Wolves signed Bywater on loan in July 2001 to ease a goalkeeping crisis but he returned to West Ham the following month having not made an appearance for Wolves other than on the bench in the opening game of the season against Portsmouth. His chances to move up the pecking order were limited with the club signing David James in July 2001 and the retention of Shaka Hislop as James was injured on international duty in August 2001, and he did not make a single appearance for West Ham in the 2001–02 season nor in the 2002–03 season. He joined Cardiff City on a one-month loan at the end of March 2002 but made no appearance there.