yes
if you're applying for a scholarship in the same course, you just continue - there are a few 2nd/3rd year eng scholarships floating around for minority groups. if you're going to apply for a scholarship for another degree, you could probably get some exemptions if they're related (like engineering degrees) but you'd have to do the core subjects again (i think)
and go for a DN average to be safe. usually there are lots of applicants