I've got some mates who graduated from Loughborough uni in Mech Eng, that seems to be good. Sheffield is a nice uni, your best bet would be to go for a visit to them on open days (or arrange your own if you can).
As for levels, its generally A-Level or equivalent (GNVQ's etc) to get in, so 6th form or higher education college. Mech Eng is quite high levels to get into. Take a look at the UCAS website, order some prospectuses and that will give you more info.
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