Its just a slow thermostat, change it for the sake of a fiver but the temp fluctuation you are seeing is quite normal.
The heater in your car is an extension of the radiator, by opening up the valve you increase the cooling of the engine causing it to drop in temperature, closing it makes it go up...
The wax/bi metal in the thermostat takes time to switch causing the fluctuation.
On a cold day with the heating on from start up you are increasing the cooling making it hard for the engine to heat up...
A good trick for limping an overheating engine home is to run it on full heat with full fan, b!tch if its July
My GTI runs just above 1/4 on the gauge on the motorway with the heating on at 70