Ah.
It's likely you are going to be rejected. While CIC understands that there are financial barriers, those aren't enough to stop you from getting married in either Canada or the UK.
Conjugal is for very specific circumstances - as has been said, it's for countries like the Philippines, where divorce is illegal, and living with a married person is illegal, so it is literally IMPOSSIBLE for a couple to either get married or live together. Same wtih countries where homosexuality is illegal - the couple cannot get married, and would be risking their own personal safety by living together. Even in those situations, if the non-Canadian has not at a minimum at least attempted to apply for a TRV to come to Canada in order to get married, the application is often refused until the couple shows that.
Couples applying as conjugal literally have to show that they have tried every possible means to either live together or to get married and have to prove that they are unable to do either of those things.
In both your case as in Canrish's case, there is nothing to stop you guys from getting married. Saying you can't afford to live together for a year, or you don't have a visa, or whatever, doesn't stop you from going to the courthouse and obtaining a marriage license.
Please keep us updated on the outcome... If CIC gives you the opportunity, either do what katahafax did and get married ASAP, or otherwise withdraw your application, get married on your own time, and then reapply.