depending on how urgently you need the car you could try doing the job yourself, or finding a mechanic friend who'll do it for a couple hundred quid, or a hundred pints

the easiest way would be to source a replacement head and do a straight swap. whilst replacing the cambelt, tensioner, i also had to replace my pulley cog thing.
My car was 9 years old at the time, only covered 44k, but the cambelt still gave up.. basically down to age. the cost of parts is about £300-400, with private labour ontop ~£200, to total £500-600.
I estimate a mk3 16v on 103k is worth around £2.5k because of mods
Without an engine less than £1k.
The other option I had was to do a 1.8T 150bhp transplant, at about £1k for the engine +labour, but at the time, I needed the car.
Worst thing I found was that I couldn't claim the repairs on insurance, which I didn't know at the time.
Where abouts are you based?