I was planning a water birth too but my hospital just got rid of the room a few weeks ago. Grrrrrrr! About the umbilical cord, it will most definitely be wrapped around the babies neck, but the beauty of a water birth is your care take will unwrapp it before you baby is brought out of the water to take its first breath (usually before you've fully delivered his/her whole body) its a lot more slower process then a bed birth, meaning its more laid back when it comes to pushing smd delivering. Water births are great, and provide less stress for you And your baby naturally. Im really bummed I won't be able to have one :( but not trusting your midwife is not good, with any type of birth, a great support system is key I think. Best of luck to you. Try not to stress and you are not selfish at all!
Water birth sounds nice and I know people who have done it and had a great experience. Personally, I wouldn't feel safe delivering outside a hospital. I want to make sure that if something was to go wrong that help is available immediately. If you don't feel comfortable, go with your gut.
If ur midwife dnt have up to date stuff it would be better if u deliver at a hospital juzt to be on the safe side bexuz with the oddz with somerhing happening u would be sent anyways to a hospital just save time and be safe then sorry