talking about a mk2 are we?
could be low coolant warning (or faulty/dirty electrodes in the expansion tank), not sure the mk2 had that already, my mk3 certainly did.
could be faulty temp sender but you can check that with a multimeter easily. i posted a guide in mk3 section few times, the temp/resistance curve on a mk2 is pretty similar but you may still have two separate senders depending on engine