More than ten people were run down near Finsbury Park Mosque as Muslims finished Ramadan evening prayers.
Eyewitnesses reported seeing bystanders wrestle the suspect to the floor and pin him down until officers arrived.
The incident comes almost three months to the day since Khalid Masood killed five people after mounting the pavement at Westminster Bridge and stabbing a police officer to death.
Police were called just after midnight to reports of a vehicle in collision with pedestrians in Seven Sisters Road
Khuram Butt lies dying in Borough Market shortly after he was shot by armed police
The incident comes almost three months to the day since Khalid Masood killed five people after mounting the pavement at Westminster Bridge and stabbing a police officer to death
Earlier this month, three Jihadis drove into pedestrians on London Bridge before launching a knife attack in Borough Market, killing 8 and wounding another 48.
This morning, the leader of Finsbury Park mosque, Mohammed Kozbar, told The Sun: ‘Whoever did this, he did it to hurt people and it’s a terrorist attack.
‘We call it a terrorist attack as we called it in Manchester, Westminster and London Bridge.’
He added he heard there had been fatalities but did not want to ‘jump to conclusions.’
A Metropolitan Police helicopter was seen circling overhead as photographs posted on social media showed a huge response from the emergency services.
Dozens of police cars and vans cordoned off a large area of the normally bustling thoroughfare as stunned locals gathered at the scene.
Images on Twitter appeared to show a clean-shaven white man with black hair being detained by police officers behind a van, surrounded by a group of shouting onlookers.
One man was arrested at the scene. The suspect is pictured here being handcuffed next to a police vehicle
A pile of blankets can be seen, amid fears that there may have been fatalities in the attack
The vehicle in question appears to have been rented from a company based in Wales, Pontaclun Van Hire.
A woman named Hajal said her sister witnessed the immediate aftermath of the incident.
She told LBC Radio: ‘Everyone was just running everywhere she didn’t realise what was going on at first until she people on the floor.
‘She ran to see first victim and realised it was a family friend.’
‘An old man didn’t have a pulse. Police came and took over. She said it could have been an accident.
‘At first she thought there was some sort of fight. There were 15 to 20 people hitting somebody – she didn’t realise it was the man who ran over the people.
Rescue teams at the scene investigating as other emergency service members huddle together to discuss the operation
A heavy presence of armed police officers swooped to the scene shortly after the drama unfolded