>>I don't really have a 'budget' but rather I want reliabity!!
Buy Japanese - Mazda 3 petrol, Civic 1.8 petrol, Toyota Auris petrol .............
I assumed the OP had their heart set on a Golf, or at least VAG in general, otherwise I (and am sure SLO as well) would've suggested these, although with their £12k budget they should get a reasonably newish Leon 1.4 150 ACT FR for their money - I was seeing early this year new ones offered via brokers for around the £15k mark, so one uaround the 2yo mark would be around the £12k level or so.
I test drove the 1.4 122bhp engine (admitedly in a Scirocco) and I thought it was fine as well, and at least that engine is normally in the more affordable 'SE' models in the VAG ranges, and has the added benefit of being mated to cars shod in higher profile tyres which normally give a more comfortable ride than those on 18in rims. I'm sure the extra power, better suspension (handling wise) and ACT facility is worth it if they can afford it, given the good reviews cars with it get from BRers.
A lot probably depends upon what type of driver the OP is vis-a-vis comfort, value and performance. If I recall there's not much in it mpg wise between those two engine variants, presumably because of the effect of the ACT system.
If I were the OP, I'd make damn sure they had a budget for the car, including all running costs (including insurance) over its ownership life and saving up for a replacement - no use buying a car you can't afford to run (including hoping it'll never go wrong! always budget for a few reasonable replacements being needed over a 5-7 year period, such as a clutch, brake pads/discs as well as [quality] tyres and, in your case, drive belt and ancillaries [incl. water pump?]).
You may find you might not be able to afford any of the cars spoken about (especially if you have more important things at home to save for - new home, furniture, boiler, roof repairs, marriage, baby on the way, etc, etc), or, if you've been prudent with your cash, perhaps a bit more, even a new car such as a nice SEAT Leon (standard or [nicer looking] SC) 1.4 FR 150 ACT, or the more reliable Japanese cars from above. Have a thorough look around, both on the reviews/cars for sale (incl. new ones via brokers) section of this website and online/at the dealers/car supermarkets if your in no hurry to buy (best) so can make the most informed decision you can.
Always get a decent length test drive (you don't need to tell a dealership if you are more likely to buy via a broker or car supermarket beforehand, but haggle to get the best price and don't commit to buying then - you can always return or wait for another car if its gone - many about) over a wide variety of roads and speeds, and not just a trip round the block for 15 mins as some dealerships want: at least 45 mins and preferably by yourself.
If you do go for one of the VAG options and as you want reliability, DON'T go for an automatic from any of their makes - even though they have apparently improved the design of their 'DSG' gearboxes over the unreliable ones, the latest (in some, but not all cars made in the last year or so) are not yet proven in the long term and still suffer from some 'operational issues' such as sometimes hesistating when accelerating from a standing start. Hopefully you don't as that'll start another round of ifs and maybes in terms of which car to go for from other makes.
Best of luck.
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