Updated 3.04PM: Mark Lundy joked that a prostitute was his alibi, the night his wife and daughter were killed.

Lundy's on trial in the High Court in Wellington for killing Christine and Amber Lundy in 2000.

The High Court in Wellington has heard from his sister-in-law Andrea Lundy.

She says he told them, days after the murders that he'd hired a prostitute the night his family was killed.

Her husband commented, that was Mark Lundy's alibi, to which Lundy responded.

"He made a joking statement saying that he had finished with her and then drove back to Palmerston North, but he said it in a sarcastic tone."

Mark Lundy discussed bankruptcy, in the weeks leading up to his wife and daughter's murders.

The Crown alleges a motive for murdering his wife was to claim her life insurance, amid financial woes.

Maria Norrelle, formerly married to Christine Lundy's brother, says a venture Lundy was involved in needed a million dollar investment.

"Mark mentioned that Christine wasn't sleeping well, but he wasn't worried about it. I'm not sure if it was that night or another night, but he slurred bankruptcy at me."

Mark Lundy and his wife had increased their insurance, the week before Christine Lundy was found dead.

His younger brother Craig Lundy has taken the stand in the High Court in Wellington.

He says Lundy brought up the issue of life insurance just days after the killings, of his own accord.

"Mentioned that the mortgage would be cleared because of an insurance policy."

Craig Lundy says his brother wasn't sure if the policy was updated, as he hadn't made a payment on it. 

His brother and sister in law have both explained how, of his own accord, Lundy told them he'd updated their insurance policy, the week before Mrs Lundy died.

Andrea Lundy says it came up during dinner, just a few days after the murders.

"Mark did mention that he could've had a million dollar policy but they've just gone with the five hundred

"So he said 'there's no motive for money'."

Friend called Lundy

The High Court has heard how a close friend of Mark Lundy’s called him – to tell him something was wrong at his house.

That was the morning Mark Lundy’s wife and child were found hacked to death.

He's now on trial in the High Court in Wellington for their murders.

Close friend Stuart Durham went to Karamea Crescent in Palmerston North, after Lundy called from Wellington, looking for Christine.

"Being stopped at a police cordon, and where I was stopped I could see police tape around his place. I didn't know what actually happened, and told him he should get home."