mazda 323 1.8 exec help please

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hi all
i have a mazda 323 1.8 exec 5dr hatch,n-plate 1996,it's done 108,000 miles,i've had this car fourteen yrs,it's had a slow water leak for a couple of months,i check and re-fill water bottle approx twice a week.
doing about 80 on the motorway the car seemed to slowly loose all power,i managed to get it in the hard shoulder ok,the r.a.c said it lost all compression,cyl head gasket blown,did not notice if temp gauge went right up or not but smoke\steam comming out of engine.
got the car towed home,a mobile mechanic came out and said the timming belt had gone as well as cyl head gasket said he could repair for £200 plus parts,he reckons valves and pistons will be ok and engine block won't have warped.
i don't mind paying the money as long as the car works ok
do you think a decent mechanic would know if the engine was knackered before he continued with the rest of the work or is it too difficult to tell until finished.

thanks for any advice
 
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The head gasket diagnosis sounds about right but not sure about the timing belt going as the mechanic says. The cylinder head can be checked for warping when it is removed, not sure how he can say its ok without removal and inspection. Be carefull as some cowboys will just put a new gasket on and not check it correctly
You may be ok if the engine didnt severly overheat but i would be looking for a second opinion on the work
 
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