I just fixed this on my apache2 on ubuntu.
I did the following went to etc/apache2/apache2.conf
<Directory /var/www/>
Options Indexes FollowSymLinks
AllowOverride None
Require all granted
</Directory>
and change it to;
<Directory /var/www/>
Options Indexes FollowSymLinks
AllowOverride All
Require all granted
</Directory>
I used the following guide to fix it,
http://stackoverflow.com/questions/18740419/how-to-set-allowoverride-all
I fixed all whole issues. After a long search. what I did was made the owner / group of files www-data also made 777 permissions.
2nd issue was after this post was Permalink Settings
That was fixing apache2.conf and doing the following
<Directory /var/www/>
Options Indexes FollowSymLinks
AllowOverride All
Require all granted
</Directory>