despite me having already been funded for a second year of an hons I will still be eligible to be funded for another second year because thus far I have been getting part time funding?
Yes, as long as you have not gained a qualification from the OU course, you will be able to get full funding for the full time course.