NOTE - If somebody else replies before me after I’ve typed all this out [:@]
The first thing that you will notice when you begin searching is that prices vary hugely - there are 15 year old MK1s for sale for more than 2 year old MK3s.
You should be able to pick up a sound MK1 for that sort of money, maybe even a reasonable MK2 - it just depends on your luck.
Between UK/Import, you will get different opinions from different people.
Japanese cars usually have a higher spec, often having a/c and electric windows etc. when at the time the UK cars had nothing.
However, the big down side is that there are quite a few insurance companies that do not cover imported cars, which can have a big difference in your premium depending on your situation.
For instance, I’m an 18 year old student, never made a claim (1 full year no claims), but would pay around £2000 more to insure an imported car, because the two cheapest companies for me do not cover them - if you are middle aged, with a fairly clean license & recent history, you probably won’t even notice a difference…
Parts are fairly similar for the two cars, with only minor differences, so there is no real worry there.
Rust is the biggest problem with older cars - check the sills, and the rear arches in particular, since these areas tend to be weak spots, but needless to say, check the whole car.
Mechanically they are very sound, so mileage should not be a concern (but the lower the better) - the cambelt should be changed at 54,000 miles, and argueably 6 years (depends who you ask), so budget a bit for that if there is no evidence of it being done (although the engine is non-interference, so it won’t be wrecked if it breaks).
Engine wise, I would go for the more powerful 1.8, but that depends on how you are going to use it, but since it is a summer car, presumably fuel economy is a smaller factor than performance.
Good luck, and welcome to the site!