How long do you intend to keep the car before getting something larger? That assumes you are going to head that way (I did).
When I was 18 in 2003, I had a £3000 1997 R reg 1.25 MKIV Fiesta Chicane. I racked up 30k miles in 4 years and sold it part ex for £1500 with the miles at 50'000. Not too bad for a 10y/o car at 50k. Took me all summer to save up for it, but so glad I did.
My advice to you is to think carefully about what you buy for £1500. I looked long and hard at many cars in this price range before deciding to buy at the £3k bracket. My example cost me barely a penny to run in expenses, other than rubber and general consumables (oil changes, air/pollen filters etc), though I get the feeling a completely cheap motor could have cost a few bob in repairs.
Normally, you wouldn't mind; but as I was a student, I needed something that would hold out until I got my degree and could afford something better. If you are planning to keep the car a while longer and the bank of mum and dad won't fund it, then think long and hard