For the skin condition, I see no point in guessing - get a scraping to the vet for a definitive diagnosis.
For the horns - I think they won't grow much more now he's 5. You can't take horns off to the head as they have an artery inside the pulp which would bleed massively, and they have nerves so it would be agony for the animal, unless done under general anaesthetic. All you can trim back with on-farm methods is the cool tip, ie beyond where the inside 'live' bit is - you can feel where this is by holding the horn in your hand, when you will find that there is a sudden change of the heat of the horn. For the cheese wire type saw (available from agric merchants), that is perfect for taking off the tips, although it's hard work. The very tips can be cut through with hoof shears or bolt cutters, but if access is not good then the cheese wire saw is the best choice, or a junior hacksaw.
There are ways of bending horns by heating, either with a blow torch or a steaming hot neep, but I've never tried that and never will.
The only true way to avoid horns too close to the face is to breed for slightly wider horns - it can be very hereditary.
Also, dragging a sheep along by its horns will twist them and damage the look, as well as being painful to the sheep (and counterproductive as they will always resist).