Did a masters in order to make up for my BA marks. But I did worse. What now? A second MA?
Your explanation of being in the humanities with no 'industry' for you begs the question... why are you pursuing advanced degrees or maybe asked another way... what do you hope to do with your life once all degrees have been attained? If you can focus on that instead of focusing on attaining the grades to get into the prestigious university vs. a lesser known one; and how it will be perceived by the respective schools you may come up with the answer on your own.  A PhD at any respectable university is an accomplishment in and of itself, and one that you would/should be proud of. Inevitably, whether you get into a top tier university or a lower tier one, what you get out of it depends on what YOU put into it. Whether it is an 'industry' or a career or a profession or a job, that is what will await you when schooling is done.  Try to focus on what you want to be doing after school then pursue any school that can give you a credible education towards that end, and then move forward and don't look back! So in answer to your original question... don't waste another two or three years on an additional Masters degree, move forward, and take what is available to you.  Good luck!