Instead of using the a guide drill it would have been better to use the blunt guide rod. The surface you wanted to start in must surely be quite weak (not brick like) to have opened out so much. I don't think the guide rod protrudes much more than 20-25mm from my core drills. Most of the kit was obtained from Screwfix although I've added some stuff to it later.
I suppose you may have been trying to drill from inside. I don't suppose you can get access to it from the other side? Perhaps that was why you were drilling 127mm?
If all else fails and you are really shafted then I guess you can fix a couple of battens on the wall in a V so as to support the drill until it starts.