In the London attack, a van ploughed into a crowd of Muslims near a mosque early on Monday, leaving one person dead and injuring 10 others in the second terror attack this month in the British capital.
The large white van driven by Osborne apparently swerved into a group of Muslims who were leaving evening prayers.
On Monday afternoon, police confirmed the 47-year-old was also being held on suspicion of "the commission, preparation or instigation of terrorism including murder and attempted murder".
This marks the fourth terrorist incident in the United Kingdom in four months, after attacks in Westminster, Manchester and on London Bridge.
Ivanka Trump called for building bridges with people of different faiths in the wake of the attack at a north London mosque.
May said police would assess security at mosques and provide any additional resources needed ahead of upcoming celebrations marking the end of Ramadan.
The man has not officially been named by police by BBC and Sky sources have named him as Darren Osborne.
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Witnesses described hearing a man, who was detained by members of the public at the scene, shout: "I'm going to kill Muslims" and "I did my bit".
May said she would chair an emergency security Cabinet session Monday. "My thoughts are with those and the community affected by this bad event", Opposition Labour leader Jeremy Corbyn, who is an MP from the area, said as he paid a visit to the site. "I just can't believe it". We unreservedly condemn all acts of violence which seek to undermine our society and foster hatred and intolerance.
Scotland Yard said the attack unfolded while a man who had taken ill was receiving first aid from the public.
"I would like to ... thank our imam, Mohammed Mahmoud, whose bravery and courage helped calm the immediate situation after the incident and prevented further injuries and potential loss of life", said Toufik Kacimi, the chief executive of the Muslim Welfare House. "Our prayers are with the victims".
Following an Islamist-inspired van-and-knife attack in the London Bridge area on June 3, the city saw a sharp rise in anti-Muslim crimes. In March, a man plowed a rented SUV into pedestrians on London's Westminster Bridge, killing four people before stabbing a police officer to death outside Parliament.
Manchester was also hit on May 22 when a suicide bomber killed 22 people at an Ariana Grande concert.
Anyone who witnessed the attack or who has any information that will assist the investigation is asked to contact police in confidence on 0800 789321.
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